How Canadians use group buying sites

Posted by on Feb 16, 2012 in Marketplace

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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.

Written by Brian Blum

Brian Blum covers Canada and Israel for Classified Intelligence Report, and contributes to our special reports and research projects. With the AIM Group since 2004, he previously held the real estate and automotive beats. He is the president of Blum Interactive Media, specializing in writing and multimedia content development for online, print, video and audio. His clients include newspapers, universities and non-profits. He moved to Israel from the San Francisco Bay Area in 1994 and lives in Jerusalem, where he writes a popular blog about “normal” life in the Holy Land, appropriately titled “This Normal Life.”