New research from the Canadian publication Ipsos Canadian Inter@ctive Reid Report provides insight into how consumers in the Great White North are using group buying sites like Groupon and WagJag. The main take-away: coupon sites build post gift certificate brand loyalty.
Ipsos found that “among those who have redeemed an online group coupon in the past, approximately six in ten (57 percent) would be likely (18 percent very likely, 39 percent somewhat likely) to return to the same company without a coupon or gift certificate.”
Other findings: 83 percent of Canadians who have redeemed a group coupon in the past have used a business for the first time because of that online coupon. A similar proportion (82 percent) has tried a product or service they wouldn’t have otherwise if not for the coupon. Among the various categories of online group coupons bought, the most popular are restaurants (51 percent of group coupon users), personal services (27 percent), and grocery items (25 percent).
While these numbers come from a survey of Canadian consumers, the percentages are likely similar to those in the U.S.
The researchers also asked users to indicate which sites they were most aware of. Groupon.com dominates the industry with just over half (54 percent) of online Canadians aware of the site, followed by WagJag.com (27 percent), Dealfind.com (19 percent), LivingSocial.com (18 percent), Dealoftheday.ca (12 percent), and TeamBuy.ca (also 12 percent).
Among those aware of group coupon sites in general, 61 percent subscribe to receive emails or other alerts for notifications of new deals from the sites.