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And the daily deal site debate continues. Among so many conflicting opinions about whether involvement in daily deal sites is worth it for businesses, yesterday eMarketer featured new data from five different sources that still doesn't make a clear case for daily deal sites either way.
12 Interesting Statistics From Daily Deal Studies:
Source: Merchantcircle Survey, June 2011
- 58% of businesses cited customer acquisition as the top reason for liking daily deals.
- 42.4% of businesses cited ineffective customer acquisition as the primary reason for not offering a daily deal again.
Source: ForeSee Results Survey, March 2011
- 38% of daily deal buyers said they were already loyal to the business offering a deal.
- 31% of daily deal buyers said they were new customers
- 27% of daily deal buyers were swayed by a discount after having either visited only sporadically or had stopped patronizing the establishment altogether.
Source: Rice University Survey, June 2011
- 77% of deal buyers for Groupon, LivingSocial, Travelzoo, and BuyWithMe were new customers, all spent more than the deal's value, and an average of 20% of these new customers became repeat customers.
- 48.1% of businesses said they would offer another daily deal, while a third were uncertain.
Source: ConsumerSearch.com and The About Group Research, June 2011
- 68% of daily deal buyers returned to the establishment even without another discount.
- 53% of daily deal buyers went on to become regular customers.
Source: Technomic Research (Food Industry Research Firm)
- 67% of daily deal buyers for restaurants said they returned to the restaurant where they had previously used a daily deal.
- 48% of daily deal buyers for restaurants were new customers, and 83% ended up recommending the restaurant to family or friends.
Marketing Takeaways:
While most of the data seems to point favorably in the direction of businesses using daily deal sites to their advantage, the businesses themselves still seem pretty skeptical about their worth. So what's up with all this conflicting data, and what can marketers learn from it?
For some businesses, use of daily deal sites might help boost sales and increase new customers, while for others, it might not. Restaurants, for example, seem to be a great fit for these daily deal sites, whereas other businesses might not benefit as well.
So should you try using daily deal sites or not? We think there's no harm in experimenting. Be aware of the pros and cons of daily deal sites, and if you weigh them and still think you might be able to succeed, test one out! It might fail, or it might hit a home run. Innovating and experimenting with new trends that ultimately pay off is usually what propels many successful businesses. You could be next!
Have you tried using daily deal sites for your business? What have you learned?
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