For Groupon, Resurgence Is In The Numbers
Even as investors interest in daily deals company has waned, the game is not over for Groupon and others in the deals space. After a calamitous 2012 , the company has bounced backed in 2013 thanks in part to a rise in the number of merchants offering longer-running, recurring campaigns instead of one-off deals, said Jim Moran, co-founder at Yipit, at Street Fight Summit in New York on Thursday.
“The big change we were concerned about was the extension of the lifetime of these offers,” said Moran. And that’s happening. Three quarters of the merchants that signed up to Groupon in June opted to extend their deal perpetually as part of a “deal marketplace” initiative launched late last year.
Total marketplace billings are up too, with nearly $150 million billings made per month. “There is some marketplace merchant churn, but Groupon continues to add more and more merchants,” Moran added.
As Groupon worked to reach out to consumers, focus on the past has been pushing deals through email. This year, data shows that deals converted over email only accounted for 40% of North American transactions. “It’s all about mobile and less about email push response,” said Moran.
Another positive for the daily deals company is the increase in marketplace deals growth. The number of deals in Groupon’s marketplace has increased from just under 45,000 to over 60,000 over the course of nine months, Moran presented.
Earlier this year, Moran told Street Fight that what has been the most surprising about the daily deals industry was that the vast majority of revenue is driven by repeat customers, both on the consumer and the merchant side.
Myriah Towner is an intern at Street Fight.
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