Marketing to Women: Are Daily Deals Still Hot?

August 30, 2012 § Leave a comment

Is your email box cluttered with Groupon, Living Social, Daily Candy Deals, One Kings Lane, Fab and more?  Can all of these daily deals still be working?  Are people still using them?  According to a new study from Chadwick Martin Bailey and Constant Contact, four out of five Daily Deal subscribers have purchased at least one deal in the last six months.  In fact, 27% have purchased five or more, 21% have bought 3-4 deals and 31% 1-2 deals.  Just 21% never pulled their credit card out of their wallet.

Here are the top five types of Daily Deals:

  • Restaurants   65%
  • Entertainment   48%
  • Food & Grocery   36%
  • Travel   25%
  • Spa & Beauty   23%

While 60% of daily deal subscribers strongly agree they will buy a deal because it is something they already like to do, roughly 2 in 5 will do so because it comes from a local business with which they are familiar (43%), or is close to where they work or live (39%).

Just like all other marketing methods, marketers to women need to know their target audience, understand what type of offer will draw new business and not cannibalize existing loyal users.  The following info might be helpful.

Daily Deal Demographics

Edison Research 2012 Daily Deal study says that one in six persons or 15% of Americans 12+ are registered users of at least one daily deal site.  Of course, 66% of all deal users are women.  Some 60% are aged 25-54.  One-third have incomes above $75,000.  And we sharp-shopping Southerners love a good deal – 45% of users live in the South.

I also find it interesting that more than half of all users joined in the past year, and more than 60% use the daily deals at least as much or more than when they first joined.

Daily Deal users are mobile with many more devices that the public at large. According to Nielsen, Daily deal sites saw more than 10 million Americans using their apps just during June 2012.  Groupon is the third most popular mobile app (11,942,000 users) among the 45 million smartphone users, only outpaced by eBay and Amazon.  LivingSocial is number five.

Daily deal users spend more time online – 66% feel the internet is the most essential media in their life and are heavy social network users.

Groupon is still the Gorilla of Deals with 83% of the users, and Living Social with only 44%.  Two-thirds of Living Social users are also registered with Groupon.

But here’s some good news about the effectiveness of  Daily Deals:  Some 23% tried new businesses for the first time because of the deal and continued to visit that business without a deal.  Another 30% tried something new but never returned.  And 28% were already customers of a business and used a deal.  Both Groupon and Living Social seem to produce the same percentage of return business.

Sharing Deals with Friends and Family

One more fact that might be important to those of us who market to women:  54% of consumers who subscribe to a daily deal program will share a deal because it’s great, regardless of whether or not they are current customers of a business. 45% strongly agree that they would share a deal because they know their friends will like it, and 34% are more likely to share the deals from businesses of which they are already customers.

Recommendations from our friends and family are important.  These recommendations make consumers more likely to purchase a deal from an unfamiliar small business. What makes us more likely?

  • Deal is recommended by friends or family   50%
  • The deal comes from a national deal service (e.g. Groupon or LivingSocial)   32%
  • Deal is recommended by a social media site   6%

Women are the most likely to share a deal.  More than twice as many consumers share deals via email than on social networks. Most common methods for sharing daily deals with friends and family:

  • Email   55%
  • Facebook   27%
  • Twitter   6%
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