There’s a ton of buzz about what’s going on in the deal site space right now. In short, Groupon now must show their financials in order to go public.
Groupon confirmed its plans to go public this month, raising an estimated $750m on the US stock markets at a price that could value it at potentially over $20bn, according to analysts. The company will become the latest social media firm to go public, adding to a highly competitive new technology market.
Consumers and merchants alike see the benefit to offering on-going or daily deals. Studies are proving that the lasting effects include customer loyalty, customer retention, and new customer acquisition. Daily deals and on-going deals also prove to be a better method of managing marketing in a digital market and allowing merchants to give the customer the deals they desire through on-going communication. Analytics built into online coupons and mobile coupons also offer result tracking like never before.
The companies that are set to take advantage of this new market place are those that have a model built for sustainability. In short – the Groupon sales/employee weight and the national marketing expense coupled with the end user acquisition cost is heavy. Compared with the Forkfly model, which is light, nimble and based heavily on merchant to customer communication and retention.
As Local Media Insider Alisa Cromer writes, “Don’t cede your DMA to GrouponNow (or GoogleOffers) in the locational deal store/coupon space. The locational coupon and certificate store space is still up for grabs. Forkfly, can, at least conceivably, be launched in 30 days, because most of the technology is already built. It also has a nascent national network, which is better than launching alone.”
From 2006 to 2009, the proportion of digital coupons among all coupons redeemed increased from 1% to 10%, while newspaper coupons fell from 63% to 50%, according to data from NCH Marketing Services. With digital coupons on the rise, customers are looking for a fully integrated digital solution, and who better to offer them that than the publishers.
While Forkfly is not a daily deal centered business (Only 7% of our revenue) we have put the time and attention to build a platform that utilizes the relations of the publisher/media companies. Forkfly utilizes the wholesale platform, merchant to customer communications and retention in real time, and hundreds of free and every day deals for end users.
The frequency of more and more people buying and using Smart Phones means more people are consistently “plugged in” and the success of daily and on-going deal platforms is sure to only increase. The real question for merchants and publishers is not if you’ll sign on, but when and with whom.
















