Research firm ForeSee Results put its analysis spotlight on the daily deal industry, concluding that discount distribution services offered by companies such as Groupon, LivingSocial and Google do in fact bring lots of new customers to merchants’ doorsteps.
According to ForeSee, 38 percent of the people purchasing daily deals were already frequent customers of the merchant in question (which could be bad news for retailers since they give discounts to people who already buy its products and services at full price that way).
However, 31 percent are brand new business, and 4 percent were former customers, which translates to 35 percent new business. Furthermore, since the remaining 27 percent are described as ‘infrequent customers’, you could even argue that, in total, 62 percent of daily deal buyers are the people merchants are most keen to reach.
It’s that 62 percent, you see, that businesses offering discounts on sites like Groupon and LivingSocial, should be trying to convert to regular customers by giving them a good experience and a taste for more (preferably at non-discounted prices).
By the way, we recently ran a guest post written by a BBQ restaurant owner who was very excited about his experience with Groupon – he said that 70 percent of the 1,200 customers the deal had brought to his doorsteps were actually new customers.
(We also ran a series of candid guest posts by a self-described daily deal hater, of course).
The data cited above comes from ForeSee’s Top 100 Online Retail Satisfaction Index (Spring 2011). This is annual research conducted by ForeSee with regards to customer satisfaction with the to 100 American e-retailers, and comprises data from surveys of some 22,000 online shoppers about a variety of topics.
According to ForeSee, about two thirds of those ‘Top 100′ site visitors are enrolled in at least one daily deal email program (or 65 percent of the 22,000 respondents).
Unsurprisingly, Groupon is the most popular site among those who subscribe to daily deals, with about twice the number of subscribers as its closest competitor, LivingSocial, and more than twice the number of purchasers.
Of those who subscribe to daily deals, ForeSee posits that nearly half (46 percent) subscribe to more than one service, leading the firm to the conclusion that there may be enough room for a host of competitors in this particular space.
Still according to ForeSee’s data, nearly two-thirds of subscribers to daily deals have purchased at least one deal in the past 90 days, regardless of what site they’re subscribed to, and 89 percent have redeemed their purchase during that time.
More stats and charts are available over at the ForeSee Results blog.
Also read:
Why Daily Deals Are Becoming A Raw Deal
Why I Want Google Offers And The Entire Daily Deals Business To Die
Why Groupon Is Poised For Collapse
Groupon features a daily deal on the best stuff to do, see, eat, and buy in more than 565 cities around the world. By promising businesses a minimum number of customers, Groupon can offer deals that aren’t available elsewhere. Groupon brings buyers and sellers together in a fun and collaborative way that offers the consumer an unbeatable deal, and businesses a large number of new customers. To date, it has saved consumers more than $300 million and claims it...
LivingSocial is the social commerce leader behind LivingSocial Deals, a group buying program that invites people and their friends to save up to 90 percent each day at their favorite restaurants, spas, sporting events, hotels and other local attractions in major cities. LivingSocial has an extensive user base of more than 85 million, and is headquartered in Washington, D.C.
As a pioneer in customer experience analytics, ForeSee continuously measures satisfaction and delivers powerful insights on where to prioritize improvements for maximum impact. ForeSee applies its trusted technology across channels and customer touch points, including websites, call centers, brick-and-mortar locations, mobile experiences, and social media interactions. Because ForeSee’s proven methodology measures satisfaction in a manner that is predictive of customer loyalty, purchase behavior, future financial success, and even stock prices, executives and managers are able to drive future success...
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