Where 2.0 Presentation April 20

Adapting Daily Dealsto Live LBS.

Perry Evansfounder & ceo, Closely Inc.

Where 2.0April 20, 2011

our vantage point

< a screen shot of a Jabber IM client app circa 2003. Yep, we’ve been thinking about this space for awhile. >

Topics

• Obligatory Industry Fanboy Slides• Small Business Viewpoint• The |Blunt| Instrument of a Deal• Where Do | Will Deals Come From?• Where Do | Will Deals Go? • Tension + Leverage

Daily Deal Phenomenon

• ~$3B “Captured Spend”• Hundreds (and hundreds) of

daily deal sites/providers• 50-100K businesses in deal

distribution queue• ~80M opted-in consumers

WTF?

What’s The Formula

• 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

• 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

Tour Bus Consumer

Quantity& Timing Control

SMB Viewpoint

We Love This We Hate This

No Customer List

Featured Distribution

Position

Deal Design: Refinement, Complexity, Noise

Promotion Types & Use

Cases

Distribution

Self-serve

Shifting Deals Towards Live/LBS

THE |BLUNT| INSTRUMENT

Mainstream Daily Deal Today

• Fixed terms, time-limited offer, pre-purchase for print/mobile Voucher

• Customer Name & coupon identity in “redemption document”

Mainstream LBS Today

• Simple offers, accessed on check-in/place pages, fulfilled live via mobile/user action– Reward social broadcasting (implicit = sharing)– Loyalty-oriented– Modest fulfillment & tracking

• Mostly trial & learn– National local chains + edge case SMB’s

Expanding the Instrument

• Offers vs. Deals– Casual vs. Commerce– Specials + Activities/Events– Pre-purchased vs. Pull – Incentive vs. Reward

• Public vs. Private– Open to all– Selective to:

• Customers: Best, most frequent, most vocal… • Conditions: Time, events, referral, situational…

Deals shift to Self Administered Variable Value Live Social Promotional Units• Catchy, huh? – Yield management instrument– Business customized & controlled– Flexible connections to distribution

• Variable Value:– Day, time parting– Conditional: 4-top, frequency, etc

• Live: – Bonus alerts– API-driven bonuses

WHERE DO | WILL DEALS COME FROM?WHERE DO | WILL DEALS GO?

Where’s the Daily Deal Money? (via @Yipit)

Check-in Propensity[inclusive/social vs. individual/reserved]

Collapsing Distribution Silos:Stimulating Demand with/through Visitors & Customers

Intentioned, Discovered, Serendipitous

• Live Search Position/Tags• Live Display Feed/Ads• Daily Deal Campaigns• Paid Places Position

• Search, Map, Social, LBS Place Pages, SMB Site• API/Dev paths

We’re All Going to Live

• Self-serve + live media go hand-in-hand– Mobile is the obvious instrument of choice

• SMB Behavior is the big unknown• Product/design does not solve time/fear issues

Self-serve Aims for Mainstream

• GroupOn Live• LivingSocial Instant• Facebook Deals• Google Places Offers• Foursquare Specials• Yelp Specials & Deals• Closely ;)

Dashboard

Remote Control

Advancing the Self-serve Model (Some of our Work @Closely)

Distribution Simplicity• Single entry live publishing across social, search/places, deal

channels, business website, ad widgets• Customer selection & distribution models: view socialselect.com• Integrate self-served deals + organized campaigns

Self-serve Refinements• Remote control vs. dashboard user experiences• Create & save offers, turn on/off any time• Schedule & trigger based control of “live” and “post” actions

Shout out to Foursquare’s Progress with Specials in 3.0!

Industry Tensions to Watch

• Business Involvement Challenges– Access to Owner– Time Expectations– Measures ROI against “family time”

• Commerce Model Tug– Pull of pre-paid commerce models– Counter-current of live open local

distribution

< clouds breaking, angel singing >

Thank You!

• Twitter: @perryevans@closely

• Email:[email protected]

• Blog:Closely.com/blog