How group e-coupons help build brand loyalty
Online group coupons are becoming an important marketing tool for many businesses, but do they actually work to build loyalty? According to Ipsos Reid's 'Canadian Interactive Reid Report', consumers are flocking to online coupon websites to try new companies, experience new products and services, and save money - but consumers are not the only ones reaping the rewards.
The report noted that websites such as Groupon.com and WagJag.com may be laying the groundwork for building loyal customer bases. In fact, among those consumers who said they had already redeemed an online group coupon, 57% said they would be likely (18% very likely, and 39% somewhat likely) to return to the same company without a coupon or gift certificate. And 62% of those who had bought an online group coupon in the past said they had subsequently gone on to make a later purchase at full price from the same business.
"In the current economic climate, Canadians are wary of trying new things," explained Catherine Dawson, senior vice president for Ipsos Reid in Vancouver. "But with online group coupons, consumers are introduced to activities, restaurants, and other products and services they might never have tried before - and the risk to them is lower because of the discounts being offered. For small businesses and start-ups, this is potentially a great way to increase brand exposure and reach new clients, and ultimately help to build customer loyalty."
Online group coupons are clearly one way in which Canadian consumers are branching out to try new businesses. Eight out of ten (83%) who had used a group coupon in the past said they had used a business for the first time because of an online group coupon. A similar proportion (82%) said they had tried a product or service they wouldn't have otherwise tried without the coupon. Among the various categories of online group coupons bought, the most popular were:
- Restaurants (51% of group coupon users);
- Personal services (27%);
- Grocery items (25%).
Among those who were aware of group coupon websites in general, 61% said they had subscribed to receive regular emails or other alerts for notifications of new deals.
In terms of awareness of specific group coupon websites, Groupon.com was the clear leader, with the top websites cited by online consumers being:
- Groupon.com (54%);
- WagJag.com (27%);
- DealFind.com (19%);
- LivingSocial.com (18%);
- DealOfTheDay.ca (12%);
- TeamBuy.ca (12%).