LivingSocial-Pizza Hut deal sees 163,093 pizzas sold in a week – ‘biggest group buying deal yet’
LivingSocial is claiming the biggest group buying deal in Australia yet through a tie-up with Pizza Hut – bettering Scoopon’s deal with Hungry Jack’s two months ago.
The deal saw 163,093 $2 seven-inch Pizza Mias sold in a week on LivingSocial Australia’s website.
The Hungry Jack’s deal offered Scoopon’s 2m subscribers a $2 Whopper and fries meal deal through its coupon deal.
However, LivingSocial claims its Pizza Mia deal outdoes the Scoopon Hungry Jack’s offer, since its own deal required consumers to commit to the offer in advance, not just download a coupon with the option not to redeem it.
163,093 pizzas sold? No, 163,093 coupons sold – with the average “breakage” rate for group buying deals sitting at about 30% that’s still pretty good. However, the lower the value of the “product” the higher the breakage.
Let’s challenge both Scoopon/HJ’s and Living Social/PH to declare the redemption numbers!
btw, can KFC do one too please?
The living social deal wasn’t any good, when you take into account the $8 delivery charge, you hardly make a saving. Scoopon sold 650,000. Regardless of what this character thinks, that’s still a shortfall of nearly half a million vouchers sold.
Why is it I only ever get deals for facials or spa treatments on these….
Why on earth would you bother with Pizza Hut or Domino’s, unless your local Italian wood fired pizza take way was shut and you were stoned and starving late at night or a skint student? Why oh why would you do it? Oh, I think I have just answered the question?
Jim, you’re assuming the breakage stays the same on a free coupon vs a paid for one. The average coupon sells for approx. $35 and 30% of purchasers still leave it sitting by the printer! Logic would suggest a totally free coupon will have a much lower redemption rate. I’m not poo pooing it, just questioning the what success looks like.
What chance have PH got of increasing market share and profits long term by conducting such a deal? Reeks of desperation.. RIP Pizza Hut
Don’t think all the Pizza Hut stores knew about or supported this deal. Our Hobart store owner was not supportive and knew nothing about it. Was kind enough to honored the deal. But beware!
This is a brilliant outcome for Pizza Hut. Why all the negative comments? Tall Pizza Syndrome?
Soo much negativity!!
Yes, Pizza Hut pizzas are pretty bad, and will this deal mean they suddenly have vast numbers of new customers who taste the $2 offering and keep buying?Probably not.
But what will have happened is that not only will people get their $2 pizza, they will then be upsold on things like soft drinks etc so this is a win for Pizza Hut.
Also, lets not forget that a certain number of the 163K sign ups will be new customers for living Social so they also do well on the data front.
Lets see this positive here guys….its a win for both Pizza Hut and living Social. Also we get cheap (if not great) pizza. Who loses?
Breaking news.
Pizza Hut offers Pizza for $2
Sells lots of pizzas.
Living Social helping keep Australia healthy.
Love it Gina.
I bet many companies could generate the sales themselves, via Facebook and Twitter if they offered such a discount…
Any stats surrounding a brand’s own social platform generating such reach for a similar discount..?
I’ve noticed a close correlation recently between companies doing a daily deal and companies going bust, usually about a month after their deal.
I hope Pizza Hut is ok.
$2 for a Pizza, I’d pay that for the novelty
Deal of the Day sites aren’t a sustainable model… Doesn’t work long term. For the client, they can’t offer this deal again or at least not for a long time. Same goes for any other business.
I heard Hungry Jack’s had revenue of over $500,000.00, an up-sell rate of 38% and sold over 250,000 Whoppers. That was done in 48 hours, so, Pizza Hut’s efforts didn’t touch Scoopon and Hungry Jack’s.
I bought this deal. Only used once then the rest, unable to use it. Called Pizza hut then they said they cannot cope with the demand so those vouchers will never work anymore. They give living social phone number as they are unable to help. I think Pizza Hut just want to get customer to sign up their mailing list.