Are Daily Deals Right for your Brand?

What Consumers Really Think

Rob Tregenza

rtregenza@imoderate.com

Daily Deal Landscape

What the data tells us

Prevalence

• U.S. adult internet users subscribe to an average of almost three daily shopping emails or newsletters

• More than six in 10 respondents reported subscribing to more of these emails now than last year

Popularity

• Top three daily deals purchased are dining (45%), clothing/apparel and shoes (36%) and entertainment/event tickets

• 45% of daily deal recipients pass along the emails to friends and family at least weekly

Effectiveness

• 65% returned to patronize the businesses whose daily deals they had purchased

• 60% bought something they were on the fence about

Source: E-marketer February 2011 Survey & Lightspeed Research 2011

We wanted to

know more…

Our Qualitative Approach

Methodology:

Conducted 40 one-on-one online

conversations to uncover

qualitative insights

Audience:

Men and woman ages 18+ who

have used a daily deal promotion

within the past 6 months

Qualitative Objectives

Understand why and how consumers are using Daily Deals

Explore the impact Daily Deals have on consumers’ brand

perceptions

Uncover the implications of

brands’ participation in Daily Deals

What did we learn about Daily Deals?

sophistication

empowermentperceived value

Sophistication

• Consumers feel like they

are in on an exclusive

secret

• Consumers feel like they

are being invited into the

brand experience

• Consumers feel like savvy

identifiers of bargains

• Consumers feel they are

appreciated and their needs

are recognized

“It makes me feel really good … like I have

accomplished something. That I was a smart enough to

save that much money as opposed to paying full price.”

M, 45-54

Sophistication: What we heard…

Empowerment

• Consumers take more risks

to experiment with new

products

• Consumers are willing to

take a leap of faith if a

Daily Deal is structured

properly

• Allows consumers to do

what they love more often,

spontaneous indulgence

• They feel there is no need to

shop without deals

Empowerment: What we heard

“Instead of trying something for the first time at full

price, you can try something at a reduced rate…It

opens my eyes to places and restaurants that I never

knew existed.” M, 25-34

It shows you what's on sale. it shows you what brands

are being offered. It puts you in control to say yes or no

to a particular item or brand and I love it. F, 45-55

Higher Perceived Value

• Savings are more

significant than traditional

sales, coupons and

discounts

• More relevant than other

discounting methods

• Higher quality and variety

of products and services

• Convenience

Perceived Value: What we heard

“Daily Deals offer better products and services at a

much deeper discount than the coupons offer. Daily

Deals are offered at places that don’t generally offer

coupons as well.” F, 45

“It’s still saving money like any coupon does. But

I feel like the offers are much better than

traditional paper coupons that you get through

snail mail.” M, 25-35

How do consumers view participating

brands? As appreciating and

recognizing their needs

Doesn’t cheapen or diminish the

integrity of the brand

As proactive, progressive and on

the cutting edge

Brand perceptions: What we heard

“They are really trying to market themselves

well and get more customers in the door…I

think they are being more progressive and

really trying to use new types of marketing. It

impresses me when companies go outside

their comfort zone and try new marketing

methods.” M, 25-34

What does this mean for your brand?

Daily Deals are here to stay, make them part of your

marketing arsenal

Daily Deals are enabling consumer to feel spontaneously

indulgent, use Daily Deals as a way to surprise and

delight, but don’t over do it (the discount)

Daily Deals might sound simple, but they are complex

and combine social, emotional and rational benefits

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Questions

Rob Tregenza

rtregenza@imoderate.com

303.928.8423