Online group coupons are becoming a hot marketing tool for businesses– but do they actually work to build loyalty?
According to a recent issue of the Ipsos Canadian Inter@ctive Reid Report, Canadians are flocking to daily deal sites to try new companies, experience new products or services, and save on purchases. And customers aren’t the only ones reaping the rewards.
Websites such as Groupon.com and WagJag.com appear to be laying the groundwork for building loyal customer bases.
Among those who have redeemed an online group coupon in the past, six in ten (57%) would be likely (18% very likely, 39% somewhat likely) to return to the same company without a coupon or gift certificate. In fact, a majority (62%) of those who had bought an online coupon in the past have then gone on to make a full priced purchase from the business they first became familiar with through the group coupon site.
Online group coupons are clearly a way that Canadian consumers are branching out to try new businesses. Eight in ten (83%) who have used a group coupon in the past have used a business for the first time because of an online group coupon. A similar proportion (82%) has tried a product or service they wouldn’t have otherwise if not for the coupon. Among the various categories of online group coupons bought, the most popular are restaurants (51% of group coupon users), personal services (27%), and grocery items (25%).
When it comes to specific sites, Groupon.com dominates the industry with just over half (54%) of online Canadians aware of the site, followed by WagJag.com (27%), Dealfind.com (19%), LivingSocial.com (18%), Dealoftheday.ca (12%), and TeamBuy.ca (12%). Among those aware of group coupon sites in general, six in ten (61%) subscribe to receive emails or other alerts for notifications of new deals from the sites.