What’s in Your Deal Wallet?

WHAT'S IN YOUR DAILY DEAL WALLET? Chances are you've probably heard about daily deals before, and maybe have even bought a deal. Actually, if you've ever bought a daily deal from Groupon, chances are you've probably also bought from at least 2 other deal sites to have a total of 24 deals (and 9 are still active in your deal wallet). Here's a peek into what consumers are buying across multiple sites according to CityPockets user purchase data. Top 10 Providers by User Share Provider % of Users GROUPON Groupon livingsocial LivingSocial 88.2% 71% 62.3% Restaurant.com 23.8% RESTAURANT.COM EAT. DRINK. SAYI MONIT. 0000 BuyWithMe BuyWithMe 22.3% of LivingSocial users have also bought through Groupon. bloomspot Bloomspot 13.6% KGB Deals 13.5% deals eversave EverSave 9.1% I SHARE the SAVE TRAVELZO0 TravelZoo 7.7% I BlackBoardEats 7.4% I auvou EATS iI TIPPR Tippr 7.3% I 26 There are currently over 650 daily deal providers available to consumers million+ Estimated number of people who have ever bought a daily deal. in North America. Providers Vouchers More than half of all daily deal users have bought vouchers from three or more deal providers. 54% of daily deal buyers have bought 11 or more vouchers arcoss multiple sites in their lifetime. Users Providers Vouchers Users 48% 1-2 1-5 30% 38% 3-5 6-10 16% 12% 6-10 11-20 19% 11+ 21-50 23% 50+ 12% The average voucher saves its holder over of the price of the product or service. 50% CCC cSs (CSONCO $23.10 AverageVoucher Price ECSO $55.54 Average Voucher Value DEALS FOR HIM AND HER Women buy more vouchers from more daily deal sites than men on average. Here is a peek into what types of vouchers men and women are purchasing from across the different deal sites. Male Female 44% Active Users 56% 36% Voucher Share 64% Average Number 20 of Total Vouchers Bought 28 7 Average Number of Active Vouchers* |O Average Number of Providers Per User 4 *Active vouchers are those that haven't been redeemed or expired yet. Men buy 2x more laundry related vouchers. Women buy 30% more magazine subscriptions. Men buy 4x more Women buy 3x more children related vouchers flight lessons. (waterparks, kid products, etc). Men buy 4x more paintball vouchers. Women buy 2x more café or bakery vouchers than men. Men buy 30% more massage and tanning vouchers. Women buy 3x more yoga vouchers than men. Women buy 70% more salon, mani-pedi, waxing. skincare, and eyelash vouchers. Men tend to buy 20% more dental deals than women. Women buy 2x more acupuncture, colon, and vein treatment deals. The average daily deal user is between the ages of 25 & 44. Food and dining vouchers are the Both most popular among both genders and represent over 50% of total purchased vouchers in their CityPockets wallets. CASHING IT IN Vouchers are like a new form of "currency". You're pre-paying for a discounted service or product and redeeming it via paper or mobile app. However, this new form of currency has expiration dates. So if you don't use it, you lose it. Here are some redemption statistics from CityPockets users. SAVE Average time before expiration that voucher is redeemed. 3 months 7 months Average life of a voucher before it expires. Average Months Redeemed Before Expiration Category Months Activities & Adventures 3.6 Bars & Nightlife 1.7 Café 1.3 Entertainment vouchers like movie tickets are among the soonest to be redeemed since everybody loves a good movie at the theaters. Entertainment 6.9 Food 2.4 Gyms or Fitness Centers 1.2 Health & Beauty 3.5 Medical 3.9 Retail & Services 3.4 Travel 2.9 Vouchers for gyms or fitness centers are among those redeemed closest to their expiration dates. It makes sense that a buyer who isn't a regular gym-goer lacks the motivation to go until the very last minute. Price Months $0-$10 $11-$20 $21-$30 $31-$50 $51-$75 $76-$100 >$100 2.9 2.2 2.6 Food and cafe vouchers that are 3.4 bought for around $25 are often redeemed at the last minute. 3.4 4.4 The more expensive the voucher, the more incentive there is to cash it in before it expires. DAILY DEAL REMORSE Some daily deals that have been purchased tend to get lost in people's emails, and hence are easily forgotten. Some simply realize that they bought a deal on impulse and can't use it anymore. Secondary deal marketplaces such as CityPockets allow users to resell vouchers they can't use anymore to other users who might want it. $1.2 20% billion Total wasted value due to Average breakage rate (vouchers that expire before they are redeemed) forgotten and unredeemed vouchers so far. Reselling unused vouchers through a secondary marketplace gives users a chance to recoup their money and buy more vouchers in the future. How Much Can You Make (or Lose) From Reselling Daily Deals?! % of Deals Sold for Profit 25% % of Deals Sold that Broke Even 41% % of Deals Sold for Loss 34% The majority of users who $41 -$50 Max Profit from Deal resell their deals can either Max Loss from Deal make a profit or break even by selling a deal. What Type of Secondary Deals Get Resold on CityPockets* 11% Category Dining 6% 29% 29% Retail & Services 26% Entertainment 15% 7% 7% Beauty & Spa Cafe & Bakery 7% 15% 26% Travel 6% Other 11% CityPockets helps users access and keep track of daily deals from the top 30 daily deal sites, all on a single dashboard. Users are alerted of voucher expirations and can redeem deals on-the-go using the CityPockets mobile app. Users can also resell deals that they can't use or buy deals they missed in the CityPockets Secondary Deals Marketplace. The data presented is derived from CityPockets users, who tend to be slightly heavier daily deal users. CityPockets currently manages about 200,000 daily deals worth over $11M for its users. Infographics Presented by CityPockets See us on September 23, 2011 at the Daily Deal Summit Your Personal Daily Deal Wallet