Daily Deals Customers Offer Merchants Repeat Business

March 7, 2012

foresee-daily-deal-repeat-business-mar-2012.jpgRoughly 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%).

This finding is supported by recent results from a February 2012 report from Localeze and 15miles, conducted by comScore, which found that 45% of daily deal customers have purchased multiple daily deals from the same business, while a further 41% intend to do so.

Meanwhile, according to ForeSee, repeat business is more likely to occur shortly after deal redemption with current customers (56%), although a significant proportion of former (27%) and new customers (20%) return soon after redeeming their deal.

Deals Provide New Customers, Too

29% of the web shoppers (defined as visitors to the top 40 retail websites) who redeemed their most recent daily deal say that they were new customers of the company: 17% knew of the company, but had never bought from them, while 12% were not even aware of the company prior to receiving the offer. In fact, 4% had been former customers with no plans to do business with the company again. Less than half had been frequent customers of the company.

Redemption Rates High

Data from the report indicates that 56% of daily deal purchasers had used more than 1 offer in the past 90 days at the time of the survey, while an additional 34% had used one offer. Groupon had the highest rate of purchases (50%) among daily deal subscribers, followed by LivingSocial (25%) and Woot (8%).

Other Findings:

  • 60% of the respondents said they subscribe to daily deals, down from 65% during Spring 2011. 38% had purchased an offer in the past 90 days and 34% had redeemed an offer in that period, down from 44% and 39%, respectively.
  • 44% of Groupon subscribers only subscribe to one daily deal provider, compared to 12% of LivingSocial subscribers.

About the Data: The ForeSee data is based on surveys conducted in November and December 2011 as part of the ForeSee Holiday E-Retail Satisfaction Index, which included responses from almost 10,000 visitors to the top 40 retail websites as determined by Internet Retailer’s 2011 Top 500 Guide.

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