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2011, Year of the Daily Deal

By Mercator Advisory Group
January 4, 2012
in Analysts Coverage
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Comments Pouring into the Fed Regarding Proposed Regulation II Clarification

Comments Pouring into the Fed Regarding Proposed Regulation II Clarification

An unshakable economic rough patch has increased consumer demand for discounted goods and services. The popularity of daily deal websites soared in 2011 as national sites such as Groupon, Living Social, and Google acquired many regional competitors.

The intersection of big data, discount buying, and new payment forms has the potential to disrupt some of the payments industry’s traditional business models. Payment service providers can take advantage of the brand loyalty that many retailers have already created. The most successful payment forms will leverage a consumer’s appetite for highly targeted promotions. The associated value proposition is frequently the factor that determines which payment option is on the top of a consumer’s wallet, and payment firms now have enough information to deliver increasingly relevant promotions and discounts that can potentially find favor with consumers. Each competing form of payment will have to secure partnerships with the retailers most valuable to their customers.

Read more at: http://www.dailydealmedia.com/2011-produced-a-new-kind-of-shopper-the-social-discounter642/

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