New Research by Borrell Associates & Presslaff Interactive Suggests ‘Deals’ Space Nowhere Near Burned Out

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A survey of 39,040 consumers and over 700 local advertisers shows high growth potential for coupons & deals programs. Consumers love them, and local advertisers are reporting a significant amount of new business from "deals" programs that actually becomes repeat business.

"When advertisers figure this out, you may see a lot of bandwagon-chasing among the other 81% of business owners who haven't tried it out yet," said Ruth Presslaff of Presslaff Interactive Revenue.

If you think there’s trouble in Dealville, think again. By an overwhelming margin, a survey by Borrell Associates and Presslaff Interactive of nearly 40,000 consumers indicates they not only love the deals, but they’re also eager to sign up for more. And a simultaneous survey of more than 700 local advertisers shows that deals are driving a significant amount of new business as well as repeat business from those new customers.

“The buzz lately about ‘deals’ being burned out appears to be a bit off base,” said Gordon Borrell, CEO of Borrell Associates, which conducted the survey in August and September with Presslaff Interactive. “The headlines about these programs putting advertisers at risk might just be a reflection of some businesses being unprepared or making bad deals. The survey indicates that a significant percentage of advertisers are seeing business they ordinarily don’t get, and that there’s a lot of growth potential.”

The survey offers insights into what consumers and advertisers are thinking about this explosive marketing phenomenon. While the research shows that consumers overwhelmingly love deals, the response from advertisers is more tempered. “Advertisers want more than they’re getting with ‘deals,'“ said Ruth Presslaff, president of Presslaff Interactive.

The survey was launched through local media companies across the U.S., polling consumers who frequented local media websites and small and medium-sized businesses (SMBs) who advertise or participate in deals and coupons programs. It ran Aug. 1 through Sept. 9 and polled 39,040 consumers and 729 advertisers. The findings will be highlighted during a webinar on Thursday, Oct. 13, at 2 p.m. Eastern, 11 a.m. Pacific. For info, visit http://www.borrellassociates.com.

Among the findings:

            •    91% of the consumers said they’re likely to register for other deals programs.
            •    44% have signed up for four or more email lists.
            •    81% of advertiser respondents have not yet participated in a deals program
            •    Of those advertisers who have, the average deal generated 191 sales
            •     45% of the sales generated from deals come from new customers, and 22% of them become repeat customers.

“That last bullet point need underscoring,” Presslaff said. “If the average deal means 191 redemptions, that means each deal brings 20 new customers to a business. If one customer means $500 in annual sales to a dress shop or restaurant, that’s $10,000 in brand-new business for every deal launched. When advertisers figure this out, you may see a lot of bandwagon-chasing among that other 81% who haven’t tried out deals yet.”

The survey also asked questions about the frequency with which consumers preferred to see deals (answer: weekly, not daily), the most popular deals and coupons programs used, the types of business establishments most likely to participate in such programs, and the reasons advertisers and consumers participate.

To join the webinar or see full findings, visit http://www.borrellassociates.com. For more information, send email to info(at)borrellassociates(dot)com or call 757-221-6641.

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