Online Daily Deal Sites Can they last?
Deal sites offer <ul><li>Big savings to consumers </li></ul><ul><li>Wide customer reach for businesses </li></ul>
Raking in the profits <ul><li>- IPO - $25 Billion </li></ul>- $3.6 Billion
How can they offer such big deals? <ul><li>Online group buying </li></ul><ul><li>Started in China wholesale markets, 2000 ...
Leverage social network
Why people buy? <ul><li>Who doesn ’t want a great deal? </li></ul><ul><li>Group-buying mentality </li></ul><ul><li>Anticip...
What it means for businesses? <ul><li>No need to spend money upfront on advertising  </li></ul><ul><li>Limited effort requ...
But is this a good thing? <ul><li>Small & medium-size businesses </li></ul><ul><ul><li>18% only break even  </li></ul></ul...
Attracting the wrong kind of customer <ul><li>Yelp ratings decrease in relation to Groupon offer </li></ul>
When deals go bad
“ Freaking Out” <ul><li>15-20 % redemption in first weeks </li></ul><ul><li>No support from deal site </li></ul><ul><li>To...
Not all doom and gloom <ul><li>Meet Patrick </li></ul>
Patrick says … <ul><li>“ In the beginning it didn ’ t feel like we had enough to handle the demand … There was a moment of...
<ul><li>Photos of Zumba </li></ul>
<ul><li>Photos of Zumba </li></ul>
What is the future? <ul><li>Structural weakness </li></ul><ul><li>Exposure, but no loyalty </li></ul><ul><li>Less than 1/2...
Poised for collapse <ul><li>Over the next few years, it is likely that daily deal sites will have to settle for lower shar...
Over Saturation
Deals Go Round <ul><li>$577 million opportunity </li></ul><ul><li>Signal end is near? </li></ul>
Why do we care? <ul><li>Buy deals while you can </li></ul><ul><li>Don ’t buy Groupon stock </li></ul><ul><li>Help out smal...
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Online Daily Deal Sites: Will they last?

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Pecha Kucha presentation for Theory and Audience Analysis - looked at Rice University Study on Groupon, LivingSocial and other Daily Deal sites.

Publié dans : Technologie, Formation, Business
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Online Daily Deal Sites: Will they last?

  1. 1. Online Daily Deal Sites Can they last?
  2. 2. Deal sites offer <ul><li>Big savings to consumers </li></ul><ul><li>Wide customer reach for businesses </li></ul>
  3. 3. Raking in the profits <ul><li>- IPO - $25 Billion </li></ul>- $3.6 Billion
  4. 4. How can they offer such big deals? <ul><li>Online group buying </li></ul><ul><li>Started in China wholesale markets, 2000 </li></ul>
  5. 5. Leverage social network
  6. 6. Why people buy? <ul><li>Who doesn ’t want a great deal? </li></ul><ul><li>Group-buying mentality </li></ul><ul><li>Anticipation, ticking-clock </li></ul>
  7. 7. What it means for businesses? <ul><li>No need to spend money upfront on advertising </li></ul><ul><li>Limited effort required </li></ul><ul><li>New customers arrive in droves </li></ul>
  8. 8. But is this a good thing? <ul><li>Small & medium-size businesses </li></ul><ul><ul><li>18% only break even </li></ul></ul><ul><ul><li>27% lose money </li></ul></ul><ul><li>*Rice University Study, 2011 </li></ul>
  9. 9. Attracting the wrong kind of customer <ul><li>Yelp ratings decrease in relation to Groupon offer </li></ul>
  10. 10. When deals go bad
  11. 11. “ Freaking Out” <ul><li>15-20 % redemption in first weeks </li></ul><ul><li>No support from deal site </li></ul><ul><li>Too much to handle </li></ul>
  12. 12. Not all doom and gloom <ul><li>Meet Patrick </li></ul>
  13. 13. Patrick says … <ul><li>“ In the beginning it didn ’ t feel like we had enough to handle the demand … There was a moment of panic with how we were going to deal with it.” </li></ul>
  14. 14. <ul><li>Photos of Zumba </li></ul>
  15. 15. <ul><li>Photos of Zumba </li></ul>
  16. 16. What is the future? <ul><li>Structural weakness </li></ul><ul><li>Exposure, but no loyalty </li></ul><ul><li>Less than 1/2 of business want to run another deal </li></ul>
  17. 17. Poised for collapse <ul><li>Over the next few years, it is likely that daily deal sites will have to settle for lower shares of revenues from businesses compared to their current levels, and it will be harder and more expensive for them to keep finding viable candidates to fill their pipelines of daily deals . </li></ul><ul><li>*Rice University Study </li></ul>
  18. 18. Over Saturation
  19. 19. Deals Go Round <ul><li>$577 million opportunity </li></ul><ul><li>Signal end is near? </li></ul>
  20. 20. Why do we care? <ul><li>Buy deals while you can </li></ul><ul><li>Don ’t buy Groupon stock </li></ul><ul><li>Help out small businesses - they need websites and social media campaigns too! </li></ul>

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