Here's The Deal On Deals

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According to a new study from Chadwick Martin Bailey and Constant Contact and reported by Marketing Charts, 54% of consumers who subscribe to a daily deal program will share a deal because it’s great, regardless of whether or not they are current customers of a business. 45% strongly agree that they would share a deal because they know their friends will like it, and 34% are more likely to share the deals from businesses of which they are already customers.

The CMB study posits ten quick facts to explain the how and why consumers use these deals:

1. Consumers who sign up to receive Daily Deals end up purchasing them. Four-out-of-five Daily Deal subscribers have purchased at least one deal in the last six months:

• 27%   purchased 5 or more
• 21%   3-4
• 31%   1-2
• 21%   none

2. Recommendations from friends and family make consumers more likely to purchase a deal from an unfamiliar small business. Influence on likelihood to purchase a deal from a local small business (%8-10 Highly Likely)

• Deal is recommended by friends or family   50%
• The deal comes from a national deal service (e.g. Groupon or LivingSocial)   32%
• Deal is recommended by a social media site   6%

3. Personal endorsements drive deal purchases, especially for women. Highly likely to buy a deal if it’s recommended to them by someone they know.

• Men   25%
• Women   35%
• All   31%

4. A majority are willing to share a deal if it’s great, regardless of whether they are a current customer. Women are more likely (60%) to share a deal “because it’s a great deal” than men (46%)

5. Familiarity and proximity matter: more than 1/3 of consumers are more likely to buy a deal from a local small business. Those strongly agreeing to buy a deal if:

• It's something I already like to do   60%
• It comes from a local small business I am familiar with   43%
• It's close to where I work or live   39%

6. For nearly 60% of customers, even a good Daily Deal experience doesn’t automatically equal loyalty. 42% agree that “If I like what I get from a Daily Deal I’ll become a loyal customer.” 58% do not.

7. More than twice as many consumers share deals via email than on social networks. Platforms for sharing daily deals with friends and family:

• Email   55%
• Facebook   27
• Twitter   6%
• Other   5%

8. Deals for restaurants and entertainment are the most commonly shared. Top 5 types of daily deals shared:

• Restaurants   65%
• Entertainment   48%
• Food & Grocery   36%
• Travel   25%
• Spa & Beauty   23%

9. Most people think Daily Deals are here to stay, 8% think they’re just a fad, 92% don’t.

10. Subscribers think Daily Deals help attract new customers to local businesses. 60% strongly agree, 3% disagree, and 36% are ambivalent.

For additional information, please visit CMB here to access the PDF file.

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1 comment on "Here's The Deal On Deals".

1. Paula Lynn from Who Else Unlimited
   

   commented on: August 6, 2012 at 7:29 a.m.
   It is rare when a deal is found in my area. $20 off $40 for a $60 meal plus $20 parking in center city is not a deal. About once a year, I find something useful. (Lately there was one for a museum entrance after we already went.) Overall, those advertised deals of half price are contrived for restaurants and for activities/lessons/medical procedures......rare within my 5-10, etc. mile radius. I don't know how many other people find the same situation.

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