Daily deals sites best marketing for service SMEs

MEDIA RELEASE
31 May 2011

Daily deals sites best marketing channel for service-based SMEs, new survey shows

Survey figures released this week by LivingSocial (livingsocial.com) – the online source for handpicked experiences at a great value – suggest the impact this new marketing channel will have in the New Zealand SME market.

In the survey of 200 Australian merchants who listed offers with daily deals sites, including LivingSocial, more than 95 per cent said daily deal sites brought more customers through their doors. Eighty per cent said daily deal sites brought the most new customers when compared with Google search advertising, local newspaper advertising, Yellow Pages advertising, direct mail, radio, TV and PR.

The survey also revealed:

• 69% of respondents rated daily deals sites as the best channel they had used so far or at least above average compared to the other alternatives.
• 80% said they would use daily deal sites again for their marketing
• 58% said that they will stop using traditional print advertising in local newspapers.
• 41% said they would stop using Yellow Pages advertising
• 33% saying they would stop using direct mail to households.

Colin Fabig, CEO of LivingSocial Australia and NZ says, “This survey of our merchants reflects the general industry and shows the strength of daily deals sites as the leading medium for local merchants to reach new customers.”

Colin says, “These findings make sense as the daily deal site channel is a fully measurable and accountable media channel. There are no risks and upfront costs to the service; it’s no wonder that small businesses are moving their marketing strategy from traditional channels into LivingSocial, which offers access to a massive database of new customers combined with careful advice on how to get the best from a deal medium.”

Other benefits of using daily deals sites reported by respondents include: generating word-of-mouth referrals (for 68 per cent of respondents), increased brand awareness and exposure (89 per cent), increasing business during quiet times (62 per cent) and repeat bookings (53 per cent).

About Living Social
LivingSocial adds surprise to every day with handpicked daily deals you can share with friends. Members enjoy at least 50% off on the best local experiences. Local business owners get an easy and cost effective marketing tool to attract new, loyal customers. Based in Washington, DC, the international brand has saved its nearly 30 million subscribers more than half a billion dollars in 260+ markets worldwide.

ENDS

© Scoop Media