Why Every Brand Should Be Going Direct-To-Consumer (DTC)
Ecommerce deal a day business model
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2. Discover services/merchandise that they didn’t know of Access to new services/merchandise<br />smaller ‘side deals’ in addition to main deal<br />Deal personalization based on voluntary disclosure of preferences<br />Deals divided up by ZIP code<br />Customer demographics<br />Early adopters: Highly affluent with disposable income<br /> ‘ Urban females’<br /> 18-34 yrs<br /> Likely face book and Twitter users<br /> 60k-200k users/ city <br />100- 1000 users/deal/city<br />MERCHANT OBSERVATIONS<br />Deal sites proposition: Guaranteed revenue and large number of new customers. <br />Key Merchant Economics <br />Revenue: Typically retains 50% of the deal minus credit card fees<br />Redemption rate: ~80% <br />Incremental spending: Gap expectation that customers will spend more than just 500, likely upward of 750 to 1000 once in the store<br />Repeat customers: 22% repeat business<br />Best Suited Businesses<br />High fixed cost businesses<br />High customer acquisition cost<br />Business thriving on repeat customers.<br />Rice University study:<br />Successful businesses for which these business model is useful are: lifestyle businesses, e.g. spas (82% successful), sailing, restaurants (58% successful), education.<br />MERCHANT PERSPECTIVE ON CUSTOMER INTERACTION<br />Industry Analysis<br />Snapdeal.com Analysis<br />Deal revenue analysis of MyDala.com on 13 April 2011<br />Delhi deal: <br />Wear Your Attitude! Pay Rs 799 & get inked with a 9 sq inch tattoo worth Rs 9250 at RIP.<br />People bought =10<br />Revenue/deal=100<br />Net revenue= 1000<br />Chennai, Chandigarh, Pune<br />Pay Rs 39 for Rs 400 off on your purchase from HomeShop18. Shop Online from India's Largest Home Shopping Company featuring luxury brands at already discounted prices!<br />People bought = 328<br />Revenue/deal= 39<br />Net revenue= 12792<br />Hyderabad<br />Pay Rs 29 & get a flat 50% off on funky & stylish t-shirts at funktees. Wear your attitude with rocking and amazing tee shirts from funktees.com<br />People bought =90<br />Revenue/deal= 29<br />Net revenue= 2610<br />Kolkata<br />Rs 49 = Rs 300 off on your purchase at Lens Kart. Choose from varied brands on already discounted prices!!<br />People bought =11<br />Revenue/deal= 49<br />Net revenue= 539<br />Ahmadabad<br />Pay Rs 1649 for a stylish watch (black) from United Colors of Benetton worth Rs 2999 at Morgen Zein.<br />People bought =5<br />Revenue/deal= 165<br />Net revenue= 825<br />Mumbai<br />Pay Rs 199 for Rs 400 worth of delicious Kerala food at Malabar Koast. Savor the flavor of exotic Kerala in your city!<br />People bought =26<br />Revenue/deal= 39<br />Net revenue= 1014<br />Bangalore<br />Pay Rs 199 for Rs 400 worth of delicious Kerala food at Malabar Koast. Savor the flavor of exotic Kerala in your city!<br />People bought =41 bought<br />Revenue/deal= 25<br />Net revenue= 1025<br />Total revenue= RS. 20105 = $446<br />This revenue figure closely matches with the figures obtained from Freewebsitereport.org.<br />Top Online Shopping Sites- Nation Wide<br />Future technical improvements<br />The site can launch a mobile application available on Wap, Android, iPhone and Blackberry. It allows users to buy deals on their phones and retrieve them using the screen as a coupon. PAGE MERGEFORMAT 17 | Page<br />