NEW YORK (June 8, 2011) — Deal-of-the-day Web sites like Groupon and LivingSocial continue to earn buzz and increased cultural relevance, but do consumers really believe that these kinds of sites – and the discounts companies offer through them — are truly worth their time or their money? According to a survey released today by ConsumerSearch.com, part of the About Group, sentiment towards “daily deal” Web sites is in fact decidedly positive, with consumer interest, participation and satisfaction on high. Businesses are also generating repeat visits as a result of offering discounts through these sites.
ConsumerSearch.com, a Web site that does the homework for consumers, helping them to make informed shopping decisions, conducted the survey in March 2011. Polling more than 1,000 respondents, the survey examines the popularity of and satisfaction with daily deal Web sites among consumers. Highlights include:
- Sixty-four percent (64%) of respondents described the experience they had with their last redeemed deal as very satisfying.
- Fifty-three percent (53%) of respondents use daily deals to discover local businesses they weren’t aware of previously.
- Among respondents who purchased at least one deal in the past year, 68% purchased three or more deals, and 30% purchased six or more deals.
- Daily deals can lead to repeat business, as 68% of those who have redeemed a deal voucher from a business have subsequently returned to that business without having a deal.
- Daily deals sites may create opportunities for new and emerging brands, as 63% of respondents feel that daily deals “are a good way for new businesses to get the word out.”
- When asked for their personal feelings about daily deal sites in general, more than a quarter of respondents (27%) felt that “not many deals appeal to me, but I’m hopeful that one might interest me eventually.” Seventeen percent (17%) felt that “the deals are good, but there are a lot of ‘gotchas’ in the fine print.”
- There’s a lot of window shopping. Thirty-five percent (35%) of respondents said they subscribed to deal sites/newsletters, but hadn’t made a purchase in the past year.
- Groupon is used by most respondents (85%) followed by LivingSocial (55%). Other sites such as Yelp Daily Deals, BuyWithMe and SocialBuy are only used by a small fraction of the respondents.
- Groupon is the favorite daily deals site, preferred by 71% of respondents, compared to 20% for LivingSocial.
“Daily deals sites are clearly bringing benefits to both shoppers looking for discounts and companies trying to reach new customers,” said Christine Frietchen, editor-in-chief of ConsumerSearch.com. “People are using daily deals sites to try new services and places, and businesses are successfully leveraging them to create repeat business and connect with their audiences beyond a single discount.”
About The About Group
The About Group comprises the Web sites About.com, ConsumerSearch.com and CalorieCount.com. About.com is a valuable resource for content that helps users solve the large and small needs of everyday life. ConsumerSearch.com analyzes expert and user-generated consumer product reviews and recommends the best products to purchase based on the findings. CalorieCount.com is an online resource that helps users solve the everyday challenges of losing weight and living a healthy lifestyle.
The About Group is part of The New York Times Company (NYSE: NYT), a leading media company with 2010 revenues of $2.4 billion, includes The New York Times, the International Herald Tribune, The Boston Globe, 15 other daily newspapers and more than 50 Web sites, including NYTimes.com, Boston.com and About.com. The Company’s core purpose is to enhance society by creating, collecting and distributing high-quality news, information and entertainment.
About the Survey
The study was conducted by ConsumerSearch from March 18-24, 2011, among 1,049 daily deals users, recruited via intercept on ConsumerSearch.com and About.com.