Refining the GroupOn “Blunt Instrument” Local Social Summit November 18, 2010
May 12, 2015
Refining the GroupOn “Blunt Instrument”
Local Social SummitNovember 18, 2010
Topics
• The Daily Deal Phenomenon • Small Business Viewpoint• Daily Deals: Fast Forward• Local Media Playbook
Straw Poll
Which best describes your view of Daily Deals?
A. It’s an over-hyped model that is great for desperate times, but it’s not sustainable
B. It’s a foundational shift, that is a BIG part of the future of local shopping
Daily Deal Phenomenon
• Gross Revenue pacing at ~$1B, $2B 2011– GroupOn fastest growth tech company, ever– $600M from a few thousand local SMB’s
• 150-200 daily deal sites, 400+ deals/day– Every local media co entering in some form– Scaling internationally
• 40K+ businesses in deal distribution queue• 15+ startups aggregating deals
The Success Formula
• Struck a chord of pent-up consumer desire– Get out again, without the expense of 2008– Hip to save, remove the embarrassment of coupons– “Group” key to concept/brand, now tangential
• Struck a chord of SMB local lead frustration– Complexity & mediocrity of media and search– Zero risk model
• Perfect storm of timing (economy, social) + brand
SMALL BUSINESS VIEWPOINT
SMB Love Fest?
Lead GenerationSuccess
Pre-paid CustomersZero Risk
Deep Margin Cut
Drive By Customer
Quantity& Timing Control
SMB Viewpoint
We Love This We Hate This
No Customer List
Deal Design: Refinement, Complexity, Noise
DAILY DEALS: FAST FORWARD
SMB Social Marketing & Deals
• Consumers follow businesses for special treatment
• Deals/customer special events as mainstream social participation
• Emerging picture:– Brand/conversationalists (edge)– Lead marketing (scale)– Value-added intermediation
(mainstream)
RazorFish October 2009 Study
Key Shifts in Process
Promotion Types & Use
Cases
Distribution
Self-serve
Deals Morph with Mobile & Social: Live Social Marketing
• Promotion Use Case Expansion– Casual offers: enticements to visit– Events & activity announcements– Social offers: friends/neighbor behavior– Return visit loyalty – Networked appointment bookings
• Real Time, Any Time: Yield Management– Live publishing– Mobile search & personalized discovery
Deal Distribution: Silo > Ubiquity
• Live Search Tags• Live Display Feed/Ads• Daily Deal Campaigns• API: Consumer Apps/Sites
• Feed Distribution to Maps, Search,
Social, LBS Partners• API/Dev Programs
Self-serve Aims for Mainstream
• GroupOn• Facebook Deals• Google Places Offers• Foursquare• Yelp• Twitter?• Closely ;)
Dashboard
Remote Control
The Big Ideas
• Pre-paid purchase model could be foundational
• Live social marketing can evolve to yield management for local.
• Offer content is a new shopping content layer, akin to Reviews.
Local Media Playbook?
Value-added Aggregation of Local Offers. Search Tags. Live Offer Display. Website Widget.
Package to Your Strengths.
1. Zero in on Social Promotion2. Package & Simplify Distribution3. Instigate the SMB Social Graph