Marketing Study Results: A Business Owner Must Read!

This is by far the most relevant study conclusion I've seen in a long time.

But if your looking for some serious information, check out 4 Keys to building customer loyalty.

Living Social: How to make your deal a Huge Success

So you've decided to give the "Daily Deal" trend a shot? Not a bad idea. Without a doubt Living Social (or Groupon) is a powerful way to bring new customers through your doors. The challenge, however, is to convert these new visitors into loyal returning customers.

The fact is, for most businesses, the deal itself is a loss (unless you're fortunate enough to get them to spend well above the value of the coupon on their first visit.) So it is critical to have a plan in place to get these "daily dealers" to return.

But before you devise a plan, you first need to know more about the Daily Deals Consumer.

Customer Profile

Edison Research performed a 2012 study on the behaviors and demographics of Americans that use "Daily Deal" services. The full presentation is below, but here are a few key findings:

• 49% are 25 - 44 years old
• 66% are women
• 35% income over $75k
• 65% have an iPhone or Android
• 85% are on Facebook
• 302 - the average number of Facebook Friends they have
• 35% use social media several times per day.

And here is the key observation discovered by Edison Research:

"The daily deals space encourages trial, but loyalty remains an opportunity" 

The Strategy

At first glance, the answer would appear as simple as having a loyalty punch card program. After all, "Daily Deals” user income figures and their higher propensity to join a premium service like AmazonPrime suggests that “Daily Deals” users are not price conscious, but value-seekers. In fact, when used in conjunction with a daily deal promotion, loyalty programs increase the likelihood of return business 70%.

But that's only part of the story...

These "value-seekers" are also tech-savvy and socially connected. They don't want a punch card to stuff in their wallet, they want apps. Did you know 64% of app users view brands with mobile apps more favorably?  So if you want to impress your new influx of customers have an app.

Not only does this feed into their tech-savvy profile, but you also have the ability to connect to their social network -- 302 people strong. That's because an app give you the ability to have customer "punches" posted to their Facebook wall. For example, "I just earned a free appetizer at Lou's Grill!"

Additionally, an app will allow you to send SMS text messages to further your marketing message. Imagine being able to send this text to hundreds of customers, "1/2 price drinks during Ravens/Steelers game Sunday at Lou's Grill." That's powerful marketing.

With all of this data, the answer is clear. By implementing a mobile rewards app, you will increase the probability that your tech-savvy value seekers will return. 

To learn more about the BmoreLoyal white-label app (which costs less then a cell phone bill) take the tour. And if you're currently running a Living Social or Groupon deal (or will be soon) we'll let you try it free for 30 days. You have nothing to lose and everything to gain.

Oh, and here's the Edison Research Report:

The Daily Deals Consumer 2012 from Edison Research