Businesses report satisfaction with group buying experience

group-buying sites on computer screen

An independent study has found 95 percent of businesses that have sold their products or services through group buying sites were happy with the experience, and many would do it again.

According to a survey by Telsyte, the majority of business said their satisfaction levels were so high, they’d run another group buying campaign in the future.

The Telsyte results mirror those found in a LivingSocial survey of 211 merchants, in which 95 percent said advertising via daily deal sites drew more customers through their doors and 80 percent said the deal brought the most new customers of any marketing channel they had tried before.

According to Telsyte Senior Research Manager Sam Yip, the study has dispelled a number of myths about business use of group buying.

“A persistent myth about the group buying phenomenon is that sellers are generally dissatisfied with the outcomes of group buying campaigns; however, these results show advertising on a group buying site presents a real opportunity for Australian businesses.”

Telsyte’s Online Group Buying Merchant Study 2011 was conducted last month and was based on a random survey of 359 businesses across all leading group buying sites in Australia. The survey was conducted with a broad range of merchants across all categories of purchase.

2 thoughts on “Businesses report satisfaction with group buying experience

  1. e.g. John Smith

    There is no good reason why daily deals campaigns SHOULDN’T work for businesses, nor why they shouldn’t work for customers. The problem is, some daily deals companies don’t educate their clients as to the marketing potential beyond the initial sale, and they also don’t help them calculate the optimum number of deals for the campaign to be successful.

    There is an abundance of daily-deals-gone-wrong reports on the Internet and they are usually the result of the abovementioned flaws in the concept. Too many times, deals campaigns are sold to business owners on the promise of a quick injection of cash flow. The businesses are then left to either cope with unsustainable inundation or come up with quick strategies to gain customer loyalty.

    As a marketing copywriter and one who has followed the evolution of the group buying/daily deals concept since it arrived in Australia, I am astounded at the lack of follow-through marketing that businesses implement when they run a deal. I have gained new clients as a result of simply asking them the question: “What are you doing to turn these deal customers into repeat customers?” For some, it seems to be a revelation!

    Good to see an article that shows the upside of businesses’ experiences with daily deals. There is much to be gained by all three corners of the triangle (daily deals companies, businesses running deals and customers buying deals) when executed correctly from planning to follow-through.

    Reply
  2. e.g. John Smith

    There is no good reason why daily deals campaigns SHOULDN’T work for businesses, nor why they shouldn’t work for customers. The problem is, some daily deals companies don’t educate their clients as to the marketing potential beyond the initial sale, and they also don’t help them calculate the optimum number of deals for the campaign to be successful.

    There is an abundance of daily-deals-gone-wrong reports on the Internet and they are usually the result of the abovementioned flaws in the concept. Too many times, deals campaigns are sold to business owners on the promise of a quick injection of cash flow. The businesses are then left to either cope with unsustainable inundation or come up with quick strategies to gain customer loyalty.

    As a marketing copywriter and one who has followed the evolution of the group buying/daily deals concept since it arrived in Australia, I am astounded at the lack of follow-through marketing that businesses implement when they run a deal. I have gained new clients as a result of simply asking them the question: “What are you doing to turn these deal customers into repeat customers?” For some, it seems to be a revelation!

    It’s refreshing to see an article that shows the upside of businesses’ experiences with daily deals. There is much to be gained by all three corners of the triangle (daily deals companies, businesses running deals and customers buying deals) when executed correctly from planning to follow-through.

    Reply

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