Merchant sales training miller deals 03162011

Merchant Sales TrainingGroup Buying Platform & Network

TIPPR CONFIDENTIAL 2

Who does what?

1. Provides technical platform

2. Pays Merchants3. Customer support4. Offer scheduling

Deliver sales pitchNegotiate offer & sign

merchantFill out offer Outline

That’s it!


The Pitch – Messages that resonate

• Promote their business with no up front cost • Merchants share in the revenue – we pay them to advertise• Associates the Miller Deals brand with their quality business • Miller Deals gives them value in exposure the other guys can’t • Promotion vs. discount• Miller Deals consumers are quality customers

– Educated with higher incomes– Vouchers … not “coupons”– Consumers are likely to spend MORE than the voucher value, especially if

treated well (They feel like they have “free” money, already)• Proven customer acquisition strategy

– Limited time promotion encourages new people to try businesses now!– Rewarding existing customers is likely to encourage them to introduce their

friends to the business• Businesses receive the e-mails of those who purchase vouchers


Be a consultant – craft the right offer

• Make sure it’s 50% off or more• Priced in line with a business’s typical or average sale

– Consumer must truly see this as a “good offer”• Limit restrictions• Leave room for up-sell upon redemption• Keep the offer simple• If business has multiple locations, make sure offer is available at all

of them

Help the merchant get the word out…

• Encourage businesses to promote on their own Facebook / Twitter accounts and e-mail lists

• Advise them to talk with managers and employees ahead of time


Daily Offer Landscape – Categories and Revenues

65%9%

8%

5%

4%3%

2% 2% 1%1%

Percentage of Quantity Sold

Food & DiningPersonal Care & ServicesAutomotiveSports & RecreationArts & EntertainmentShoppingHealth & MedicineClothing & AccessoriesHome & GardenTravel & Transportation

43%

15%

14%

6%

4%

4%

6%

3%3% 2%

Percentage of Revenue

Food & DiningPersonal Care & ServicesAutomotiveSports & RecreationArts & EntertainmentShoppingHealth & MedicineClothing & AccessoriesHome & GardenTravel & Transportation


End consumers – who’s buying?

• Group buying sites bring in “Quality” Crowd

• Women under 35• College graduates• Work full-time & have

comfortable incomes• Average offer-a-day user spends

about 60% more than the offer’s value

• Source: BIA/Kelsey ILM Conference 2010• See full article here:• http://www.netnewscheck.com/article/2010/12/09/76

78/deals-sites-bring-quality-crowd-in-the-door

http://www.netnewscheck.com/article/2010/12/09/7678/deals-sites-bring-quality-crowd-in-the-door

http://www.netnewscheck.com/article/2010/12/09/7678/deals-sites-bring-quality-crowd-in-the-door


Offer Quality Matrix


How to predict an offer’s success

ADDRESSABLE MARKET:– Businesses that appeal to a wide range of people– Ex: Everybody eats… Almost everybody has a car– Businesses offering consumables, things you’ll want or need again and again

BRAND STRENGTH:– Is it a business name everybody knows? Is it something / some place locals know and would love to

try?

LOCALE &/OR LOCATION:– Is it somewhere “special” people don’t mind driving to? A “destination” location? Somewhere

“special”? A “treat”?– Is it a business with MULTIPLE locations and in people’s 5-10 mile radius of day-to-day life

LIMITATIONS & EXCLUSIONS:– These kill offers– Keep it simple

PRICE POINT & DISCOUNT:– These offers MUST be perceived as a VALUE to the consumer– The price point needs to be in line with what people would expect to spend for one or two people or

the service offered– Needs to be at least 50% off


Categories that work

1. Restaurants / Food• Pizza places, Sandwich shops, Breakfast/Lunch

Cafés, Family or Ethnic Restaurants, Steakhouses

• Offer price points• $5 for $10 | $10 for $20 | $25 for $50 |

$30 for $60• 9 out of Top 10 offers by quantity sold in

December were restaurants• Half of Top 10 offers by revenue generated in

December were restaurants/food offers• Great email list builders


Case study – Restaurants

Merchant: Sa-Wad-Dee Thai RestaurantOffer: $12 for $25Sold: 672Gross revenue = $8,064

Offer Details: Ran over a weekend Promotion:

Online Social media

Offer Quality Checklist: Business with consumable Business with brand strength Priced appropriately & MORE than 50% off Few restrictions, customers allowed to purchase

more than one Enticing creative


Case study - Restaurants

Merchant: Koz’s RestaurantOffer: $10 for $20Sold: 620Gross revenue = $6,200

Offer Details: Ran on a single day / Thursday before Christmas Promotion:

