As consumers begin to shop for holiday gifts, many will be seeking deals. For some, a daily deal site will fit the bill. As marketers roll out these deals, they should keep the core demographics of daily deal enthusiasts in mind in order to maximize sales and profits.
The daily deal trend has been increasingly popular with consumers this year but the latest Accenture research indicates that operators can maximize their results by targeting the right demographic groups. Accenture findings show consumers have the following attitudes about daily deals:
- Member of a site: 37%
- Not a member of a site: 56%
- Do not like these sites: 47%
Daily deals are structured to require consumers to purchase their coupon in advance. This requirement may explain why the sites are more popular with higher-income households. For example, 54% of consumers with households in excess of $150,000 belong to one of these sites. The rate is much lower, 27%, for households with annual incomes below $35,000. Additionally, younger consumers are more likely to participate in daily deals. Up to 47% of current deal subscribers are between the ages of 18 and 24. But subscription rates for consumers who are ages 55-to-64 is only about 37%.
The good news for site operators and marketers is that over 1/3rd of subscribers are using these sites more frequently. And the deals being offered are enticing consumers to purchase goods and services that they would have previously overlooked in 26% of the surveyed cases. As a result, marketers may capture new customers through their deal discounts. Other studies have suggested that consumers are tiring of the email deluge related to deals. But Accenture analysts found little evidence of that trend and said deal site operators can become even more successful if they:
- Expand the kinds of services and products being offered at deep discount
- Work harder to make the deals more local
Merchants in the food and beverage sector might want to continue participating in deals to win loyalty. The vast majority of surveyed consumers reported concern about rising food prices and may translate that concern into eating out less.[Source: Wong, Wailin. Younger, affluent consumers drive sites. ChicagoTribune.com. 25 Oct. 2011. Web. 11 Nov. 2011]