In November 2008, a deal-of-the-day website named Groupon launched. Heard of it? Yes, we all know and have likely used Groupon or the many competitors that have been established since.
QSR Magazine points to a 2011 study by ForeSee that showed 65% of online shoppers subscribe to at least one daily deal email. Two-thirds of these subscribers had purchased a deal in the last three months and 89% of them redeemed it.
So we can see that these deals are popular among consumers but how are they impacting your business?
The daily deal has changed the way consumers buy and a result, the way businesses think about using these incentives. In a time when consumers are more aware of their spending, the daily deal has traditionally provided the opportunity to generate trial. The discounts are significant and, based on the statistics above, many consumers take advantage of those savings.
While these deals may encourage trial initially, it becomes a challenge for businesses to hold on to the deal hunters and turn them into loyal customers. The consumer mindset is to wait for another deal that will inevitably come through with the next email.