Webinar: Daily Deals and Mobile Engagement Explained
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Waterfall Industry* Insights Kane Russell, VP of Marke,ng Waterfall * Daily Deals And Mobile Engagement Explained
Transcript of Webinar: Daily Deals and Mobile Engagement Explained
Waterfall Industry* Insights
Kane Russell, VP of Marke,ngWaterfall
* Daily Deals And Mobile -‐ Engagement Explained
Waterfall Mobile and the Msgme Pla4orm
Waterfall Mobile๏ Founded August 2005๏ Offices in SFO (HQ), NYC & Aus=n๏ Backed by Vista Equity Partners ๏ Cross-‐channel mobile & social CRM via SMS,
MMS, QR Codes, IVR, Facebook & TwiRer
๏ Free trial: www.waterfall.com๏ API suite: apidocs.waterfall.com๏ Custom applica=on development๏ Short code provisioning, cer=fica=on
& audit management
๏ Daily deals -‐ “hot” or “not?”
๏ Economics -‐ how daily deals create value
๏ Success factors -‐ how daily deals can stay “hot”
๏ Solu,on -‐ mobile marke,ng CRM
๏ Implementa,on -‐ mobile and daily deals
๏ Key takeaways
Objec8ves
Daily Deals -‐ “Hot”
All Summer/Fall 2011 Headlines
Daily Deals -‐ “Not”
All Summer/Fall 2011 Headlines
What’s Affec8ng Revenue?
$0
$15
$30
$45
$60
$75
$90
Jan ‘10 2/10 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 Feb ‘11
$62
$89
$81$76
$55
$46
$53
$29$31$26
$21$19$14
$11
Millions of D
ollars
Month/Year
Source: Techcrunch
2010 -‐ 2011 Groupon Revenue EsGmates
Is Deal Fa8gue A Factor?
Subscribed to daily deals
Subscribed to Groupon & Living Social
Only buy from Groupon
Subscribed to at least 3 providers
Been subscribed more than 1 year
Now opening fewer or none of offers
Will buy fewer deals than have in past 68%74%
20%36%41%
72%86%
Source: Local Offer Network EsAmates
Daily Deals Consumer Survey Data (n=943)
Daily Deals Industry Revenue Projec8ons
Source: Local Offer Network EsAmates
2010 2011
$2.67
$1.12
US Group Buying/Daily Deals Market INDUSTRY REVENUE (GROSS)
in billions of dollars
Daily Deals Industry Offers Growth
Source: Local Offer Network EsAmates
10,000
20,000
30,000
40,000
2010 Q1 2010 Q2 2010 Q3 2010 Q4 2011 Q1 (E)
6,895
14,462
19,67622,163
39,993
US Group Buying/Daily Deals MarketTOTAL OFFERS PUBLISHED
Economics of Daily Deals
Consumers
Merchants
Daily Deals Service Providers
Before
Deal Day
DuringA_er
Before Deal Day
๏ Daily deal value: amount consumer would pay normally
๏ Daily deal price: amount consumer pays for daily deal
๏ Daily deals sold: number of daily deals purchased by consumers
๏ Revenue split: agreed upon provider and merchant revenue share
๏ Payment terms: Ome unOl provider pays merchant
๏ Average Gcket: the normal purchase amount at merchant establishment
Deal Day
๏ Merchant revenue: amount of revenue generated for merchant
๏ Provider revenue: amount of revenue generated for provider
๏ RedempGon rate: percent of customers that purchase and use daily deal
๏ New customers %: percentage of new customers for merchant from deal
๏ Credit card processing: charge by credit card companies for transacOons
๏ COGS: cost to the merchant of good sold
๏ Other merchant costs: cost to the merchant of doing business
๏ Consumer spend: consumers may spend more/less than daily deal value
AMer Deal Day
๏ “Yelp” effect: percepOon of merchant aQer daily deal promoOon
๏ Repeat customers: number of consumers who return to merchant
๏ “Deal hunter” effect: number of consumers willing to buy at full price
An Example Daily Deal Promo8on
According to terms from Techcrunch “Stop The Hate,” hgp://tcrn.ch/nIWiQ:
So How Can This Work For A Merchant?
Unfortunately, not as simple as “merchants should negoGate beger”:
Daily Deals Industry Factors
Low margin businesses face much greater risks running a daily deal:
Daily Deals Execu8on Factors
Daily deals can be profitable if they agract new and repeat business:
PuTng It All Together
Higher margin business + negoGate terms + execute well:
Daily Deals Success Factors
๏ For Merchants
-‐ NegoOate beRer terms with deal providers
-‐ Make sure daily deals is right for your business
๏ For Merchants & Providers
-‐ ARract new customers with daily deals
-‐ Make sure new customers return
-‐ Recruit these new customers as brand ambassadors
Mobile Marke8ng CRM
1) Build a mobile subscriber database
2) MoneGze database through interacGve mobile communicaGon campaigns
IVR
Time To Invest In Mobile Is Now
Source: Forrester
Which describes your mobile strategy?
Time To Invest In Mobile Is Now
Source: Forrester
What kind of investment in mobile do you foresee in 2011?
Time To Invest In Mobile Is Now
Source: Forrester
What do you feel are top uses for mobile?
Mobile and Daily Deals
๏ ABract new customers with daily deals
Vet daily deal sign ups against acGve subscriber list
NoGfy current customers of alternaGve promoGons
๏ Make sure new customers return
Capture mobile subscribers upon deal sign up
Capture mobile subscribers upon purchase
๏ Recruit these new customers as brand ambassadors
Run “bring a friend” campaigns for new subscribers
Drive online brand equity via interacGve campaigns
Case Study: Gelato Spot
Success to date:
๏ Had customers opt-‐in for mobile subscriber list when they used daily deal vouchers
๏ 80% of these customers remained on list aQer three months
๏ Mobile coupon pitches geZng highest redempOon rate for any other medium
Next steps:
๏ Encourage new customers to return with their friends
๏ Run campaigns geared toward brand value instead of coupon purchases
Source: ClickZ MarkeAng News
Key Takeaways
For Merchants:
๏ Perform due diligence to make sure daily deal right for you
๏ Drive new and repeat business
๏ Adopt a lifeOme value perspecOve
For Daily Deals Providers:
๏ Not all revenue is good revenue
๏ Encourage merchants to think beyond the campaign
๏ DifferenOate brand with innovaOve technology soluOons
Any Ques8ons?
For more informa+on visit www.waterfall.com
Or contact us directly: [email protected]
More industry informa+on available on our blog @ waterfall.com/blog/
