7. High Repeat Rate 43% of daily deal merchants in May had run at least one prior deal
8. Shifting Ad Spend Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.
9. High Merchant Satisfaction Data from Yipit phone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.Groupon’sreports repeat interest at 97% (grouponworks.com)
10. Breakage Rate ≤20% Recent data on Groupon is consistent: (i) breakage of 10% (TechCrunch, 8/14/10), and (ii) 20% redemption in month 1 and 15% redemption in month 12 (Chicago Tribune 8/16/10).
11. Profitable at 19% Retention Assumptions from industry research and Yipitphone survey of SMBs who have completed a Daily Deal in the last 12 months. 80 responses.
I'm really excited to get the chance to talk to you guys about how Daily Deals are going from something you archive in your inbox to a transformation in Local Commerce. At Yipit and I think a lot of people here agree that the deals are just a catalyst to the seismic shift bringing local spending online.
Trends from the last two years, and extrapolating from those trends talking a look at what’s to come – how daily deals and what I’ll call now, Local Ecommerce will eventually be a major market, representing a sizable chunk of all local spending
One of my favorite slidesShaped up very similar to the ad tech landscape
Daily Deal industry grew 18% in May
When I talk about sustainability, I’m talking about sustainability for the entire industry. I’m not talking about issues highlighted in the Groupon S-1 – those issues highlighting possibly deteriorating business metrics in their oldest metros speed only to the ‘margin’ of these wildly profitable businesses – what I’m here to talk about today is that the the overall spend in this category will continue to grow at a rapid paceWhat can stop this? If merchants aren’t getting a satisfactory channel for acquisition of new customers
- It’s sure as heck not going to look like it does today- The fact that we call them daily deals is an anachronism from the beginning of the industry
The biggest threat to Daily Deals is probably email fatigue – no individual company owns it so the consumers inbox is becoming a modern day tragedy of the commons
Google, capturing intent, has an opportunity to push these deals when users do searches on Google and Google Maps.Think about a hardware store
Google, capturing intent, has an opportunity to push these deals when users do searches on Google and Google Maps
One of my favorite slidesShaped up very similar to the ad tech landscape
Nobody pays closer attention to the daily deals/Groupon/LivingSocial industry than Vinicius Vacanti, CEO of daily deals aggregator Yipit.So when we saw that Facebook launched a Groupon clone called Deals last night, we made sure to get Vacanti on the phone this morning. Per usual, he enlightened us.Nick Carlson, Deputy Editor at BusinessInsider
