eMarketer: Group buying websites continue to thrive in the restaurant industry

According to a report by eMarketer, when daily group buying emerged during the economic recession, this discount promotion method attracted a large number of catering companies and users to participate. With the economic recovery, group buying has not faded and has gradually become a part of the catering industry.

Users who are looking for good deals will never miss the group buying opportunities provided by merchants. According to AYTM's research, in March 2013, 38.2% of American Internet users subscribed to at least one group buying site, which was lower than 45.3% in September 2011. However, subscription does not mean actual conversion. Many users will not buy the products pushed in the email, but 1/3 of them said they would buy them frequently.

A November 2012 survey by Mintel found that 71% of users chose a restaurant because of a coupon or special offer.

One of the controversial points about group buying is that these sites attract only a group of people who only care about the best price. But Sherri Kimes, a professor at Cornell University, found that this is not true. He pointed out that about 20-25% of group buying users are bargain hunters who will not spend more than the group buying amount, but the remaining 75% to 80% will spend more than the group buying amount, and these users are what merchants want.

Group buying and loyalty programs are inextricably linked, with the National Restaurant Association reporting in October 2012 that 66% of customers would prefer to visit restaurants that offer loyalty and rewards programs.

Users’ demand for convenience has stimulated the growth of mobile coupon providers, and the mobile Internet can make the delivery of discounts smarter.

via: emarketer