June 23, 2011, 4:19 PM

Groupon holds a strong lead over LivingSocial in daily deal popularity

ForeSee says that shows the strong appeal of Groupon as some question its market value.

Stefany Moore

Associate Director of Research

Lead Photo

More evidence that Groupon is the daily deal powerhouse: A new report from customer satisfaction research firm ForeSee Results gives Groupon a nearly two-to-one lead over top rival LivingSocial.

ForeSee based its finding on a spring survey of more than 22,000 shoppers who frequent the web sites of the top 100 merchants in the Internet Retailer Top 500 Guide; nearly two-thirds of respondents said they subscribe to offers from at least one daily deal operator, in itself a sign of how quickly Groupon and its imitators have captured consumers’ attention.

51% of survey respondents said they subscribe to Groupon, while 24% subscribe to Living Social. 14% use Google Offers and 10% seek out deals via Woot.com, which Amazon.com bought last year.

Additionally, about two-thirds of daily deal subscribers had bought a deal within the previous 90 days, and 89% of those respondents had redeemed their vouchers during that time, the data show.

Of the consumers buying daily deals, 38% were frequent customers of the merchant offering the voucher and 31% were new customers. 27% were infrequent customers and 4% were former customers.

Larry Freed, CEO of ForeSee, says the research combats recent skepticism from analysts about the sustainability of Groupon’s business model. “I don’t think anyone should be signing any death certificates yet,” Freed wrote in a blog post yesterday. “Groupon and LivingSocial do bring in new customers, and that should be welcome news to both retailers and daily deal companies alike.”

Earlier this month, Groupon announced plans for an initial public offering

Comments | 2 Responses

  • nice

  • I didn't see one thing about customer satisfaction rankings. Satisfied with what? Customer service? Quality of deals? I did see that Groupon has a higher market share but I think we all knew that. Very poor headline.

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