Yesterday the founders of Deal Current Network, Jimmy Hendricks and Patrick Dillon, spent 90-minutes teaching San Diego businesses owners how to market their business online. In attendance were media representatives from NBC 7 San Diego, San Diego Magazine, Fox 5 San Diego, Get1Free Magazine, Pacific Magazine, and San Diego Family Magazine. Small businesses owners like Laura from Pacific Nature Tours, Connie from Click Through Coupons, Tomio from AVI Technologies, Bonnie from Sanctuate, Michael from Infinity Financial Services, and Anthony from Aserenity Skin and Body were able to network with media representatives as well as gain valuable information for their business.
Hendricks, talked for about 40-minutes on simple website design and key SEO techniques get your website on the first page of Google. He also discussed, which social media profiles are a must, and how to trade your services with media groups for advertising.
“I came in here thinking I know a lot and I probably learned about eight new things I didn’t know. I highly recommend it, it was very organized, amazing presentations—these guys know what they’re talking about.” – Connie, CEO of Click Through Coupons and Marketing Director at FIT Athletic Club
Dillon, wrapped up the seminar talking about the San Diego daily deal and coupon space, how to make coupons work for your business, and performance based coupons versus flat rate coupons.
“Our business does a lot of daily deal marketing and to see all the different opportunities available in San Diego was very beneficial.” Laura, Pacific Nature Tours
“I was very excited about the digital coupon section because one of the things I found the digital coupon does is it gives you incredible track-ability and flexibility. You can see where your clients are coming from and make adjustments to the coupons that are not effective for you, opposed to print and other types of media.” Anthony, Aserenity Skin and Body
Overall, the morning was a success for both Deal Current Network and San Diego business owners. Take Back Local was able to gain valuable feedback to make the next seminar on 3/29 an even bigger success.
“I highly recommend this seminar to anybody who is a business owner or marketing person. They talk about different strategies that I think are useful and things that are up and coming that you should be aware of.” Steve, NBC 7 San Diego
For more information watch us on San Diego CW6 below or visit TakeBackLocal.com
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.
SignPost, Local Offer Network, Boomtime, Analog Analytics and Second Street Media now incorporate a range of local offer formats. These can include deals, coupons, gift certificates and contests. So is San Diego-based Deal Current, which is specifically focusing on coupons to move beyond deals: both traditional, flat rate coupons, and performance-based coupons.
While deals remain attractive for their games- like excitement – especially in high margin categories — coupons are preferable to deals in many instances. They don’t churn as much and aren’t as time pressured – coupon customers tend to stick with the channel for years on end, and tend to add to their budgets as results are proven. They also work everywhere, unlike mobile-limited channels such as Groupon Now; and they don’t require businesses to share revenue.
Deal Current’s innovation with coupons is offering a performance-based option. It enables publishers to work with advertisers with no upfront costs. As President Patrick Dillon notes, “It is like AdSense, but better because you don’t pre-fund the account.”
Dillon notes that a performance-based model incentivizes publishers to circulate the coupons around the Web with SEO and aggregators. A performance based coupon, in fact, might look and perform like a text ad, but will cost 40 percent less than comparable online ad choices.
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.