Sorry!! The article you are trying to read is not available now.
HOT TAGS:  

Infographic: The Influence of Daily Deal Sites

Print comment Post Comments
GET YOUR GROUPON
DailyFeed
Who doesn't love a sale?

OK, besides store employees and those trying to find a parking spot.

What began as online discount codes and Stormy Simon spots for Overstock.com has now evolved into a fleet of "daily deal" websites like Groupon, LivingSocial, and Google Offers. Providing one ore more limited time discounts each day -- and on a variety of iPhone, Android, and BlackBerry apps -- these sites have been generating an explosion in new customers, to the tune of over 26 million people who have taken advantage of such an offer.

Groupon leads the pack with with nearly nine out of ten users, LivingSocial comes in second with 62.3% of the users, and there's a big drop-off to Restaurant.com and BuyWithMe who command 23.8% and 22.3%, respectively.

At the risk of perpetuating the stereotype that those gals love a sale, 56% of those who frequent daily deal sites are women, leaving 44% to the gents. Ladies hold claim to 64% of all the vouchers, use an average of four services at a time, and have roughly 10 deals gathering dust in their inboxes.

Which brings up another side to those sites: unused vouchers.

As many as 20% of vouchers expire before they can be used, adding up to a whopping $1.2 billion in wasted stabs at a discount. But like the unwanted gift cards to Waffle Hut and Nothin' But Sconces, secondary deal sites -- like CityPockets -- allow unhappy customers to resell their vouchers to others. Yes, you may not get the full value, but 41% of those who try break even, and 25% make a profit!

Daily deal sites opened up a whole new world for those looking for bargains and businesses seeking new customers. The aforementioned CityPockets put together a beautifully detailed infographic that covers this relatively new marketplace.

Click for Larger View

(See also: Apple Slashing iPad Holiday Orders by 25%, Says Report and iPhone 5 Defect Could Limit Supply, Says Report)

For an investment angle on these and many more tech stocks, take a FREE trial to the TechStrat Report by Sean Udall.
POSITION:  No positions in stocks mentioned.

TICKERS