Ipsos Study Shows Online Group Coupons Can Help Build Brand Loyalty

Six in Ten (57%) Users Likely to Revisit a Retailer Without A Coupon

Thursday, February 09, 2012

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," adds Dawson.

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:

Catherine Dawson
Senior Vice President
Ipsos Reid
(778) 373-5003

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.

About Ipsos

Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe. Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999. In 2010, Ipsos generated global revenues of €1.140 billion ($1.6 billion U.S.).

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Ipsos Study Shows Online Group Coupons Can Help Build Brand Loyalty


Karen Beck
Associate Vice President, Canada
Ipsos Marketing