Wednesday, June 22, 2011

35% of Deals Customers are "New Business"

It's a reasonable question whether consumers using daily deals and social shopping services represent new business, or simply attract regular customers while cutting profit margins.

A new study by ForeSee Results suggests that 35 percent of daily deals shoppers are actually new business for the retailers using the deal programs.

According to ForeSee, 38 percent of the people purchasing daily deals were already frequent customers of the merchant in question, 31 percent are brand new business, and four percent were former customers, which translates to 35 percent new business.

Furthermore, since the remaining 27 percent are described as "infrequent customers," you could even argue that, in total, 62 percent of daily deal buyers are the people merchants are most keen to reach.

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