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Daily Deal Users Look Local

More than 40% would buy a deal because it was offered by a small business they already knew

August 13, 2012

People who sign up for daily deals seem intent on keeping their money local. According to a Q1 2012 survey of US internet users conducted by market research firm Chadwick Martin Bailey on behalf of Constant Contact, 43% of those signed up for a daily deal program said they would be more likely to purchase a deal if it was offered by a local small business that they already knew. Unsurprisingly, six in 10 respondents would buy a deal if it was for something they already knew they enjoyed.

Reasons US Internet Users Purchase Daily Deals, Q1 2012 (% of respondents)

Word-of-mouth endorsements were also found to go a long way in driving deal purchases from local small businesses. Half of those surveyed named the recommendation of a friend or family member as a reason they would purchase a deal. The reputation of a national deal service, such as Groupon or Living Social, also helped push deal purchases to some degree, but that’s unsurprising given that both attempt to cater to small businesses.

Factors that Are Highly Likely to Influence US Internet Users to Purchase a Daily Deal from a Local Small Business*, Q1 2012 (% of respondents)

The clearest path to deal-seekers’ wallets may be through their stomachs—65% of subscribers had used a social network to recommend a deal related to a restaurant, making that the most-shared deal category. The next most commonly shared category was entertainment (48%), followed by food and grocery (36%).

Types of Daily Deals US Internet Users Share on Social Media, Q1 2012 (% of respondents)

However, the study found that a well-executed daily deal did not necessarily translate into long-term customer loyalty. Only 42% of respondents said that getting a good deal would imbue them with an attachment to a business. That may be further hindered by deal vendors’ tendency to withhold customer contact information from the businesses they work with, making it difficult for small businesses to follow up and develop deeper relationships with customers.

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Check out today’s other articles, “Boomers’ Digital Affinities Rooted in 'Practical Web'” and “Ecommerce Beyond Travel Gains Steam in India.”


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