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When Daily Deals Work Best for Small Businesses

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When Daily Deals Work Best for Small Businesses

There's now another reason for small businesses to be skeptical of daily deals. New research has found that 43 percent of consumers said they would be more likely to purchase a daily deal  if it was offered at a local business they knew. However, a similar number of respondents also said that buying a daily deal would not make them more loyal to the company or business offering it. 

"Only 42 percent of respondents said that getting a good deal would imbue them with an attachment to a business," the eMarketer report said. "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."

Several factors played a large part in the success of daily deals. Thirty-nine percent of consumers also said that they would be more likely to purchase a daily deal because it was offered at a store that was close to where they lived. Both those factors, however, do not beat familiarity with a product, the eMarketer report found. Six in 10 consumers said they would purchase a daily deal if it was for a product they already liked to use.   

[5 Daily Deals Gone Unexpectedly Wrong]

The research also found that daily deals do not need to come from daily deal websites like Groupon and LivingSocial in order to be successful. In fact, half of the report's respondents said that the biggest factor influencing consumers in their decision to purchase a daily deal was if it was recommended by friends and family members. Just 32 percent of consumers said they would be influenced to buy a deal if it came from sites like LivingSocial and Groupon and 6 percent of consumers said they would be influenced to  buy if it were recommended on a social media site.

Among those deals that were recommended on social media, deals on restaurants were most popular. Nearly 70 percent of respondents said they had recommended or shared a daily deal via social media for a deal on a restaurant. Deals on entertainment, food and groceries, travel and spa and beauty services all followed. 

The research in this eMarketer report was conducted by Chadwick Martin Bailey, a market research firm, for Constant Contact. 

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