Direct Line Blog

Email open rates on the rise for Groupon, LivingSocial

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Groupon's and LivingSocial's email open rates continue to trend upward, according email and social analytics firm eDataSource, which provides analytics for the two daily deals companies. eDataSource found that Groupon's open rates have ticked up from roughly 13.75% in July to just under 15% in September while LivingSocial's hopped from roughly 13% in July to more than 15% in September.

The growth in open rates comes despite a slowdown in U.S. subscriber acquisitions. Groupon and LivingSocial peaked in late June/early July at less than 60 million and more than 50 million subscribers, respectively, but each has since leveled off closer to the 50 million mark, according to eDataSource.

What gives? No idea, but I have a few guesses.

One: Folks are back from summer trips and more routinely open emails.

Two: Groupon and LivingSocial started doing a better job of identifying the day's most appealing deal to head the subject line.

Three: Groupon's and LivingSocial's Q3 open rates experienced latent effects of the companies' Q2 acquisition increases, i.e. a share of the new subscribers purchased a deal leading them to more frequently open subsequent emails.

Four: Folks are gearing up for their holidays and want to save as much money as possible, so they're scouring everywhere for savings/gift ideas.

My money is on Guess #4.
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