lss'11: the timely death of the daily deal
DESCRIPTION
The Timely Death of the Daily Deal [and the Birth of Everyday, Everywhere, Every Way Deals], A Daily Deal Insider Speaks. Perry Evans, CEO Closely The industry surrounding Daily Deals is rapidly morphing from one-deal-per-day delivered via featured email campaigns into offer exchange networks and live mobile commerce, and loyalty promotion. This talk profiles these changes, and highlights the challenges to merchants, media publishers and consumers within an industry in rapid reconstruction.TRANSCRIPT
The Timely Death of the Daily Deal
…and the birth or every day, everywhere, every way promotion.
Perry EvansCEO, Closely Inc.
Local Social SummitLondon, November 9, 2011
One deal per day, per metro area, emailed to you, with a group tipping point.
The Daily Deal 2010
One deal per day, per metro area, emailed to you, with a group tipping point.
Many deals, various times,
X X X
across locations
X X
via email & mobile.
One Year Later
Are we in a revolution?
Are Daily Deals the center of your future marketing spend?
Pfft, no.
Are we in a revolution?
Should you promote yourself differently for the mobile social consumer?
Of course.
Daily Deals represent one [highly visible] element of the reinvention of direct
marketing.
and the path towards yield management.
Novelty vs. Novel?
Consumers:
• Can finally “price shop” locally. • Showing need to be constantly
re-acquired.• Consumer is empowered,
no turning back.
Businesses:
• Love the underlying concept.• Hate business model and lack
of control. • The most desirable and
simplest consumer action.
Some Industry Shifts
• Product Patterns• Distribution• Merchant Experience• Consumer Targeting
Product Patterns
• Stepping towards yield management– Time/date– Product type/packaging
• Return visits & loyalty• Smarter, more contextual
promotions
Distribution in Rapid Transition
• The Rise of Offer Networks– Google, Amazon, Yipit, LON, Tippr, …– Diminishing returns on consumer email
• Food Chain is in Formation– You Don’t Have to Win with the
Consumer to Play
• Placement Expansion– Search, Mobile, Maps, Display – SMB web pages
Merchant Experience• The Noise is Overwhelming
– Revert to major brands and trusted relationships
– Open to breakthrough products• Merchant Tools Evolving Quickly
– Redemption– Tracking & Analytics
• Everyday Promotion Dashboard– FB, Groupon Now, Twitter intro
SMB to live publishing
Consumer Targeting
• Personalization– Filtering is critical
• Verticalization– New brands + commerce
for known brands
• Integrate into search & mobile behavior
Industry Shakeout
• Failure of low value clones• It’s not as easy as it seemed
o Growing cost of email acquisitiono Diminishing action rates
• Merchant loyaltyo Single-product model challenged
Implications for Local Media
When Shopping Models Shift
HOTELS
• 1990– The Rack Rate– Reservations centered– Agents controlled promotion
• 2010– Variable pricing– Time, quantity, duration, auction– Pre-purchased dominates– Integral to purchase decision– Direct-to-customer loyalty
Redrawing Promotion Distribution
Customer
Social Audience
Organic Distribution
Media & Commerce Channels Campaigns: Scheduled + Live
Promotion “SEO/API”
Social Marketing
Loyalty & Referral Marketing
Promotion Content & Dashboard
Redrawing Promotion Distribution
Customer
Social Audience
Organic Distribution
Media & Commerce Channels If your business is here.
Playing here may be mission critical.
Babies can be unattractive, but…