Are Daily Deal Sites a Smart Investment for Companies?

I love daily deal sites.  Seriously…some might say I am borderline addicted.  From large, national sites, like Groupon and Livingsocial, to regional sites, like Coupme, I frequent them all.  I have enjoyed great meals, expanded my wardrobe, and even went zip-lining for 50% off (or more!) thanks to deals I found.  And I am in very good company.  In July 2011, around 11 million consumers visited daily deal sites.  In fact, 16% of daily deal seekers visit sites or read email digests daily!  North of 33 million consumers visited in July 2011, up almost 400% from last year. boasted more than 10 million visitors, which is 2.5 times more visitors than they has last July.  Newcomer, who entered the US market in January, already attracts more than 1 million consumers a month.

Every day it seems like new daily deal sites pop up…and they are becoming more and more specialized.  FoodCatching is all about restaurants.  The best deals on children’s clothing and fun can be had at Zulily. ManDeals targets men by focusing on sporting events, food, and beer.  There is even a site called that specializes in kosher deals.   And retailers are jumping into the game too.  Wal-Mart, Amazon, Target, and eBay are just a few of the many retailers that offer daily deals.  It seems as though there is no end to the availability of daily deals.

It’s a no-brainer why consumers love daily sites, but what is in it for the participating companies? There have been a lot complaints voiced about how voucher purchasers are existing consumers who would happily pay full price or are consumers who will never purchase from the retailer again.  Well, according to the Summer 2011 Online Shopper Intelligence survey, these complaints may be unfounded.  A little less than half of consumers report that daily deal sites have introduced them retailers/companies they had never purchased from before.  Clearly these sites are a great platform from which to reach new consumers.  Even more telling is that among these first time purchasers, 59 percent purchased from that company again.  Not only do daily deal sites attract new consumers and create repeat consumers, but these consumers are also likely to tell others about the company.  Sixty percent of users tell others about the companies they learn about via daily deal sites.  And these people don’t just tell one person either; 2 out of 5 outspoken consumers tell 3 or more people about the company.

So whether you are a small business trying to get the word out about your product, or a well established company who is trying to attract more customer, daily deal sites cannot be ignored.  They have a large, established audience base and help you establish long lasting relationships with new and excited consumers.  And for all the individuals reading this post, if you haven’t tried daily deal sites, what are you waiting for?  Take advantage of 50 percent off your favorite shops, restaurants, and activities today!

About Debra Miller Arbesman:
Debra Miller Arbesman is senior associate, retailer and consumer products at Compete, a Kantar Media company that helps brands improve their marketing based on the online behavior of millions of consumers.