Daily Deal Operators Advised to Market Offerings Via TV

Marketers remain intensely focused on daily deals. And, as I noted last week, experts predict this marketing format could be valued at over $4 billion by 2015. With all of this attention on the industry, researchers are exploring who makes the best targets for these programs and how operators might expand their reach.

Some reports indicate that up to 44% of consumers may be using or searching actively for daily deals and a significant number of shoppers say they are overwhelmed by the number of deals in their inboxes. But a new study jointly published by Rice University and Cornell University faculty members found no evidence of fatigue. The study encompassed nearly 1,000 consumers and analyzed various aspects of daily deal use in order to allow researchers to create a profile of the typical daily deal user.

Most daily deal users find out about the opportunity via email. The study also classified consumers who have purchased 11 or more deals as heavy users. People in this group are most likely to check their email daily for a deal, to say the deals are saving them money on what they would have bought anyway, and that they intend to make another purchase within a month.

Consumers with specific demographic characteristics are more likely to purchase daily deals. These are:

  •  Age – younger consumers purchase more deals.
  • Income – consumers with higher incomes purchase more deals.
  • Residence – consumers who live in urban and suburban markets purchase more deals.

The study also revealed that daily deal operators can do well by targeting consumers who are interested in trying new products and services. These are often consumers who also want to talk about their purchases and try to influence others.

The most frequently used daily deal sites by participants in this survey were:

  • Groupon 56%
  • LivingSocial 45.8%
  • Restaurants​.com. 46.1%

How can daily deal sites reach consumers who are currently not enrolled? Consumers list the following reasons for not signing up:

  • Didn’t know about daily deals: 45.3%
  • Not available in my area: 17.9%
  • Never thought of buying one: 27.4%

The researchers suggest that marketers may need to broaden their marketing activities to include a format like TV in order to increase awareness.

[Sources: PriceGrabber Survey. Pricegrabber​.com. 20 Jun. 2011. Web. 26 Sep. 2011; Dholakia, Utpal and Kimes, Sheryl. Daily Deal Fatigue. Rice University. Cornell University. September 2011. Web. 26 Sep. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.