Groupon Survey: How People Use the Daily Deals Giant

Business Insider recently completed a survey of Groupon users.  The survey uncovers some interesting insights about how people use the emerging daily deals giant.

Among the 86% of respondents who use Groupon, 50% have joined in the last 6 months and 80% have joined in the last year, highlighting the blistering pace at which the company has grown.

The relative youth of the company, is also reflected in users' redemption history to date.  55% of users have redeemed coupons 1-5 times, 25% have redeemed more than 5 and 20% say they have never redeemed.

However, Groupon may need to re-think their approach, as a full 35% of respondents say they almost never open their daily emails and 40% say they open fewer emails than they did at first.  Still, considering Groupon's growth rate and masses of users, if they are able to engage 25% of their user base on a regular basis, this might be more than enough to build a sustainable business.

Related, and perhaps even more clear than the above point, 70% of users say they are likely to redeem less Groupons in the future than they did in the past.  This may indicate that Groupon needs to continue to improve its offering to stay relevant.  Or, it could simply be that the majority of users respond to specific deals and have no intention of continuing to user the service, once they have used the initial deal.  Crucially, this still leaves Groupon with 30% of its massive user base that think they will use the site more in the future than in the past.

Perhaps even more indicative of how the deals space is all about the deals on offer and very little about loyalty to the deals intermediary, only about 25% say that they subscribe to Groupon only, while the remainding 75% subscribe to more than one service. 

Based on the survey findings, we can clearly see that the deals space is still a very young business.  Although Groupon is the clear market leader, it remains a very competitive space, with limited customer loyalty and little certainty about what business model will win the day.