New Research Suggests 'Deals' Space Nowhere Near Burned Out
October 10, 2011 at 6:24 AM (PT)
If you think there’s trouble in "Dealville," think again, says BORRELL ASSOCIATES. By an overwhelming margin, a survey of nearly 40,000 consumers indicates they not only love the deals that many radio stations offer, 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 BORRELL ASSOCIATES CEO GORDON BORRELL. BORRELL 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," noted BORRELL. "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 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 PRESSLAFF INTERACTIVE Pres. RUTH PRESSLAFF.
Among the findings of the survey:
* 91% of the consumers said they’re likely to register for other deals programs.
* 44% have signed up for four or more e-mail lists.
* 81% of advertiser respondents have not yet participated in a deals program
* 48% said they would participate in another deal; 14% said they would not
* 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 'repeat' 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’re likely to see a lot of bandwagon-chasing among that other 81% who haven’t tried out deals yet."
For more info, go to www.borrellassociates.com.