Digital Marketing, Part 2: Deal-Seeking Behavior

Digital media offer brands and retailers a myriad of new ways to fortify their relationships with consumers by providing convenient ordering, responsive customer service, useful information and even entertainment. But nothing has proven to be as popular among digitally connected consumers as a hot bargain.

It's been nearly a year since Forbes ran the headline, "Meet the Fastest Growing Company Ever." Yes, they were referring to Groupon, the localized daily deal innovator that four months later rejected a $5 billion offer from Google. Since that time, other services, such as Gilt, LivingSocial and Bloomspot, have also gained ground. And Google, the spurned suitor, has launched a service as well.

Estimates are that by the end of this year, nearly half of U.S. adult internet users will have redeemed an online coupon or code.¹ While this may be a symptom of recessionary times, even many luxury brands are coming to the conclusion that deal offers -- delivered in the most convenient form possible -- can be invaluable for enhancing customer loyalty.

Marketers looking to catch this new wave of enthusiasm by deal-seeking consumers are often working off assumptions that mostly younger, more tech-savvy shoppers are involved, or perhaps peg usage to more affluent segments. However, SymphonyIRI Group's original MarketPulse research shows a more complex picture.

In its recent Point of View paper, SymphonyIRI does report a much higher prevalence of digital couponing and deal-seeking among young consumers, suggesting an opportunity for brands and retailers to cement positive, long-term relationships with this influential group. The opportunity is further sweetened by the fact that younger consumers are much more likely to share news of a deal among their social networks via Facebook, Twitter, Foursquare, personal blogs, etc.

However, slicing the demographic pie by income level reveals more subtle distinctions. It appears that wealthier shoppers are visiting online deal sites such as Groupon, Woot.com, LivingSocial and Gilt more often, as many of these services appeal to the luxury market. While the usage of digital coupons is more common among lower income groups, the affluent aren't far behind, undoubtedly willing to take the time to save a dollar or two here and there as well.

Download the complete Point of View report from SymphonyIRI Group...

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