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Perspective: Consumer Experience with Daily Deals

Who doesn’t like to save money? Whether it’s for discounted tickets to see Tony Bennett or a half price massage, saving money is always welcome. According to a recent survey conducted by First Data, 43% of online consumers have purchased a daily deal or group discount voucher. Overall, their experience has been extremely positive with two-thirds of the users saying they would likely return to the retailer or restaurant. The Daily Deal is a win-win for both consumers and retailers. It allows consumers the opportunity to try new retailers, restaurants, services and experiences at a much lower financial risk while generating new revenue and potential new customers for the merchants. 61% of consumers said they would not have gone to the retailer or restaurant if it had not been for the deal and 51% of deal purchasers saying they think more highly of a brand or company that offers a deal.

While 70% of deal users believe they received the same quality of service that they would have without the deal, 7% felt that the quality of the service they received was poorer because of the deal. Consumers indicated they may have received a bad table or that the server “rolled their eyes” when the voucher was mentioned, probably believing they might receive a lower tip from the “deal seeker.” In either situation, the consumer is unlikely to return to the establishment because of the perceived poor service. Merchants need to realize that every customer experience is important and will determine whether that customer returns and becomes a new, loyal customer.

You can read more about our findings in Consumers Going Mobile: The Transformation of Payments.

Sharon Brant is First Data’s Director of Market Intelligence.