Daily Deals Aren’t Dead: 53% of Small-Business Owners Say They’re Good for Getting Customers

Daily deals have been battered by nightmarish stories and the struggles of the industry’s two leading players, Groupon and LivingSocial. But in the midst of what seems like a valley leading to certain death, stakeholders that are fond of daily deals can take courage, thanks to a recent study from Constant Contact.

The company surveyed 1,305 small businesses and nonprofits and found that daily deals are seen as the top technology tool for attracting new customers. More specifically, 53 percent of respondents say daily deals are a technology tool that’s effective for attracting new customers.

Internet ads followed with a 51 percent response, while 38 percent say the same of Web listing sites, 37 percent say the same about social media ads and 29 percent say the same about online coupons.

It’s no news that deals offering heavy discounts are effective for drawing new customers to a business. “”But perhaps more than any other tool, they need to be done right or they can be highly detrimental to a small-business owner,” says Dave Gilbertson, vice president and general manager of SaveLocal, Constant Contact’s tool enabling small businesses to run their own deals. “That means giving small businesses greater control.”

The survey also found that 60 percent of respondents say online survey tools are the most effective for engaging existing customers, followed by digital loyalty/frequent-shopper tracking systems (56 percent), customer relationship management systems (46 percent) and email marketing (45 percent).

When it comes to tools effective at both attracting and engaging customers, 77 percent of respondents say websites are best, followed by 69 percent who say blogs, 60 percent who say social media, 59 percent who say video hosting sites (e.g., YouTube), 52 percent who say event management tools and 50 percent who say email marketing.

“This fairly even distribution of marketing tools indicates that a complement of in-person and online interactions, supported by the foundation of email, and amplified by social media, creates effective customer awareness and sustainable connections,” the company notes.