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Daily Deals Attract New Customers, Re-engage the Inactive

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Daily-deal offers may be an effective way to attract new customers and re-engage inactive ones, according to a new study by Foresee Results: Among surveyed consumers who had redeemed a daily-deal offer in the previous 90 days, nearly one-third (31%) said they were new customers and more than one-quarter (27%) said they were infrequent customers.

Nearly two in five consumers who had redeemed a daily-deal offer (38%) said they were frequent customers; 4% were former customers.

Below, other findings from Foresee Results' online survey of more than 22,000 visitors to the top 100 Websites (per Internet Retailer's Top 500 Guide) in February and March 2011.

With roughly twice as many subscribers, Groupon enjoys a wide lead over its closest competitor, Living Social.

Among visitors to the top 100 websites, nearly two-thirds (65%) say they are enrolled in at least one daily-deal program; among them, Groupon is the most popular with 51% enrollment, followed by Living Social (24%) and Google Offers (14%).


 


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Regardless of which site they use, however, nearly two-thirds of all daily-deal subscribers have purchased a deal. For example, 60% had purchased a product or service via Groupon in the previous 90 days and 60% had made purchases via Woot.

Moreover, 46% of daily-deal subscribers are enrolled in more than one service.

About the data:  Findings are from an online survey of more than 22,000 visitors to the top 100 Websites (per Internet Retailer's Top 500 Guide), conducted in February and March 2011.


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Comments

  • by @Monelman Mon Jun 27, 2011 via web

    Daily deals is an evolved customer behaviour that has migrated a significant bunch of offline backbenchers into online transacters. Its a great trend that can be customized geographically. However there are few questions:-
    Q1. Besides daily SMS / Emailer which can get annoying, is there a better medium to reinforce online offers?
    Q2. What product categories do better business online?

  • by SpencerBroome Mon Jun 27, 2011 via web

    But how many become return/loyal customers, without the deals? Isn't that you really want?

  • by Nick Stamoulis Mon Jun 27, 2011 via web

    @SpencerBroome makes a good point. Daily deals are a good way to get people through the front door, but not a guarantee you'll develop a new customer base. Business owners who think that a daily deal is going to just drop a slew of loyal customers into their lap are in for a big surprise.

  • by Dave Tue Jun 28, 2011 via web

    I've seen mixed reviews on whether the daily deal sites generate one-time deal seekers or long term customers... I have too assume more of the former, but I've used many Groupons and none of the merchants have attempted to retain me as a customer by collecting email, mobile number, offering another coupon, etc. That seems par for the course with most businesses even outside of Groupon, but if businesses are using Groupon as a means for new customer acquisition, then they should be even MORE focused on doing something to bring those customers back in. Very few business have a product/service that is so great that deal-seeking customers are anxious to come back at full price. Businesses need to make more of an effort to reap the benefits of their investment in Groupon advertising. I started LocalDealSites.com as a directory of daily deal sites.

    I have over 159 local deal sites and you can filter the list by city. http://www.localdealsites.com/

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