Street Fight Poll: For Deals, It’s Still ‘One and Done’
It’s no secret that merchants are skeptical of the value of daily deals to deliver lifetime customers, but we decided to check in with some daily deals redeemers anyway, to find out their latest views on businesses that offer these coupons.
According to our poll, almost 42% of 750 consumers surveyed on September 6 said they’ve never returned to a business they first visited to redeem a deals voucher, and fewer than 17% have been back more than five times (with a full 58% returning at least once to the business, as some readers have pointed out!). Almost 17% returned once, and a shade less than 25% between two and five times. The poll was conducted on behalf of Street Fight by third-party opinions site Toluna QuickSurveys.
The results show that even when consumers return, they find the experience much less desirable. More than 22% found prices too high without a deals coupon promising at least half off normal rates, and about 12% found themselves not interested in the merchant’s other offerings. On the plus side, approximately 13% found the staff friendlier the second time around — probably, some merchants have speculated, because the staff is less burdened and owners are receiving more than 25% value.
The results echo those of a July study conducted by digital SMB marketer Constant Contact and research firm Chadwick Martin Bailey, which reported 58 percent of its 1,433 respondents did not automatically equate a positive daily deals experience with customer loyalty.
The daily deals industry is in need of a silver lining; by the end of last week, Groupon was trading at a mere $4.27 a share, down from more than $25 per share after its $700 million IPO 10 months ago. If there is a silver lining in our results, it’s that the younger demographic, the 18-34, is 10% more likely than consumers 55+ to return to a business after redeeming a deals voucher. But still more than 21% found prices were too high without a hefty discount.
In a nation still recovering from a lingering recession, small business owners don’t have time to waste or money to throw around. They’ve heard the horror stories: deals bring savings-hungry, one-and-done customers, not familiar faces.
Patrick Duprey is an editorial assistant with Street Fight.