Daily Deal Subscribers Actively Share Deals, Buy on W-O-M

cmb-reasons-for-sharing-daily-deals-august-2012.png54% of consumers who subscribe to a daily deal program strongly agree (top-2 box score on a 10-point scale) that they will share a deal because it’s great, regardless of whether or not they are current customers of a business, according to [download page] a July study from Chadwick Martin Bailey (CMB) and Constant Contact. 45% strongly agree that they would share a deal because they know their friends will like it, while 34% are more likely to share the deals from businesses of which they are already customers.

Overall, 27% of respondents have purchased 5 or more deals in the prior 6 months, while 21% have bought 3-4 deals and 31% 1-2 deal. Just 21% have purchased no deals, despite having subscribed.

Word-Of-Mouth Drives Purchases

Recommendations from friends or family make subscribers more likely to purchase a deal from an unfamiliar small local business. Half of daily deal subscribers report being highly likely to purchase a deal from such a business if it is recommended by a friend, followed by deals coming from a national deal service like Groupon or LivingSocial (32%) or deals recommended by a social media site (6%).

Some 31% are more likely to buy a deal recommended by someone they know, with women skewing higher than men (35% vs. 25%).

Email Leads Platforms For Sharing

Email is the most popular platform for sharing daily deals with friends and family, at 55% of those who have shared a daily deal in the last 6 months, followed by Facebook (27%), Twitter (5%). Of those who have shared a deal via email, 78% have shared more than one.

Familiarity, Proximity Key Purchase Drivers

While 60% of daily deal subscribers strongly agree they will buy a deal because it is something they already like to do, roughly 2 in 5 will do so because it comes from a local business with which they are familiar (43%), or is close to where they work or live (39%).

Daily deals are effective in creating that familiarity. About 9 in 10 daily deal shoppers say that after redeeming their most recent offer they either made another transaction with the same company (44%) or plan to do so (47%), according to ForeSee survey results released in March 2012. This compares to just 9% who say they either do not plan to do business with the company again (3%) or are unsure (6%). Still, the CMB survey revealed that for 58% of customers, even a good deal experience does not automatically equal loyalty.

Other Findings:

  • Women are more likely (60%) to share a deal because it is a great deal than are men (46%).
  • Deals for restaurants (65%) and entertainment (48%) are the most commonly shared, followed by food and grocery (36%), travel (25%) and spa and beauty (23%).
  • 92% of consumers think local deals are here to stay, versus 8% who view them as a passing fad.
  • 60% of daily deal subscribers agree that deals attract new customers to local businesses.

About The Data: Data was collected from 1,433 consumers, age 18+ in the US through the CMB Consumer Pulse Research Now online panel, on behalf of Constant Contact. Data was collected through a 15-minute online questionnaire fielded in Q1 2012.