Presentation on theme: "Groupon RMAS has run two regional Groupon promotions affecting 60 stores throughout the Front Range Area (Colorado Springs to Fort Collins). Please note."— Presentation transcript:
Groupon RMAS has run two regional Groupon promotions affecting 60 stores throughout the Front Range Area (Colorado Springs to Fort Collins). Please note we listed only locations, but consumers redeemed at 60 stores. For every $20 Groupon redeemed at an Ace store, RMAS rebated retailers back $15 per certificate based on store scans of assigned barcode. This promotion was funded with: $6.50-$7.50 in cash from Groupon – we received a 65% cash split from Groupon for our first Groupon, and a 75% split for our second one (both with 0% credit card fees). $8.50/$7.50 respectively in Matching Funds from Ace.
Groupon #1 Data Went on sale 4/6/11 at 12:00am 4,978 sold out by 9:30 am 4/7/11 Redemptions 4,177 redeemed (84%) Total dollars spent at retail: $159,642 Average transaction: $38.22 Total dollars spent above $20 Groupon: $76,102 Average transaction above $20 Groupon: $18.22 Groupon Bounce back coupon: 25 redeemed as of 6/1 Total retail dollars: $ Average transaction: $33.86
Went on sale 8/17/2011 Sold 3,750 by 2:00 pm 8/17/11 Redemptions 3,161 redeemed (85%) Total dollars spent at retail: $107,250 Average transaction: $33.93 Total dollars spent above $20 Groupon: $44,030 Average transaction above $20 Groupon: $ nd Groupons average transaction was down by 11% compared to first. Groupon #2 Data
Notes and Lessons Learned: Customers liked our Groupon. Many wrote to Groupon asking for more deals like Ace. This gives us leverage to negotiate with these companies. Since our deal sold out quickly, there was no reason to launch a Groupon in our busy season. We decided it is a better promotion to add to our mix during slow times. On a group level, we were unable to cross reference Groupon customers with Ace Rewards because Groupon will not release customers zip codes, which Ace Rewards needed to do so. Several retailers were able to cross reference at the store level, and approx 50% of Groupon customers were already Ace Rewards customers. We consider these promotions to be successful because if you evaluate them as a coupon, an 85% redemption rate is phenomenal. Customers seem to place more value on something that they pay for. Had we put a $10 off $20 coupon in the market for free (which is virtually what Groupon is to the consumer), it is highly unlikely we would receive this kind of ROI. Our retailers liked the promotion because of the rebate, and because it was guaranteed customers in their stores. There are so many daily deal companies to choose from. While they could very well be fad, this is a great way to get consumers into our stores during slow times. We are planning on running another promotion (with Living Social) in January of 2012.