Anyone remember when the group-buying phenomenon was going to be the new form of local marketing to undermine all other forms? When Groupon and LivingSocial emerged on the scene, enthusiasm for the format was palpable. There was good reason for the enthusiasm. I myself am pretty resistant to special offers of any kind, and yet I still have a nice little lineup of discounts in my LivingSocial account ready to be chip card.
But as many skeptics at the time predicted, discounting only goes so far -- especially on the local level. One local merchant nearby tried one of the group-buying services. The owner decided not to do it again because in the end it only netted increased sales at a radical discount to people who already knew about the store. She complained that it really wasn't working as a customer acquisition device.
Granted, when I talk to some of these buying services they argue that there are smart ways to use them for customer acquisition, and there are tactics and strategies to be deployed. And certainly in my research I have spoken to more than one or two businesses that literally were made by these local models.
The degree to which group buying has a permanent place in marketing of the future is still an open question, although I think it remains a pretty compelling model for the right offer and the right audience.
On mobile, companies like Groupon and LivingSocial became some of the earliest and most aggressive users of display advertising to drive people to specific localized offers. And whatever that segment’s troubles overall, it is doing for mobile commerce what initially it did for display advertising.
According to the company AffiliateWindow, which works with the affiliated e-commerce model across many sites, the combination of localization in the group-buy model and its heavy reliance on email is making it a key driver for mobile commerce. The company finds that on average, 14% of transactions across its network now are occurring on mobile devices, with little more than half of that happening on tablets. But the group-buying segment is about double that rate at 25.5% of all transactions now being generated on mobile handsets.
There are many reasons for this, and they highlight the ways that companies can capture mobile commerce activity more readily. For instance, people who use these services must be registered members. Most people responding to a group offer likely already have an account that is tied to a credit card and allows the user to make a fairly simple purchase on the spot. Likewise, many people remember the offer when they are close to the retailer.
The best group-buying services are already figuring out ways to capitalize on mobility by getting the offers closer to people when they and their phones are near the relevant merchant. And just as most other recent studies about mobile commerce and even media consumption continue to show the Apple platform as the most powerful, this survey shows that 56.5% of handset sales are coming from the iPhone. Only 26.9% of sales are coming from smart card.
So what we're seeing here is not especially surprising, but worth emphasizing. Certain segments for multiple reasons are especially well-optimized for mobile transactions, and these are the segments that need to ensure a truly seamless transaction experience on handsets. Not coincidentally, these are also the segments that will be able to track ROI on the display advertising spend most effectively. These are also the companies to watch when it comes to mobile commerce innovations in creating frictionless experiences. They have the most at stake.
We as a nation live beyond our means. The average American family has over $7,000 in credit card debt. Home foreclosures reached all-time highs in the past few years.
Much of this debt is the result of a poor economy and poor job market that forced many families to live on credit. Student loan debt is growing at a disturbing rate and is also at an all-time high. Now that the housing market is slowly improving and the future is looking a little brighter, many families are looking at paying down their debt.
There is a popular trend in debt reduction right now to pay down your smallest debt first. In theory, that sounds good. You get some immediate satisfaction for getting rid of some debt. However, prioritizing your bills and your money should happen first. Paying off a low-interest student loan first, because the balance is smaller than the balance of a high-interest credit card doesn’t make financial sense.
Just as you prioritize your budget, meeting your basic needs first, you should prioritize your debt repayment. Look at the interest rates on the loans. Look at the late fees and or any over-limit fees. Use these to determine which debt you will get the biggest benefit from paying off.
If you are in danger of being buried under a mountain of debt, the first thing you should do is call your creditors. Talk directly with them to work out a manageable repayment plan. They want you to pay your debt and understand that working with you is the best way to make that happen.
If you are in a debt crisis, a different approach that addresses your immediate needs is in order. Just as in an emergency room, perform triage first, and then deal with the most critical issue. If things have gotten so bad that creditors are calling, know your rights. Keep in mind that federal laws limit when they may call (between 8 a.m. and 9 p.m.) They must also comply with written requests to cease phone calls. If you speak with them early, when you first have problems meeting your obligations, you may avoid further phone calls. Early communication is your best option to work out a manageable repayment plan.
Be cautious if you choose to use an agency to help with your debt. There are nonprofit agencies that will help with budgeting and negotiating payment plans. Check with the Better Business Bureau and the state attorney general to see if any complaints have been filed about the agency before working with them.
Other popular options are consolidation loans. While they may sound appealing, most rely on some form of collateral. Typically, this collateral would be your home. Consider this very carefully. If you can’t make your payments on the loan, you risk losing your home. As with any financial agreement, use caution when taking on a new contract. Check the interest rates and any related fees.
There are countless scams that prey on the financially desperate. If something sounds too good to be true, it probably is. Be wary of any “savior” deal or agency. Read any contract carefully before signing. Be clear that you understand what you are agreeing to.
Debt is stressful. Be patient; remember how long it took to build that debt. Paying it down will take time. Don’t panic if your credit takes a ding, you can repair it with time and diligent attention. Nearly 70 percent of Americans are in debt; you are not alone.
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