Groupon Now deals failed to ignite consumer interest

GROUPON "GROUPON NOW" REVENUE GROWTH SLOWING DOWN MERCHANTS MAKE LESS MONEY on "GROUPON NOW" DEALS 60% GOES Participating Merchants Average Revenue Per Merchant Average Discount GEO-LOCO 40% 20% 1,151 $$$ $171 42% OFF • BUT WHY IS ADOPTION SO SLOW? 0% 1,211 $$$$$$$$$$ $22,722 57% OFF • -20% -40% June July August September REVENUE COMES MOSTLY from LOWER VALUE DEALS Groupon thought that its time-based, geo-targeted deals product "Groupon Now" was the future of commerce, offering nearby, targeted deals to people's mobile phones with the touch of a button. Our analysis of Groupon's sales data however tells a different story: for Groupon Now, revenue growth is cooling down, merchants are making far less money per deal than they do from regular web deals, and deal revenue is coming primarily from lower value product categories like food and beauty. REVENUE by CITY Restaurants Spa & Beauty Medical / Dental $8.4M $5.9M Average Price Per Deal $8 $19 $35 $61 $61 $211 $3.3M 40% 24% .5% $114K $114K $114K CHI |$114K $74K 22% $8.4M 25% $8.4M 12% $8.4M NYC 4% 38% $85K 41% $85K $85K LA CHI $37K 20% $5.3M 22% $5.3M 14% $5.3M $5.3M $45K SF DC 34% 43% $74K .5% $74K $5.9M $74K NYC 15% 35% $5.9M 12% $5.9M $85K $4.6M GROUPON 41% $37K 34% $37K 4% $37K SF LA 13% $3.3M 20% $3.3M 22% $3.3M GROUPON NOW 52% $45K 30% $45K 1% $45K DC * September 2011 12% $4.6M 17% $4.6M 9% $4.6M beyond GEO LOCO EASY Purchase Decision MEDIUM Purchase Decision DIFFICULT Purchase Decision DATA CONFERENCE 2011 BYND.COM % of Revenue శ్రీ క్షక్లి కి క్షీ క్రీ Growth Rate