Posted by Mark J. Miller on October 12, 2011 11:59 AM
A new study out of the Harvard Business School finds that restaurants reviewed on the site can count on higher business. Even a one-star increase on Yelp's five-star ratings scale, according to WSJ.com, "was associated with a 5 to 9% increase in revenue."
The research comes as businesses, especially small businesses, are pondering the benefits of participating in group-buying deals such as Groupon or LivingSocial. They offer not just good deals but new experiences is possibly new parts of your city that haven’t been fully explored. That’s all well and good for the consumer. But for the businesses offering the deal, it might mean eventual bad news.Continue reading...
Posted by Mark J. Miller on September 30, 2011 01:16 PM
There's never a dull moment at Groupon HQ in Chicago. Besides the rampant speculation about what's happening with its IPO, this week the daily deals site quietly launched Groupon Goods.
According to CNN and the site's FAQ, Groupon Goods marks an expansion from service-industry offers to "really good deals on great products. To get airspace on Groupon Goods, a product has to be cool enough to share and innovative enough to inspire. It also must be made of reliably bonded molecules and stardust. Honestly, if we think a product is remarkable and we can offer a good deal on it, we'll do so."
As for its closely-watched IPO plans, Groupon filed the papers to go public in June. Since then, though, the company that thrills bargain hunters (and fills the inboxes of others, to the tune of five billion email messages per month) with its daily-deal emails touting everything from pizza joints to spa facials has had a run of bad news that has pushed its planned IPO back.Continue reading...
let's make a deal
Posted by Sheila Shayon on September 15, 2011 12:11 PM
The scoop by the New York Times that Groupon's IPO appears to be back on track puts the boom in branded daily deals back in the spotlight.
With Google, Amazon and other web giants muscling into their spice, sites like Groupon and LivingSocial are disintermediating the e-commerce industry with discounting as high as 60% — not to mention filling our email inboxes with a flood of local deals.
Participating in such offers can be costly for merchants, who reportedly fork over about 50% of sales revenue back to Groupon, banking on the reward of repeat business from new customers accruing long term growth.
As the daddy of daily deals ascends the slippery slope of an IPO, a new academic study has unearthed a controversial and ironic twist for daily deals site Groupon: being one of their deals has a negative effect on brand reputation as measured by Yelp’s metrics.Continue reading...
Posted by Shirley Brady on September 13, 2011 07:02 PM
BMW, Audi, Mercedes-Benz and Porsche hit Frankfurt Auto Show with luxury cars retooled for younger generation, while Maserati brings Jeep-based SUV to Frankfurt.
ConAgra sets deadline for Ralcorp.
Cracker Barrel's new CEO outlines her plan amidst shareholder battle.
Dr. Oz shakes apple juice industry to the core.
eBay hit by criminal probe over use of Craigslist information.
Heineken-sponsored private concert in Brooklyn by Kanye West released by Vevo.
Ikea dispels death of Billy (bookcase) rumors.
KFC Australia pulls campaign claiming free range chickens.
Lady Gaga releases second in series of "fashion films" on YouTube.Continue reading...
social media watch
Posted by Sheila Shayon on September 1, 2011 04:56 PM
Turns out the burgeoning but increasingly complex world of daily deals requires outsized margins that have afforded founder companies Groupon and LivingSocial their success.
Robust local sales efforts are de rigueur to generate enough deal “inventory” to make the consumer proposition viable in a U.S. market worth at minimum $3 billion, according to Opus Research projections — and Facebook, for one, isn't ready to make that kind of commitment.
The social network is checking out of the daily deals business it launched in April in Atlanta, Austin, Dallas, San Diego and San Francisco. "After testing Deals for four months, we've decided to end our Deals product in the coming weeks. We think there is a lot of power in a social approach to driving people into local businesses. We've learned a lot from our test and we'll continue to evaluate how to best serve local businesses," said a Facebook statement.Continue reading...
Posted by Shirley Brady on July 28, 2011 06:00 PM
Goldman, Citigroup bond sale spiked by S&P while JPMorgan Chase's Jamie Dimon and other Wall Street CEOs pressure politicians to stopstalling on a debt ceiling deal.
Amazon cuts movie streaming deal with NBCUniversal's Universal Studios.
Facebook sues 25 online "typosquatters."
Google challenged on AdMeld acquisition by DOJ, while Senate schedules antitrust hearing.
Google Maps heads to the London Underground.
H&M signs David Beckham to create underwear "bodywear" collection.
Marvel wins suit brought by artist Jack Kirby's heirs.
Motorola Mobility beats Wall Street estimates.
Twitter pushes promoted tweets to top of users' timelines.
Yelp hires IPO-savvy CFO.
Posted by Sheila Shayon on June 3, 2011 11:30 AM
Small business has been feeding the daily deal industry, routinely assuming 75% of a deal’s cost and often with little or no repeat business. The draw for SMB’s to behemoths like Groupon is the reach: 60 million users and 500 markets.
Smaller merchants are becoming savvier in the deals they are making with the big guys like Groupon, LivingSocial, and web mainstays like Facebook, Yelp, Travelzoo, OpenTable who are all adding Groupon-like features — all the while being "bombarded" by a growing array of smaller wannabes, and contemplating what they can do without a middleman.Continue reading...
Posted by Sheila Shayon on March 28, 2011 05:00 PM
That Dora-esque complaint could be the battle cry from merchants fed up with paying a substantial fee to the credit card companies in return for carrying their card-swiping and transactional business.
The mobile payments market could reach $618 billion by 2016, according to consulting firm Edgar, Dunn & Co., and the battle is heating up.
Google has partnered with MasterCard and Citigroup to have the Nexus S Android smartphone, developed with Samsung, embedded with near-field communication (NFC) technology to enable purchases with a wave of the device across readers at the point-of-sale or check-out.
It’s the next territorial imperative for m-commerce as the financial-services, technology and telecom industries craft strategies and devices to get more of consumer spending via smartphones which are virtually transforming into electronic wallets.Continue reading...