Yesterday, San Diego Living’s Lynda Martin interviewed Jimmy Hendricks, the CEO of Take Back Local and Deal Current Network. Organized by Deal Current Network, Take Back Local is a grassroots outreach program, teaching small business owners how to profit from online advertising. The business is hosting three free seminars at the One America Plaza from 9-11am on:
Co-Founder and CEO of Deal Current Network, Jimmy Hendricks will show attendees how to leverage loyalty programs, trade for advertising, and the San Diego Coupon Network for their business. Attendees will walk away with clear actions and tracking methods to take their business to the next level. The program is partnered with NBC7 San Diego, Get1Free, San Diego Magazine, San Diego 6 CW, and over a half dozen other publishers.
The last 12 months have been some of the most volatile times in the daily deals space. In 2010, Forbes hailed Groupon as the fastest growing company ever. Two years later, at a $3.6 billion valuation, it’s half the value of what Google was willing to pay for it before it went public. Now, some critics, Forbes included, are calling for Andrew Mason to be removed or step down as CEO.
Groupon’s struggles aren’t isolated. Living Social has struggled to attain profitability and in November slashed 400 jobs trying to do so. There’s even been a shakeout with the white label daily deal software providers, the vendors that help media and others develop the long tail of the deal industry. Two years ago, there were 15-20 providers, including most notably Analog Analytics, Deal Current Network, Deal Pigg, Group Commerce, Nimble Commerce, and Tippr, providing software to local TV, Radio, and Newspaper groups in the daily deal space. At the end of 2012, there were only a couple top providers operating profitably and gaining market share. The rest have closed down, stopped accepting new clients, or diverted resources to new projects.
However, merchants are still in search for a low-cost way to reward regular customers for their purchases. So what should publishers and merchants be focused on in 2013?
1. Marketing fewer deals with higher quality. Daily deals continue to work for some, but not all merchants. In one sample of a major TV deal program in San Diego, 43 percent of the total annual deal sales came from just 25 deals, or about one tenth of the total deals ran that year by that publisher. Deal programs should focus on working with the right type of merchants, not all merchants.
2. Picking the right loyalty program. Many companies are trying to figure out what’s next after an initial new customer is introduced to a local business. Older organizations in this space like Rewards Network/iDine, are seeing a new wave of competitors with some major venture backing. Companies like Belly, Mogl, andLevel Up are putting a heavier focus on making things fun and easy for consumers and simple for merchants to track. The trick that loyalty concepts will need to prove is that their programs bring in new incremental business, not just deal seekers, and are not just garnishing a percentage of revenue from existing customers.
3. Trading advertising for services and products. The daily deal industry started long before Groupon, but back in the 90’s and early 2000s it was a booming trade business. Merchants would trade their products and services for a no-cash required media trade. For example, Jim gives his local radio station fifty $100 gift cards in exchange for $5,000 in advertising credit on air. The radio station turns around and sells those gift cards at a discount and recoups the free air time given. It’s a win-win for everybody (merchant, radio station, and consumer who gets a great discount.) This brings more perceived value to the local merchant because Jim now gets an email blast and $5k in air time.
4. Competing with banks? How financial institutions affect the local offer market will be seen in 2013. Last June the daily deal white label Analog Analytics was purchased by Barclays Group, and JP Morgan Chase just announced the acquisition of Bloomspot. Other financial institutions are sure to follow. These organizations see this as a consumer benefit and won’t need to be profitable as a stand-alone business. Some banks, like Bank of America with their AmeriDeals program are starting to go after this market on their own.
5. Investing in digital coupons. Google Adwords and Facebook’s advertising platforms work great for the large and savvy merchant. Local merchants are still in search of an advertising outlet that costs nothing upfront and only costs money when customers take action. Coupons.com, Coupon Cabin, and Retail Me Not have proven that performance based digital coupons work at the national level and Emarketer reported that 92.5 million people redeemed a digital coupon in 2013. We expect local merchants will start searching and requesting a similar marketing channel in 2013 and beyond.
We are happy to announce that the San Diego Business Journal released their 2012 Most Admired CEO nominations today and Jimmy Hendricks was recognized for the third year in a row.
Jimmy was nominated in 2010 and was awarded Most Admired Small Business CEO in 2011. We are excited for the continued recognition in San Diego.
For more information or to register for the event, see below:
Location: Paradise Point Resort & Spa, 1404 Vacation Road, San Diego, CA 92109
Time: 4:00 p.m.-7:00 p.m.
Food & Beverage: Heavy appetizers and cash bar.
Estimated Attendance: 650
This event recognizes local industry leader’s great achievement within their companies and in the community. The winners and finalists are lauded for demonstrating determination and insight yielding huge successes for their organizations. These executive have taken the lead in driving their businesses and the local economy. The San Diego Business Journal honors these CEOs by hosting an exclusive reception and awards program to honor the winners, finalists and guests.
Deadline: Thursday, October 25, 2012
Criteria: Must be located in San Diego County
Judging: An independent panel of judges selects the winners
$60/individual and $500 for a group of 10
Ticket price includes: 26-week subscription to the San Diego Business Journal ($15 allocated to the subscription). Current subscribers may gift the 26-week subscription to a colleague.
We are excited to see Deal Current client’s growing their program and making strong affiliate relationships.
Deal Me in Today in La Jolla announced their partnership with San Diego Community News Group last week.
Here are the details and you can read the original article here.
San Diego Community Newspaper Group (SDCNG), publisher of La Jolla Village News, Beach & Bay Press and Peninsula Beacon, announced it will offer great deals in San Diego’s coastal communities thanks to a recently established partnership with Deal Me In Today, an Internet-based platform that dishes out daily deals from local businesses to area residents.
“I’m thrilled to be partnering with Deal Me In Today’s owners, Debbie Arnau and husband Michael,” said SDCNG publisher Julie Hoisington. “Providing this free service to our clients, on average four times per year, complements what our community newspapers have done best for years — reaching the local residents.”
In addition to providing weekly print advertising opportunities for local businesses, SDCNG now also offers a daily deal package to bring business’ marketing campaigns full circle.
“We’re very proud of our readership audit reports, which have shown a 94 percent average receivership and readership in the communities we serve. Those are tremendous odds for a business advertisement to be seen and read,” Hoisington said, calling community newspapers the “backbone of marketing.” “It’s the engine that drives readers to business websites for deals and blogs.”
Readers, too, will enjoy added benefits by checking out their local news website, www.sdnews.com, or picking up the local community newspaper to take advantage of the best deals around town.
Deal seekers will no longer get flooded with junk emails just to find one in their neighborhood, since all Deal Me In Today deals are located within a three- to 10-mile radius of where the customer lives, works or plays.
“We believe that the future ongoing success of this industry will revolve around community-based daily deals that support local businesses and are close to home,” said Debbie Arnau. “Our focus on a community approach is to provide consumers with unbeatable deals from nearby merchants and to provide the same merchants with long-term loyal customers.”
After just one year, Arnau already has her sights set on expanding her unique business model into more of San Diego’s communities.
“As we begin our launch of Deal Me In Today to San Diego’s coastal communities including La Jolla, Pacific Beach, Mission Bay, Point Loma and Ocean Beach, we see no better way than to partner with San Diego Community Newspaper Group,” she said. “Plain and simple. It’s the community focus. … It’s a win-win for both the business and the consumer.”
Check out a preview of all the great things that come from choosing Deal Current as your platform of choice.