No one was certain exactly how business profits—and benefits—would play out in the daily-deals category that launched onto the ecommerce scene a couple of years ago, but it now seems that the benefits are becoming clearer.
New research by customer-experience analytics firm ForeSee shows that daily-deal sites are certainly attracting new customers and inspiring customer loyalty.
“The challenge is for businesses to use this tool in smart ways and to work with daily-deal sites that can deliver a good experience to users and merchants alike," said Larry Freed, president and CEO of ForeSee.
Here are some of the measured benefits:
- 12% of purchasers had never heard of the business prior to buying the deal
- 55% of purchasers were new or infrequent customers of the business
- 90%-plus of purchasers made another transaction with the merchant company following the initial purchase or plan to do so
It also appears that Groupon is the front-runner of daily-deal sites with more than half of the ForeSee survey respondents using it; and 30% of them using LivingSocial—one of Groupons top competitors. ForeSee, however, does admit that there is some overlap in the subscriber base, with 40% of survey respondents not subscribing to any daily deal services at all.
The survey also found that about 44% of Groupon’s customers only subscribe to Groupon, while only 12% of LivingSocial users subscribe only to LivingSocial.
Surely, businesses that wrote off the daily-deals category might want to reconsider it as a viable approach to business growth.
[Caption: Daily deals provide value for merchants according to new study by customer-experience analytics firm ForeSee. Image courtesy of PRNewsFoto/ForeSee]