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Presentation by Andrew Moss, BuyWithMe, Gravity Summit FutureM, Harvard Faculty Club, 9-12-22

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  1. 2. <ul><li>The “Daily Deal” is now a proven customer acquisition model rooted in discovery of new local experiences. First wave of a local commerce revolution. </li></ul><ul><li>Second wave is rolling, with major players adding algorithms and mobile apps that connect users and merchants based on proximity , combination of individual preferences and real-time location data. </li></ul><ul><li>Third wave will focus on relationships . Long-term winners will expand their offering to manage a full engagement model between consumers and merchants, and in the process transform local commerce. </li></ul>Changes in technology, buying behavior and social networking combined to create a profound opportunity to transform local commerce.  
  2. 3. BuywithMe Corporate Overview Investors 185+ employees Goal 1.2MN + Members Founded 2009 Boston and New York Locations to enable local merchants and high value consumers to discover each other, engage with each other and commercially transact with each other Phoenix San Diego San Francisco Seattle Wash D.C. Active MSAs Atlanta Austin Boston Chicago Dallas Houston Los Angeles Miami New York Philadelphia Founded, Boston May 2009 The premier social commerce platform Use promo code “gravity” to try us out with 20% off any purchase!
  3. 5. All Merchants Have A Common Problem (Online Advertising) (Local Newspaper) (Yellow Pages) (Television) (Radio) Upfront Costs Un-Measurable Continuous Investment My business needs new customers! My business needs repeat customers!
  4. 6. The Market – “Daily Deals” defined <ul><li>The “Daily Deal” platform is a solution, connecting merchants with local customers. </li></ul><ul><li>Consumers use the platform to discover new businesses, get deep discounts, and share them with their friends and colleaugues. </li></ul><ul><li>Businesses use the platforms to acquire new consumers on a performance basis . </li></ul><ul><li>Daily deal is an online CPA based marketing campaign for a local business. </li></ul>
  5. 7. The Market - History Note: Yelp and Facebook have announced they intend to cease deals services soon. Total Number of Players In Space
  6. 8. The Market – Industry Structure * From Yipit presentation Daily Deal Sites Merchant Services SOON… Merchant Agencies Consumer Services Aggregators White Label Publishers Vertical Deal Sites Data Exchanges
  7. 9. BuyWithMe – Merchant Centric Daily Deals National Footprint / Local Focus / Merchant Centric 2 STRUCTURE PROMOTION: Build a compelling promotion with the merchant that works for the merchant 3 SIGN-OFF ON CREATIVE MATERIALS: Collaborate on the brand-enhancing marketing material we design with the merchant 1 THE PITCH : Understand the merchant ’s demand generation needs 4 CREATE A SPOTLIGHT: Our local commerce platform creates a wave of demand that drives customers to the merchant 5 MEASURE: Our platform monitors promotions purchased, customer visits, and redemptions
  8. 10. BuyWithMe – Merchant Centric Daily Deals A Complex Platform Disguised as a Simple Deal Consumers Email Web Mobile Social Group Social
  9. 11. BuyWithThree generates viral buzz for our partners ’ businesses because we incentive our customers to spread the word about our promotion . BuyWithThree
  10. 12. Customers use Facebook, Twitter, and email to spread the word after they purchase your promotion. BuyWithThree creates authentic and viral messaging on social networks about your business. BuyWithThree
  11. 13. Actual BuyWithThree Buzz on Twitter and Facebook BuyWithThree
  12. 14. Sample Partner Results 4,241 $106,025 Vouchers sold Sales 14,734 $ 114,591 Vouchers sold Sales 14,665 $ 366,625 Vouchers sold Sales
  13. 15. <ul><li>43% of our buyers have gifted a voucher </li></ul><ul><li>51% of our buyers recommend merchants to others after redemption </li></ul><ul><li>36% of our buyers write merchant review on a site such as Yelp or CitySearch </li></ul><ul><li>90% of buyers are new to the merchant or product </li></ul><ul><li>88% of our travel buyers were not planning on visiting the hotel, destination or property before they saw our promotion. </li></ul><ul><li>33% of buyers will return and make a full-priced purchase, and average 2.9 return visits </li></ul><ul><li>75% of those who return do so within 1 month </li></ul><ul><li>A full 87% of buyers will spend more than the value of the voucher, average 32% upsell </li></ul>Buyer Behavior Statistics (from surveys)
  14. 16. LTV of our merchants directly correlates with LTV of the consumers we deliver to them. <ul><li>only works for us when it works for our customer </li></ul><ul><li>only works for our customer when it works for their customers </li></ul><ul><li>real race is not race to scale… it ’s the race to value </li></ul>Our Philosophy – Create Value
