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BizReport : Ecommerce archives : March 07, 2012

Groupon customers may be loyal after all

A new survey by Foresee Results puts daily deals websites in a better light than previous reports. It reveals that the likes of Groupon and LivingSocial can create loyal customers and repeat business.

by Helen Leggatt

foresee logo.pngOver the past year businesses have expressed disappointment with daily deals sites. Many found the customers they attracted were 'stingy' and repeat business was unsatisfactory.

In July last year UK-based copywriting boutique Cooper Murphy released findings that showed that far from building a brand or clientele, daily deals were attracting opportunists out for a bargain and who were unlikely to become regular customers or spend anything more than required to benefit from a coupon.

A month earlier research by Rice University found that just 1 in 5 daily deal redeemers came back again to make a full-price purchase.

But a new survey of 10,000 daily deal users by Foresee Results puts a far better spin on the habits of customers. It found that 44% of those that had redeemed a daily deal offer had gone back to the business again after redeeming the offer. Furthermore, another 47% said they plan to revisit a business they have redeemed a daily deal coupon with.

Just 3% said they had no plans at all to revisit a business and 6% were unsure.

"No one really knew what to expect when daily deal sites first came on the scene, but our research shows that these sites are no passing fad," said Larry Freed, president and CEO of ForeSee.

"Businesses that use these sites effectively are growing their customer base and customers are getting a deal, which results in a win for everyone. The challenge is for businesses to use this tool in smart ways and to work with daily deal sites who can deliver a good experience to users and merchants alike."

Tags: daily deals, e-commerce, Groupon, loyalty trends, online shopping, repeat business, survey

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