This article is the last in a 3-part series discussing NZ's top 3 daily deal sites. Part 2 was: NZ Daily Deal sites Marketing Strategies. Today we delve a bit deeper into the stats.
Its an interesting worldwide trend. Daily deals sites publicly show (brag) about their sales figures. What other industry puts their sales figures on their homepage! Technically though, the "dollars saved" figures are a marketing trick. Figures are displayed to show you how much a particular site is saving people. The more they are saving the public, the better they are.
For this article we will be treating "sales," and "dollars saved" as the same thing. A further explanation is under the table. We know from their publicly displayed sales figures, who the clear leaders in the NZ daily deal voucher market are, and their position.
Daily Deal Site Rankings based on Sales
||Total Sales since launch
||Average Value Saved
Stats current: 4/10/11
Note: The Sales figures above are not true sales. They are quoted as "dollars saved". Still, with sites generally offering a 50% discounts, we can guesstimate that dollars saved are pretty close to dollars sold. This article is not purported to be a techincal analysis, just a discussion article.
Perhaps even more interesting is the "Average Value Saved" Metric. GrabOne's average value saved is $46.75, TreatMe's is just $37.94. Interestingly Yazoom's average value saved is $66.00. Now again, these aren't technically sales figures, they are dollars saved. Still I think that this can give us some insight into things.
What could be the reason for Yazoom having a dollars saved figure more than 50% higher than their competitors? There could be several reasons.
Higher Ticket Prices (Higher Value Deals)
Yazoom have spend hundreds of thousands (likely millions) on expensive Prime Time TV advertising. The types of deals they let on to the site may tend to be higher ticket value deals. The higher the price of something, usually the more room there is for a discount.
Deals site work on commission, so the higher the price of the deal, the more commission they make. Yazoom need to pay for that advertising, so they simply favour higher priced deals, more premium offers.
On many deals sites, you'll see a $40 restaurant voucher for $20. That's $20 Saved. But lets take todays deal on Yazoom. $49 for TWO Mains, TWO glasses of Wine and Two Desserts. In fact thinking about it, this deal is pretty good! The RRP is $114, and its a fancy joint in Ponsonby so we'd expect that. So $114 - $49 = $65 Saved. That right there explains Yazooms $66.00 average value saved.
What this means, is that Yazoom may tend to have higher ticket prices on their deals. But when you pay more for the voucher, you get more savings on the deal. If you were going to buy two dinners anyway, so you end up saving big time.
So, don't take the "Average Value Saved" figures as one site being better than the other. Each deal offered is unique in its own right. Before you buy a deal make sure you read the small print!
This article ends The Big Guns series. We hope you've enjoyed it! Here are the articles:
Part 1 was: NZ Daily Deal Site Rankings
Part 2 was: NZ Daily Deal Sites Marketing Strategies
Part 3 was: Analysis of Sales Figures for Daily Deal Sites