With revenues in the daily deal industry forecast to reach $3.6 billion in 2012, more marketers may be asking themselves whether they should explore this format. For small businesses, a successful deal could bring a significant number of new customers through the door. New research suggests that a positive experience with daily deals could also lead small business marketers to roll out a variety of related types of promotions.
In a blog post last month, I highlighted a Rice University study which shows that the more experience businesses have with daily deal promotions, the more likely they are to succeed and bring new customers through the door. Consumers appreciate the chance to visit a favorite vendor at deep discount but they are also willing to try out a new retailer when they can save money while doing so. These successes explain why BIA/Kelsey analysts believe that consumer spending on these deals will jump to $4.4 billion in 2013 and to $5.5 billion by 2016.
Small and local businesses say they’re interested in participating in daily deals within the next six months at the following rates:
- Extremely likely 11%
- Very likely 15%
- Somewhat likely 24.3%
- Not very likely 23.7%
- Not at all likely 26.0%
As small businesses become more comfortable in this channel, BIAKelsey analysts believe that they’ll grow more comfortable with related marketing services. These include instant mobile deals, loyalty products and reputation management services. All of these formats may sound lofty to the typical small business owner but as they invest more in digital, they'll see this channel has many formats to offer.
To learn more about Daily Deal Responders, check out the Ad-ology Interests & Intent study on this topic.[Source: U.S. Consumer Spending on Online Deals. Biakelsey.com. 17 Sept. 2012. Web. 26 Sept. 2012]