Vancouver, BC – Online group coupons are becoming a hot marketing
tool for businesses– but do they actually work to build loyalty? According to a recent issue of
the Ipsos Canadian Inter@ctive Reid Report, Canadians are flocking to online
coupon websites to try new companies, experience new products or services, and save on
purchases. And customers aren't the only ones reaping the rewards.
Websites such as Groupon.com and WagJag.com appear to be laying the groundwork for
building loyal customer bases. Among those who have redeemed an online group coupon in
the past, six in ten (57%) would be likely (18% very likely, 39% somewhat likely) to return to
the same company without a coupon or gift certificate. In fact, a majority (62%) of those who
had bought an online coupon in the past have then gone on to make a full priced purchase
from the business they first became familiar with through the group coupon site.
"In the current economic climate, Canadians are wary of trying new things," says Catherine
Dawson, Senior Vice President with Ipsos Reid in Vancouver. "With online group coupons,
consumers are introduced to activities, restaurants, and other products and services they
might never have tried before but the risk to them is lower because of the discounts being
offered. Especially for small businesses and start-ups, this is a great way to increase exposure
of their brand, bring in new clients, and ultimately help in building loyalty."
Online group coupons are clearly a way that Canadian consumers are branching out to try
new businesses. Eight in ten (83%) who have used a group coupon in the past have used a
business for the first time because of an online group coupon. A similar proportion (82%) has
tried a product or service they wouldn't have otherwise if not for the coupon. Among the
various categories of online group coupons bought, the most popular are restaurants (51% of
group coupon users), personal services (27%), and grocery items (25%).
When it comes to specific sites, Groupon.com dominates the industry with just over half
(54%) of online Canadians aware of the site, followed by WagJag.com (27%), Dealfind.com
(19%), LivingSocial.com (18%), Dealoftheday.ca (12%), and TeamBuy.ca (12%). Among
those aware of group coupon sites in general, six in ten (61%) subscribe to receive emails or
other alerts for notifications of new deals from the sites.
"Groupon.com is an industry leader driving interest in online group couponing - the brand
is almost becoming synonymous with the category and helping boost overall awareness,"
This release is based on the findings of an Ipsos Reid syndicated study, The Ipsos
Canadian Inter@ctive Reid Report, fielded August 24th to 29th, 2011 and released in 2011-
Issue 4. This online survey of 840 Canadian adults was conducted via the Ipsos Online Panel.
The results are based on a sample where quota sampling and weighting are employed to
balance demographics and ensure that the sample's composition reflects that of the actual
Canadian population according to Census data. Quota samples with weighting from the Ipsos
online panel provide results that are intended to approximate a probability sample. An
unweighted probability sample of this size, with a 100% response rate, would have an
estimated margin of error of +/- 3.4 percentage points, 19 times out of 20.
For more information on this news release, please contact:
Senior Vice President
About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public
opinion research, and research partner for loyalty and forecasting and modelling insights. With
operations in eight cities, Ipsos Reid employs more than 600 research professionals and
support staff in Canada. The company has the biggest network of telephone call centres in the
country, as well as the largest pre-recruited household and online panels. Ipsos Reid's
marketing research and public affairs practices offer the premier suite of research vehicles in
Canada, all of which provide clients with actionable and relevant information. Staffed with
seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid
offers syndicated information or custom solutions across key sectors of the Canadian
economy, including consumer packaged goods, financial services, automotive, retail, and
technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-
based market research group.
To learn more, please visit www.ipsos.ca.
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