2. Group Buying Melissa de Andrade @MelissadAndrade The Daily Deal Phenomenon Check my Social Media blog: melissadeandrade.com

3. What is a Daily Deal website? Sales tactic that uses collective buying power to offer limited time discounts that are valid only once a certain number of vouchers are sold Voucher Price | Discount | How many bought | Time left | Rules | ** The more customers engage their friends, the more benefits they get (including free vouchers or even more reduced prices) melissadeandrade.com

4. INDUSTRY Oversaturated The daily deal aggregator Yipit now sifts through 30,000 deals a month from some 650+ daily deal sites Group buying is a strong business But... MERCHANTS Not always profitable 56% of businesses made money from daily deal promotions, while the rest either lost money (27%) or broke even (18%) CUSTOMERS May be suffering from daily deal overkill, Groupon remorse or daily deal regret melissadeandrade.com

5. If group buying is oversaturated, how to differentiate? melissadeandrade.com

6. Personalization is the key! melissadeandrade.com

8. Focused on small, good brands for moms -$150 million in revenue expected this year -4 million members and 40,000 units sold from 700 different items a day melissadeandrade.com

9. Focused on deals for men - Bring relevant deals to subscribers - Bring audience that’s relevant to merchants melissadeandrade.com

10. What about the merchant? melissadeandrade.com

11. Not Always Profitable for Merchants 75% off deal on a dozen cupcakes Expected a few hundred orders 8,500 people took the deal They lost thousands of dollars Each sale meant a $4.50 loss They had to pay $19,000 for extra staff and shipping charges for the 102,000 cupcakes. melissadeandrade.com

12. If group buying is not for every business, how should one know ? melissadeandrade.com

13. Group buying brings:  Big advertising boost  Increase visibility  Exposure to many new customers  A way to test a new product or service  Extra inventory can be moved quickly. Some hints to consider Group buying can be part of your marketing strategy but it should not be ALL your marketing strategy melissadeandrade.com

14. Enhancing Groupon experience for the merchant ChallengesRecommendations Groupon does not build loyalty Build loyalty yourself! - Build a unique experience for Groupon people - Use social! Motivate them to follow you on Twitter or like you on Facebook for further promotions - Use social! Ensure they provide positive feedback on social media tools. Group buying is a tremendous opportunity for positive ratings Groupon buyers are bargain shoppers Offer you own discounts! - Have an additional product with special price for Groupon people - Offer 50% off to bring in someone new (who will pay either full price or a slightly reduced price) Groupon does not make financial sense Evaluate and negotiate! - Think: Is Groupon for your business? - If so, use marketing budget to invest in group buying - Push daily deal services to accept a smaller cut of voucher sales - Shorten the redemption period, so that the business can plan carefully for the rush of new customers - Offer loyalty programs via text message, email, Twitter, Facebook melissadeandrade.com

15. Voucher Price | Discount | How many bought | Time left | Rules Promote Deals yourself! melissadeandrade.com

16. References Group Buying White Paper - Harvard Business Schools http://www.slideshare.net/HackStartups/group- buying-white-paper http://www.slideshare.net/HackStartups/group- buying-white-paper Considering Offering a Groupon? Read This First. http://socialmediatoday.com/jgibbard/337550/co nsidering-offering-groupon-read-first Group Buying: Key To Your Business's Social Media Strategy http://socialmediatoday.com/jgibbard/337550/co nsidering-offering-groupon-read-first http://www.huffingtonpost.com/robert- ball/group-buying-is-key-to-yo_b_802560.html http://www.huffingtonpost.com/robert- ball/group-buying-is-key-to-yo_b_802560.html Beyond Groupon: Daily Deals Evolve, New Competitors Emerge http://www.huffingtonpost.com/2011/11/23/gro upon-daily-deals_n_1088436.html http://www.huffingtonpost.com/2011/11/23/gro upon-daily-deals_n_1088436.html Group Buying Versus Traditional Lead Generation http://www.huffingtonpost.com/robert- ball/group-buying-versus-tradi_b_813552.html http://www.huffingtonpost.com/robert- ball/group-buying-versus-tradi_b_813552.html Retail Software: Your Groupon Advisor http://blog.softwareadvice.com/articles/retail/ret ail-software-your-groupon-advisor-1072911/ http://blog.softwareadvice.com/articles/retail/ret ail-software-your-groupon-advisor-1072911/ Pros and cons going Groupon http://socialmediatoday.com/caroline- jorgensen/379110/pros-and-cons-going-groupon http://socialmediatoday.com/caroline- jorgensen/379110/pros-and-cons-going-groupon Groupon: winner or goat http://socialmediatoday.com/drewmclellan/2638 68/groupon-winner-or-goat Google Offers vs Groupon vs Facebook Deals http://socialmediatoday.com/drewmclellan/2638 68/groupon-winner-or-goat http://www.digitaltrends.com/social- media/google-offers-vs-groupon-vs-facebook- deals/ Will Groupon really boost your local business http://www.socialmediaexaminer.com/will- groupon-really-boost-your-local-business/ http://www.socialmediaexaminer.com/will- groupon-really-boost-your-local-business/ Group buying local business http://mashable.com/2011/01/20/group-buying- local-business http://mashable.com/2011/01/20/group-buying- local-business How daily deals are losing their allure for business and consumers alike http://moneyland.time.com/2011/08/30/how- daily-deals-are-losing-their-allure-for-businesses- and-consumers-alike http://moneyland.time.com/2011/08/30/how- daily-deals-are-losing-their-allure-for-businesses- and-consumers-alike melissadeandrade.com