Who’s Using Daily Deals—and How Can You Lure Them to Your Business?

By Rieva Lesonsky

Do you use daily deal sites like Groupon and LivingSocial to lure customers to try your business? A new study from Edison Research, The Daily Deals Consumer 2012, offers some useful insights into who’s using these services, why and the potential impact on your brand and business. Here’s a closer look.

Nearly one in six Americans (15 percent) use daily deal services. Daily deal users are primarily in the 25 to 54 age group; two-thirds are women; and they have a higher than average household income.

Daily deal sites are most popular in the South, where 45 percent of users are located. Next comes the West with 22 percent of users, the Midwest with 20 percent, and the Northeast with just 13 percent.

Groupon is by far the most popular daily deal site, with 83 percent of daily deals users registered there. Forty-four percent use LivingSocial, and 12 percent use “other.”

More than half of users are relatively new to daily deals, having joined in the past year. Since they started using daily deals, most users (48 percent) say their purchasing habits have remained fairly steady, but 32 percent are using deals less often than when they first started, while 14 percent are using them more often.

Deals work–only 6 percent say they have signed up but never purchased a deal. As to how well they work, there’s good news and bad news. While 28 percent of users say they’ve tried a new business because of a deal, then continued to patronize it without a deal, 30 percent say they’ve tried new businesses once, but never gone back, and 28 percent say they use deals from businesses they already patronize.  Daily deals can be a good way to get new customers, but you’ve got to work to earn their loyalty beyond the deal.

Daily deal users were substantially more likely than average consumers to own a smartphone or tablet. Because they’re so mobile, there are opportunities to reach out to them with “just-in-time” deals that are local and mobile.

Daily deal users spend more time online than average consumers (3.34 hours per day, as opposed to the average of 2.25), and 85 percent go online at work. They’re also far more likely to choose the Internet over other forms of media, such as radio, TV and newspapers. In fact, they’re also more likely to listen to Internet radio and watch online videos, which could lead to cross-platform promotional opportunities.

Not surprisingly, daily deal users are far more likely to have social media accounts than non-daily deal users, and spend more time there. Some 83 percent are on Facebook, 40 percent are on LinkedIn, 20 percent are on Twitter and 20 percent are on Google+. They are also twice as likely to follow companies or brands on social media. When you get a daily deal user hooked on your business, you have a great opportunity to reach their friends and family circles as well.

How are you using daily deals in your business?

Image by Flickr user Taro Taylor (Creative Commons)

This entry was posted on Wednesday, May 16th, 2012 at 6:00 am and is filed under Business Development, Email Marketing, Marketing, Sales Process, sales process, Search Marketing, Small Business, small business, Social Media. You can follow any responses to this entry through the RSS 2.0 feed.


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