Despite growing perception that group buying is bad for business, the latest Telsyte study has shown that Australian businesses are experiencing high satisfaction levels with their group buying campaigns with many saying they would run another campaign.
Telsyte’s research showed 95 per cent of businesses who have sold products through group buying sites were happy with their promotions, with 85 per cent indication they would run another campaign once they have tried the service.
“There is still plenty of room for group buying sites to strengthen and build long term relationships with businesses. Most businesses, despite indicating that they will run another deal, are considering using a different site,” Sam Yip, Telsyte senior research manager, said.
With the industry growing 72 per cent last quarter, Telsyte estimates group buying in Australia will be worth about $400 million by the end of 2011.
The study also found that for more than one in five businesses that have run group buying deals, online group buying was the first form of mass marketing they have ever used.
“Now that we have identified inexperience in mass marketing amongst businesses, the group buying industry needs to move beyond merely closing deals with businesses, but start providing education, feasibility studies, and campaign services before, during and after the deal has run,” Yip said.
The expected results of running a group buying campaign are strong with the studyfinding more than two-thirds of businesses acquired new customers, increased foot traffic and increased overall customers as a result of a group buying campaign.
“The group buying market is proving to be a sustainable marketing sector and a real opportunity for Australian businesses” Yip said.
The Online Group Buying Merchant Study 2011 was conducted in September 2011 and was based on a random survey of 359 businesses across all leading group buying sites in Australia. deals, online group buying was the first form of mass marketing they have ever used.