Webinar-Daily Deals and Mobile-Engagement Explained
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Transcript of Webinar-Daily Deals and Mobile-Engagement Explained
Msgme Industry* Insights
Kane Russell, VP of Marke,ngWaterfall Mobile
* Daily Deals And Mobile -‐ Engagement Explained
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Waterfall Mobile and the Msgme Pla:orm
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 & TwiXer
๏ Free trial: www.msgme.com๏ API suite: developer.msgme.com๏ Custom applica,on development๏ Short code provisioning, cer,fica,on
& audit management
Msgme
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๏ 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
Objec>ves
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Daily Deals -‐ “Hot”
All Summer/Fall 2011 Headlines
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Daily Deals -‐ “Not”
All Summer/Fall 2011 Headlines
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What’s Affec>ng 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 Es>mates
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Is Deal Fa>gue 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)
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Daily Deals Industry Revenue Projec>ons
Source: Local Offer Network EsAmates
2010 2011
$2.67
$1.12
US Group Buying/Daily Deals Market INDUSTRY REVENUE (GROSS)
in billions of dollars
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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
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Economics of Daily Deals
Consumers
Merchants
Daily Deals Service Providers
Before
Deal Day
DuringAjer
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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: ,me un,l provider pays merchant
๏ Average >cket: the normal purchase amount at merchant establishment
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Deal Day
๏ Merchant revenue: amount of revenue generated for merchant
๏ Provider revenue: amount of revenue generated for provider
๏ Redemp>on 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 transac,ons
๏ 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
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Ajer Deal Day
๏ “Yelp” effect: percep,on of merchant aler daily deal promo,on
๏ Repeat customers: number of consumers who return to merchant
๏ “Deal hunter” effect: number of consumers willing to buy at full price
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An Example Daily Deal Promo>on
According to terms from Techcrunch “Stop The Hate,” hop://tcrn.ch/nIW:Q:
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So How Can This Work For A Merchant?
Unfortunately, not as simple as “merchants should nego>ate beoer”:
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Daily Deals Industry Factors
Low margin businesses face much greater risks running a daily deal:
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Daily Deals Execu>on Factors
Daily deals can be profitable if they aoract new and repeat business:
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Purng It All Together
Higher margin business + nego>ate terms + execute well:
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Daily Deals Success Factors
๏ For Merchants
-‐ Nego,ate beXer terms with deal providers
-‐ Make sure daily deals is right for your business
๏ For Merchants & Providers
-‐ AXract new customers with daily deals
-‐ Make sure new customers return
-‐ Recruit these new customers as brand ambassadors
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Mobile Marke>ng CRM
1) Build a mobile subscriber database
2) Mone>ze database through interac>ve mobile communica>on campaigns
IVR
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Time To Invest In Mobile Is Now
Source: Forrester
Which describes your mobile strategy?
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Time To Invest In Mobile Is Now
Source: Forrester
What kind of investment in mobile do you foresee in 2011?
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Time To Invest In Mobile Is Now
Source: Forrester
What do you feel are top uses for mobile?
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Mobile and Daily Deals
๏ ABract new customers with daily deals
Vet daily deal sign ups against ac>ve subscriber list
No>fy current customers of alterna>ve promo>ons
๏ 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 interac>ve campaigns
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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 aler three months
๏ Mobile coupon pitches gemng highest redemp,on 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
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Key Takeaways
For Merchants:
๏ Perform due diligence to make sure daily deal right for you
๏ Drive new and repeat business
๏ Adopt a life,me value perspec,ve
For Daily Deals Providers:
๏ Not all revenue is good revenue
๏ Encourage merchants to think beyond the campaign
๏ Differen,ate brand with innova,ve technology solu,ons
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Any Ques>ons?
For more informa,on visit www.msgme.com
Or contact us directly: marke,[email protected]
More industry informa,on available on our blog @ blog.msgme.com
Case studies are available @ clicky.me/msgmecs
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