Online buying sites such as Groupon and WagJag can be an effective way for businesses to recruit new (and loyal) customers, according to a report from Ipsos Reid.
In the newest issue of the Ipsos Canadian Inter@ctive Reid Report, the research company found that 57% of people who have redeemed an online group coupon in the past would be likely (18% “very likely” and 39% “somewhat likely”) to return to the same company without a coupon or gift certificate.
The study found that 62% of people who have bought an online coupon in the past have gone on to make a full-priced purchase with a company they discovered through the online buying site.
Catherine Dawson, senior vice-president with Ipsos Reid in Vancouver, said that Canadians are wary of trying new products and services in the current economic climate, but that group buying sites provide a low-risk introduction. Group buying sites can be a particularly effective customer recruitment tool for small businesses and start-ups, she said.
The study found that 83% of people who have used a group coupon in the past tried a business for the first time because of an online group coupon, while 82% have tried a product or service they wouldn’t have otherwise if not for the coupon. Restaurants are the most commonly purchased item on group buying sites (51% of group coupon users), followed by personal services (27%) and grocery items (25%).
Among group buying sites, Groupon boasts a category-leading awareness rate of 54%, followed by WagJag.com (27%), Dealfind (19%), LivingSocial (18%), Dealoftheday (12%) and TeamBuy (12%). The study also found that 61% of people who are aware of group coupon sites subscribe to receive e-mails or other alerts of deals.