On-air Online Social media

Offer Quality Checklist: Business with local comfort food Two locations Business with brand strength Priced appropriately & 50% off Few restrictions, customers allowed to purchase

more than one


Categories that work - continued

2. Personal Services• Laser hair removal• Facials• General spa services• Massages• Tend to be higher price points

3. Events / Activities• Sporting events (if they’re a popular team already)• Rounds of golf (Stay away from lessons)• Vacations• Movies• Price points range from low ($12 for sporting tickets) to high ($99 weekend vacation package)

4. Auto• Car Wash

– Prices range widely based on offer (Detail? Unlimited pass? Simple wash? SUVs & Trucks?)• Oil Change - $20 for $40• Multiple locations key


Case study – personal services

Merchant: The Youthful BodyOffer: $119 for $750 value (84% off)Sold: 104Gross revenue = $12,495

Offer Details: Ran over a weekend – 3 day offer Promotion:

Online Social media

Offer Quality Checklist: Business with consumable Business with brand strength Priced appropriately & MORE than 50% off Few restrictions, customers allowed to purchase

more than one Sexy creative High price point generated fewer sales but

higher revenue


Case study – Events and Activities

Merchant: Portland Public GolfOffer: Half off Foursome $50 for $100 valueSold: 150 (SOLD OUT!)Gross revenue = $7,500Offer Details: Ran for one day on a Monday Ran a week before Christmas Promotion:

On-air Online Social media

Offer Quality Checklist: Addressable market Business with brand strength Priced appropriately & 50% off Few restrictions & good for every day Redeemable at multiple courses Good creative


Case study - Vacations

Merchant: Oregon Coast Vacation RentalsOffer: $99 for $200 value on weekend vacationSold: 63Gross revenue = $6,633Offer Details: Ran for one day on a Monday Ran two days AFTER Christmas Promotion:

Online Social media

Offer Quality Checklist: Addressable market Business with brand strength Great, unbelievable price & 50% off Reasonable restrictions Enticing creative Multiple vacation location options Higher price point but generated good revenue


Case study – Events and Activities

Merchant: Angelika TheatersOffer: $5 for $10 to Angelika Theaters in Dallas and

PlanoSold: 1724Gross revenue = $8,620Offer Details: Ran for two days – a Monday-Tuesday Promotion:

Online Social media

Offer Quality Checklist: Addressable market Business with brand strength Priced appropriately & 50% off Few restrictions & good for every day Two locations Good creativeNOTE: This merchant renewed to run again


Case study - Automotive


Case study - Automotive

Offer Details: Ran over a weekend – 3 day offer(s) All three offers ran simultaneously Special sent via email to merchant’s list Promoted on social media

Offer Quality Checklist: Business with addressable market Business with brand strength Business with multiple locations Priced appropriately & different price tier offerings &

MORE than 50% off Few restrictions, customers allowed to purchase more

than one

Merchant: Lone Star Car Wash Sold: 427Gross Revenue = $19,490

Three Offers• $66 for 12-month Unlimited Pass ($200 value)

– 197 sold– $13,002 gross revenue

• $36 for 3-month Super Shine Unlimited Pass ($108 value)– 118 sold– $4248 gross revenue

• $20 for 3-month Unlimited Car Wash Pass ($60 value)– 112 sold– $2240 gross revenue


Why Should Merchants Consider Group Buying?

It’s Viral Social Proof – others are doing it, I should too Scarcity – time/quantity are limited, buy now Everybody loves a deal! Publisher is a trusted source of information It’s Local (and location counts for a lot) The better the deal, the better it works Social Media Sharing Drives real customers through the door


Categories that (generally speaking) haven’t done well

• Fitness (memberships, clubs, etc)– Exception: Some Yoga, Boot Camp classes

• Lessons (dance lessons, golf lessons)• Most retail (children’s clothing, boutiques, etc)• Flowers (creative, location, brand or timing may be issue)• Handyman or Babysitting services• Salon hair services (women are very loyal to their hairdressers)• Makeup / Eyelashes • Multi-Level Marketing offers• Over-priced, overly-restricted services or offers• Out of the way or no-name restaurants, businesses


What the merchant receives

- Sample voucher- Financial reports- Access to redemption portal


Wrap-up

Questions?


Thank you!

Merchant sales training miller deals 03162011

Business

Transcript of Merchant sales training miller deals 03162011