  15. 17. BuyWithMe - Next-Generation Online Local Commerce Platform Restaurants Clothing/Accessories Health/Personal Care Auto Related Travel/Leisure Home/Furniture Merchants Consumers How do I Generate New Customers – Daily Deal How do I Retain Customers – Rewards / Loyalty Merging Demand Generation and Ongoing Engagement Ongoing Engagement Demand Generation
  16. 18. merchant merchant Transparent Actionable <ul><li>Measure daily deal ROI </li></ul><ul><li>Customized offerings </li></ul><ul><li>Identify trends </li></ul><ul><li>Filter out the “wrong” customers </li></ul><ul><li>Always-on engagement </li></ul><ul><li>No voucher / No training </li></ul><ul><li>Married to mobile </li></ul><ul><li>Drives repeat customers </li></ul><ul><li>Flexibility </li></ul>The Benefits of Our Engagement Platform
  17. 19. BuyWitMe
  18. 20. Case Study: The Oak Room (Boston) <ul><li>Merchant: Oak Room </li></ul><ul><li>Market: Boston </li></ul><ul><li>Category: Exclusive Dining Experience </li></ul><ul><li>Understandings </li></ul><ul><li>Off the menu pre-fixe dinners both delivers an exclusive experience for our users and better protects the merchant ’s brand value. </li></ul><ul><li>We can price the pre-fixe at a premium which maximizes revenue </li></ul><ul><li>The Deal </li></ul><ul><li>$89 for a 3-course tasting menu for two at the Oak Room </li></ul><ul><li>Results </li></ul><ul><li>SOLD OUT! </li></ul><ul><li>After the promotion we immediately began crafting a new exclusive promotion with the Oak Room </li></ul>SOLD OUT! 1,000 Sold! $86,700 Gross $20,500 Net Client Renewed Immediately
  19. 21. Case Study: Amethyst Body Wraps (Dallas) <ul><li>Merchant: Amethyst Body Wraps </li></ul><ul><li>Market: Dallas </li></ul><ul><li>Category: Body Wraps </li></ul><ul><li>Understandings </li></ul><ul><li>Body wraps have niche appeal </li></ul><ul><li>Packing multiple quantities into one package and offering at a better value drives upsell </li></ul><ul><li>We want to get our users to purchase a higher price point package with a better value proposition. This presents more savings for the consumer, guaranteed repeat visits for the merchant, and more revenue for BWM </li></ul><ul><li>The Deal </li></ul><ul><li>1 body wrap for $39 </li></ul><ul><li>3 body wraps for $85 ($28 each) </li></ul><ul><li>Results </li></ul><ul><li>The higher priced 3 wraps package outsold the 1 wrap package 2:1 </li></ul><ul><li>Asked to rate our services, Amethyst gave perfect scores and are excited to partner with us again </li></ul>66 Sold! $4,700 Gross $2,500 Net 4x Average Net Revenue!
  20. 22. Case Study: Boston Red Sox (Boston) <ul><li>Merchant: Boston Red Sox </li></ul><ul><li>Market: Boston </li></ul><ul><li>Category: Exclusive Tickets Package </li></ul><ul><li>Understandings </li></ul><ul><li>Users are looking for unique, exclusive content and willing to pay a premium </li></ul><ul><li>Margins on tickets and experiences are high so we can package and promote them well </li></ul><ul><li>MLB requires approvals at the League and team levels we had to secure </li></ul><ul><li>The Deal </li></ul><ul><li>$300 for ticket + meet & greet with a player + private lunch + exclusive batting practice viewing + gift bag </li></ul><ul><li>Shown only to our most relevant Boston members and hidden from rest after our Email team segmented the list </li></ul><ul><li>Results </li></ul><ul><li>SOLD OUT! Added a waiting list </li></ul><ul><li>40% email open rates and big buzz </li></ul><ul><li>Asked to rate our services, the Red Sox gave perfect scores and said “WOW…. [we are] particularly pleased with the ability to filter the customer databases to send a more targeted campaign” </li></ul>SOLD OUT! $15,600 Gross $4,160 Net Win for Sox Win for Users Win for BWM
  21. 23. <ul><li>The Promotion </li></ul><ul><li>Bishop Farm Bed & Breakfast and Cottages </li></ul><ul><li>$99 gets you a one-night stay, bottle of wine, and breakfast for two at ($209 value) </li></ul><ul><li>The Results </li></ul><ul><li>SOLD OUT! Only had 200 to sell and they were all sold within 1.5 days </li></ul><ul><li>Partner Testimonial </li></ul><ul><li>Heather Salter, Innkeeper of Bishop Farm says, “I was ecstatic about the response I got from the Spring travel sale with BuyWithMe ( out of Boston.  We received over 5,000 visits to our website, and a check for $18,000 before anyone even came to the B&B, and we garnered many new TripAdvisor reviews from our guests. You just can’t put a price tag on the amount of marketing we got out of this promotion.” </li></ul>Immediate Bookings Huge Exposure to New Customers Invaluable Social Media Impact Case Study: Bishop Farm Bed & Breakfast