Consumers Finding & Sharing Daily Deals

Factors That Influence Daily Deal Purchases From Local Businesses

  • 54% of daily deal subscribers would share a deal simply because it’s great, regardless of whether or not they are current customers [TWEET THIS STAT]
  • 45% would share a deal because they think their friends would like it [TWEET THIS STAT]
  • 34% are more likely to share deals from businesses of which they are already a customers [TWEET THIS STAT]
  • 50% of people would buy a daily deal from a local small business that was recommended by family or friends [TWEET THIS STAT]
  • 32% would buy one that comes from a national service like Groupon or LivingSocial [TWEET THIS STAT]
  • Only 6% would buy one that was recommended by a social media site [TWEET THIS STAT]

THOUGHT: In April of last year I did an interview when media interest in daily deal sites like Groupon & LivingSocial was at its peak.

Despite the early reports of merchants who got screwed through a combination of thoughtlessness on their part and unscrupulous sales practices, and despite Groupon’s recent troubles, consumer demand for daily deals appears to remain strong. That’s not surprising considering the still-fragile state of the economy.

That reality helps explain, in part, how the word of mouth dynamic works online with such deals.

As noted above, a majority of daily deal subscribers share deals simply because they think they are great deals. Nearly half share deals because they think their friends will find them valuable.  A third share deals because they are loyal to the business offering the deal.

Value is the common denominator, here. Daily deals typically offer great value in and of themselves. The act of sharing these deals is an offer of value from the sharer to followers, friends and family alike. Loyal customers who share daily deals are providing additional value to the businesses they love.

And as the numbers above indicate, the people with whom these deals are shared respond by taking advantage of the deals.

I subscribe to several daily deal sites: Groupon, LivingSocial, AmazonLocal, Google Offers, CrowdCut, the Star Tribune‘s Steals and the Pioneer PressTwin Cities Daily Deals. I have, occasionally, shared some of the deals I’ve bought both because I thought they were great deals but also, in some cases, because of credit toward future deals.

I’ve shared deals because of loyalty to a company. I’ve passed on great deals from companies I’d already cashed in on their daily deal and felt I’d be taking advantage of them by buying subsequent daily deals.

I suspect that most businesses are not paying much, if any, attention to those customers who are sharing daily deals with their networks though email or social media. But in addition to driving sales and acquiring new customers, daily deal sites can be a great way for businesses to identify and cultivate the most loyal of customers, those that not only buy but also tell.

Free Music on Google+: Google is trying it’s best to get its Google+ network going among music fans. Musicians have been using Hangouts, the network’s video conferencing feature,  to broadcast concerts or offer fans impromptu jam sessions. Another feature I personally love is the ability to share whole albums you’ve purchased through Google Play with your followers on Google+.

I love music and therefore tend to buy a lot of it. So follow me on Google+ if you want an occasional free listen from my music library. Recent albums I’ve shared include Caught In The Act by Grand Funk Railroad; Own The Night by Lady Antebellum;  Contra by Vampire Weekend; Fire Away by Ozomatli; and Innervisions by Stevie Wonder.

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About David Erickson

David Erickson is principal of e-Strategy Media, a digital marketing consultancy based in Minnesota. David has extensive experience in digital marketing and is often used as an expert source by media and asked to speak on the topic before organizations and to sit on panel discussions.

1 Comment

  1. Benjamin Cook on August 22, 2012 at 2:35 00 pm CDT

    It would be interesting for companies to be able to see the dynamics of a Groupon or other daily deal campaign. You mention that companies probably aren’t paying much attention to how their daily deals are being shared, but I would argue that they are interested in knowing about this interaction to better gauge ROI. I wonder if in the future these daily deal companies will start offering simple analytics to go along with their service. Wouldn’t it be cool if a company could know the % of coupons redeemed that came from existing fans on Facebook or the % of coupons purchased from a referral source?