PayTM deal on TimesDeal grabs 70,000 mobile recharge orders in a day
PayTM recently did a deal on TimesDeal site enabling users to pay just Rs 50 and get a mobile recharge voucher from Paytm, worth Rs 100. The duo earlier did a similar deal, last year which resulted in 50,000 orders in a day (read: What Happens When You Give Rs.100 For Rs.50? Impact Of TimesDeal On PayTM).
And the recent deal (on May 9, 2012) witnessed 70,000 orders in 1 day. As per the details shared with us – Timesdeal saw a huge traffic surge, with more than 3,00,000 unique visitors reported for that day (and the deal sold 70,000 orders in a single day, i.e. on May 9th).
The deal was not valid for existing PayTM accounts – which means, PayTM got atleast 70,000 new registrations (?). Assuming a loss of Rs. 60/deal (including the money PayTM paid to TimesDeal and Operators), what’s your take on the average customer transaction* acquisition cost?
Isn’t this a good deal for PayTM, given that they have focused heavily on UX, which hopefully will translate to repeat purchase?
*: We say it’s transaction acquisition cost (and not customer acquisition cost) owing to reasons mentioned in the earlier article: The Missing Piece Among Indian Ecommerce Players : C.R.M.