Quick Guide on Deal Industry

FUTURE OF DEAL INDUSTRYHuge opportunities in the deal industry have been attracting a lot of players; this has given rise to several innovative methods to stay ahead in the game. Being in the industry from its inception, we have witnessed what leads to the rise and fall of players. The objective of this guide is to keep you updated and give a brief guidance about the industry which will help you succeed.

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Group Buying Giving Way to Product Deal SitesAll leading players, including Groupon, is shifting its focus from group buying to product deals due to the diminishing demand of these deals among merchants and customers. These sites have identi�ed growth as e-commerce companies, which sell products at a discounted price.

Focusing on a group of customers helpsCompanies like Zulily, Fab and so on has already proven that focusing all your e�orts in a particular customer segment will help you know and serve that segment a lot better than others. Being focused will earn you loyal customers and increase repeated sales and with a little bit of creativity, loyalty programs and so on, you can increase the cost to enter your market.

Customer retention is the keyCustomer retention is vital for the deal sites and merchants alike, research says that 58% of the merchants run deals to earn more customers, but once they earn customers can you site help to retain them? Traditional deal sites never did so, which resulted in merchants turning away from deal sites later on. The strategies formulated by deal sites should also include plans to help merchants retain good customers else they will end up having a group of bounty hunters as customers who are never loyal and pro�table to maintain.

Change from 'Push to Pull' business modelEarlier the deal provider’s strategy was to �ood customers with deals they might like to avail through mails and other sources, this business model is depleting due to several reasons like mail �lters, customers losing interest and abandoning deals after purchasing them and so on. The companies are now applying the "Pull" business model in which the companies want customers to search for deals when they are in need to purchase a product or service.

How deal Industry is evolving

It’s not just commerce, its engagement through entertainmentResearches prove that majority of the subscribers visits the site for learning about new products. The websites have now become a new place for window shopping, so �ll the site with exciting new products and services that will entertain your customers and thereby increase their engagement which will tempt them to check your site and messages more often.

Speed mattersWhen you are in an industry where every one wants to capitalize on the new opportunities, how fast you can implement becomes a big concern. The strategies you formulate, business models and the technology you use should be �exible enough to provide you the freedom to implement any change in the fastest way possible.

Know the deals you are sellingGroupon once sold deals for a medical test without knowing the fact that it is not applicable for all the users. Some of the subscribers who didn’t qualify for the test went to the lab just to know that they can’t have that test. These kind of circumstances will not just earn you bad customer reviews but also reputation of being a money making machine turning things worse in the long run.

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PersonalizePersonalization is quickly becoming the USP of certain industry leaders. Customers no longer want to �nd products by themselves; they are expecting the website to show them products that they want and sometime even surprise them. With quality analytics and personalization tools, you can increase customer engagement and encourage repeat visits.

Channel Strategy98 % of deal subscribers own a mobile phone and 68% of subscribers are in�uenced by social media for buying a deal. These �gures imply the need to have a mobile and social media strategy as part of your overall channel strategy. Mobile apps and social media solutions are largely becoming an inevitable part of a deal sites success.

How being Omni channel helpsStatistics on the devices owned by daily deal users (apart from a computer in 2012) indicates the importance of being present in multiple devices. Its vital that you create a delightful experience for your customers in every interaction using these devices.

*Statistics of devices owned by daily deal users in US. Courtesy: Edison Research

APPLE IPOD

ANDROID CELL PHONE

APPLE IPHONE

ANDROID TABLET

46%

32%

33%

28%

25%

12%

APPLE IPAD

PORTABLE HAND-HELD BOOK READERS

How Omni Channel Works

Maintaining single customer record across channelsHaving a central customer record will give you a holistic view of the entire activity of customers through every touch point.

Responsive designWith more and more devices arriving in the market having a design capable of adapting to various screen sizes is essential.

Innovative POS systemsProvide merchants with POS systems that will help them and yourself track the e�ectiveness of deals real-time.

Real-time inventory visibility across multiple locationsO�ering certain deals (like for stock clearance) across multiple channels and locations will require real-time inventory management to monitor the whole process and help in decision making.

Content strategy for each channelSince the behaviour of customers using each channel is di�erent you will need to have multiple contents strategy for di�er devices to increase customer engagement.

BUY ONLINE REDEEM IN STORE

MULTI DEVICES & TOUCH POINT

SOCIAL MEDIA

CRM

POS

MERCHANDISING

SALES TEAM MANAGEMENT

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How often do you use social networkingwebsites or services

Know your Customers

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22%

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of mobile app downloaders have used deal websites app and 54% of smartphone owners claim to use their mobile handsets frequently while shopping

- Nelson Survey

87%

Customer choices of deals

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$10,000

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*Courtesy: yipitdata.com

Get Oorjit advantage Disadvantage of traditional and SaaS deal PlatformsMalleable Framework to dodge challenges

User base building tools

Ecommerce adaptability for product deals

Personalization features to increase customer engagement

Faster deployment

Higher customer retention by creating exit barriers

Increase merchant pro�tability through Merchant Empowerment Tools

Easy migration from other platforms

launch campaign tools

POS systems*

‘Oorjit Go’ for location based deals thereby reducing mail dependency

4 years of Industry expertise

Lack of Industry expertise

Absence of resourceful team to guide through the process

Rigid frameworks which hinder future growth

Slow deployment in case of customization

High switching costs due to absence of migration tools from other platforms.

Unsatis�ed merchants due to less control over the process

Di�culty in implementing product deals

Security and scalability issues with SaaS platforms

*WIP

Thank You

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World’s No:1 Deal Solution