One of the criticisms of daily deals is that they only appeal to indiscriminate spendthrifts who will go wherever they get the best price. Sherri Kimes, professor of operations management at Cornell University School of Hotel Administration, has found that statement to be mostly untrue. “About 20 to 25% of the daily deal users really were cheap. They weren’t spending anything more than the deal amount, they weren’t tipping; they were horrible. But the rest of them—that’s 75 to 80%—were spending more than the value of the deal, they were tipping on the gross amount rather than the after-discount amount. Those are the ones you want.”
Deals and loyalty are inextricably tangled up; in its October 2012 report, the National Restaurant Association found that 66% of consumers would be more likely to visit restaurants offering loyalty and rewards programs. Read the rest at eMarketer.
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