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July 30, 2013 / The_Mike_Johnson

Do Daily Deals Still Matter for Dining?

So I am reading through “Do Daily Deals Still Matter For Dining? What’s Working Now and What’s Coming Next” June 2013 eMarketer report and here is what I feel you should take from it:

The two most popular services are Groupon (61% of North American market share), and LivingSocial (17% share) according to Yipit from first quarter 2013 with LivingSocial moving into events and ticketing.

Other services include Google Wallet, Square Wallet and LevelUp. I have been receiving email offers from my Capital One credit card since these companies offer deals based on your purchase history.

Those seeking the deals out are seniors and baby boomers according to Riggs.

“One of the criticisms of  daily deals is that they only appeal to indiscriminate spendthrifts who will go wherever they get the best price. Sherri Kimes, professor of operations management at Cornell University School of Hotel Administration, has found that statement to be mostly untrue. Her research found that the majority of diners were good customers.”

“About 20 to 25% of the daily deal users really were cheap. They weren’t spending anything more than the deal amount, they weren’t tipping; they were horrible. But the rest of them—that’s 75 to 80%—were spending more than the value of the deal, they were tipping on the gross amount rather than the after-discount amount. Those are the ones you want.”

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