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Word-of-Mouth Key to Success of Daily Deals

August 2, 2012

Word-of-mouth is key to the success of daily deals: When making a daily deal purchase from a new or unfamiliar small business, fully one-half (50%) of consumers cite recommendations from friends or family as the factor most likely to influence their decision to purchase, according to a report by Constant Contact and Chadwick Martin Bailey.

Some 32% of surveyed consumers say they're more likely to purchase a deal if the group-buying provider is a national brand (e.g., Groupon, Living Social), whereas only 6% say recommendations via social media channels influence their group-buying decisions:

Below, other findings from the report titled "10 Quick Facts About Why and How Consumers Use Daily Deals," issued by Constant Contact and Chadwick Martin Bailey.

Personal endorsements drive deal purchases, particularly among women: 35% of women say they're more likely to buy a deal when it's recommended by someone they know, compared with 25% of men who say the same:

Most people who sign up to receive daily deals eventually buy something.

Among consumers who have subscribed to a daily deal service, nearly four in five (79%) have purchased a deal in the previous six months; among them, 27% have purchased five or more deals:

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