With the likes of both Amazon and Google jumping into the world of daily deals along with Groupon we have to wonder, are these deals good for the local businesses who participate or just good for customers and the websites that run these services. Take a look at this interesting article posted on Forbes.com where both sides of the argument are looked at along with some interesting data.
Groupon may be insanely popular with consumers, but reviews from business owners are mixed. New research now indicates daily deals are indeed bringing in new customers and getting them to come back once the promotion is done.
The daily deal phenomena is a double edged sword. Consumers love them for the discounts on everything from dinners to dental work, but business has been wary, claiming sites like Groupon either don’t work, or are so costly as to be detrimental. But according to researchers, these sites don’t just reach customers, but keep them coming back well after the discounts run dry.
“There’s a real disconnect between the business owners and consumers and how they feel about (the deals),” says Christine Frietchen, Editor of ConsumerSearch. The Web site surveyed readers — deal seekers all — and discovered that 68% of those who bought a daily deal became repeat customers.