Woman holding shopping bags in front of face

Have you ever wondered why and how consumers use daily deals?

We recently conducted a study with research firm Chadwick Martin Bailey, to find out. The study analyzed the behavior of 1,433 consumers ages 18 and older in the United States.

Two of the more important findings in this research were that word-of-mouth is key for the success of a deal and that personal endorsements drive deal purchases.

We also found that over one third of consumers are more likely to buy a deal from a local small business than a national chain. Great news for local small businesses!

Consumers are also willing to share deals that are great, regardless of whether they are a current customer.

Here are 10 key findings from the study:

1. Consumers who sign up to receive daily deals end up purchasing them (tweet this)

2. Recommendations from friends make consumers more likely to purchase a deal from an unfamiliar small business (tweet this)

3. Personal endorsements drive deal purchases, especially for women (tweet this)

4. People are willing to share a deal if it’s great, regardless of whether they are a customer (tweet this)

5. More than 1/3 of consumers are more likely to buy a deal from a local small business (tweet this)

6. For nearly 60% of customers, even a good deal experience doesn’t automatically equal loyalty (tweet this)

7. More than twice as many consumers share deals via email than on social networks (tweet this)

8. Deals for restaurants and entertainment are the most commonly shared (tweet this)

9. 92% of consumers think local deals are here to stay (tweet this)

10. Consumers think deals help attract new customers to local businesses (tweet this)

What does this mean?

This study also makes it clear that proximity matters, and that local merchants have an advantage over big brands. More than a third of consumers are more likely to buy deals from local businesses.

However, for nearly 60 percent of deal buyers, a good experience does not automatically translate into loyalty. That’s why it’s absolutely critical that merchants stay in touch after the deal. Amazingly, many deal vendors sabotage this effort by refusing to give merchants the contact information of their buyers.

The true value of running a deal for a small business is bringing in new, repeat customers, not one-time deal seekers. Without the tools to follow up, unfortunately, that’s what many of them become.

Read and download the full report.

With SaveLocal from Constant Contact, small businesses can finally get great new customers from local deals, and make money doing it. Check out our FREE webinar, “Getting Started with SaveLocal.”