The Timely Death of the Daily Deal

A copy of my keynote presentation at the London Local Social Summit, November 2011.

Transcript

1. The  Timely  Death  of  the  Daily  Deal     …and  the  birth  of  every  day,     everywhere,  every  way  promo7on.   Perry  Evans   CEO,  Closely  Inc.   Local  Social  Summit   London,  November  9,  2011  
2. One  deal  per  day,  per  metro  area,  emailed  to   you,  with  a  group  7pping  point.   The  Daily  Deal     2010  
3. One  deal  per  day,  per  metro  area,  emailed  to   you,  with  a  group  7pping  point.   Many deals, various times, X X X across locations X X via email & mobile. One  Year  Later  
4. Are  we  in  a  revolu7on?   Are  Daily  Deals  the   center  of  your  future   marke7ng  spend?   PM,  no.    
5. Are  we  in  a  revolu7on?   Should  you  promote  yourself   differently  for  the  mobile   social  consumer?   Of  course.  
6. Daily  Deals  represent  one   [highly  visible]  element  of   the  reinven7on  of  direct   marke7ng.       and  the  path  towards   yield  management.  
7. 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  ac7on.  
8. Some  Industry  ShiYs   •  Product  PaZerns   •  Distribu7on   •  Merchant  Experience   •  Consumer  Targe7ng  
9. Product  PaZerns   •  Stepping  towards  yield   management   –  Time/date   –  Product  type/packaging   •  Return  visits  &  loyalty   •  Smarter,  more  contextual   promo7ons  
10. Distribu7on  in  Rapid  Transi7on   •  The  Rise  of  Offer  Networks   –  Google,  Amazon,  Yipit,  LON,  Tippr,  …   –  Diminishing  returns  on  consumer  email   •  Food  Chain  is  in  Forma7on   –  You  Don’t  Have  to  Win  with  the   Consumer  to  Play   •  Placement  Expansion   –  Search,  Mobile,  Maps,  Display     –  SMB  web  pages  
11. Merchant  Experience   •  The  Noise  is  Overwhelming   –  Revert  to  major  brands  and   trusted  rela7onships   –  Open  to  breakthrough  products   •  Merchant  Tools  Evolving  Quickly   –  Redemp7on   –  Tracking  &  Analy7cs   •  Everyday  Promo7on  Dashboard   –  FB,  Groupon  Now,  TwiZer  intro   SMB  to  live  publishing  
12. Consumer  Targe7ng   •  Personaliza7on   –  Filtering  is  cri7cal   •  Ver7caliza7on   –  New  brands  +  commerce   for  known  brands   •  Integrate  into  search  &   mobile  behavior  
13. Industry  Shakeout   •  Failure  of  low  value  clones   •  It’s  not  as  easy  as  it  seemed   o  Growing  cost  of  email  acquisi7on   o  Diminishing  ac7on  rates   •  Merchant  loyalty   o  Single-­‐product  model  challenged  
14. Implica7ons  for  Local  Media  
15. When  Shopping  Models  ShiY   HOTELS   •  1990   –  The  Rack  Rate   –  Reserva7ons  centered   –  Agents  controlled  promo7on   •  2010   –  Variable  pricing   –  Time,  quan7ty,  dura7on,  auc7on   –  Pre-­‐purchased  dominates   –  Integral  to  purchase  decision   –  Direct-­‐to-­‐customer  loyalty  
16. Redrawing  Promo7on  Distribu7on   Customer   Social  Audience   Organic  Distribu7on   Media  &  Commerce  Channels   Merchant   Campaigns:  Scheduled  +  Live       Promo7on  “SEO/API”       Social  Marke7ng         Loyalty  &  Referral  Marke7ng       Promo7on  Content  &  Dashboard  
17. Redrawing  Promo7on  Distribu7on   Customer   Social  Audience   Organic  Distribu7on   Media  &  Commerce  Channels   Merchant   If  your  business  is  here.           Playing  here  may  be  mission     cri7cal.    
18. Babies  can  be  unaZrac7ve,  but…