merchantcircle q4 2011 merchant confidence index
TRANSCRIPT
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1 PROPRIETARY AND CONFIDENTIAL
MerchantCircle “Merchant Confidence Index” Survey Results
December 8, 2011
MerchantCircle.com, a Reply!, Inc. property
800 W. El Camino Real
Mountain View, CA 94070
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2 PROPRIETARY AND CONFIDENTIAL
Survey Methodology
Fielded online November 8th through November 28th, 2011
Invitation to participate sent via email to a random sample of 100,000 MerchantCircle members (out of a membership base of 1.6 million members)
Total responses: 2,555
– 78.0% of responses from merchants with 1-4 employees
– 12.4% of responses from merchants with 5-9 employees
– 8.0% of responses from merchants with 10-49 employees
– 1.7% of responses from merchants with 50+ employees
No incentive was offered to complete the survey
By virtue of the survey methodology (delivered via email and fielded online), responses are expected to come from relatively more “internet-savvy” members
Merchant Confidence Index tracks track four key questions designed to synopsize the prevailing trends among local business owners. The overall index score is based upon a standardized five-point Likert scale.
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3 PROPRIETARY AND CONFIDENTIAL
State of the U.S. economy
How would you rate today’s economy compared to the past twelve months? (n=2,555)
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4 PROPRIETARY AND CONFIDENTIAL
Expectations for future revenue
How do you expect your sales revenues to change over the next three months? (n=2,555)
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5 PROPRIETARY AND CONFIDENTIAL
Expectations for holiday revenue
How do you expect your holiday sales revenues to compare to last years? (n=2,555)
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6 PROPRIETARY AND CONFIDENTIAL
Marketing expenditures
How do you expect your marketing/advertising expenditures to change over the next three months? (n=2,096)
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7 PROPRIETARY AND CONFIDENTIAL
Hiring expectations
How do you expect your company’s headcount to change over the next three months? (n=2,555)
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8 PROPRIETARY AND CONFIDENTIAL
Merchant Confidence Index Calculation
Question Average
Response
Score (on 1-5
Likert scale)
Normalized
Score (on a
100-point
scale)
Change vs.
Q1 2011
Score
How would you rate today’s
economy compared to twelve
months ago?
2.56
12.8 -7.9%
How do you expect your sales
revenues to change over the
next three months?
3.30 16.5 +0.6%
How do you expect your
marketing/advertising
expenditures to change over
the next three months?
2.97 14.9 -0.2%
How do you expect your
company’s headcount to
change over the next three
months?
3.05 15.3 +0.3%
Merchant Confidence Index Score 59.4 -6.0%
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9 PROPRIETARY AND CONFIDENTIAL
Marketing budget
What is your annual ad/marketing budget? (n=2,096)
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10 PROPRIETARY AND CONFIDENTIAL
Adoption of specific online marketing services
Percent answering yes to the following question: “Are you promoting your business with the following websites/services?” (n=2,096)
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11 PROPRIETARY AND CONFIDENTIAL
Marketing channel preference
If you had to put all your marketing time and budget into only one channel, what would it be? (n=2,096)
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12 PROPRIETARY AND CONFIDENTIAL
Interest in purchasing leads in key business categories
Would you be willing to pay a per-lead fee for qualified customer prospect information? (n=488)
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13 PROPRIETARY AND CONFIDENTIAL
Adoption and repeat usage of Facebook Ads
Have you used Facebook ads? (n=2,093)
Would you used Facebook ads again? (n=496)
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14 PROPRIETARY AND CONFIDENTIAL
Perception of Facebook Ads amongst users
Why would you use Facebook ads again? (n=303)
Why wouldn’t you use Facebook ads again? (n=181)
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15 PROPRIETARY AND CONFIDENTIAL
Adoption and repeat usage of daily deals sites
Have you offered a daily deal with a group buying site? (n=2,071)
Would you offer a daily deal with a group buying site again? (n=241)
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16 PROPRIETARY AND CONFIDENTIAL
Perception of daily deals sites amongst users
Why would you offer a daily deal again? (n=181)
Why wouldn’t you offer a daily deal again? (n=59)
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17 PROPRIETARY AND CONFIDENTIAL
Current and future group deals adoption
Which group deals services have you used in the past? (n=233)
Which group deals service do you plan to use in the future? (n=304)
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18 PROPRIETARY AND CONFIDENTIAL
Group deals adoption criteria
What criteria matter most to you when choosing a group buying service? (n=314)
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19 PROPRIETARY AND CONFIDENTIAL
Mobile marketing
Describe your mobile marketing efforts today. (n=1,854)
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20 PROPRIETARY AND CONFIDENTIAL
Smartphone adoption amongst local business owners
Which of the following devices do you use for your business? (n=1,971)
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21 PROPRIETARY AND CONFIDENTIAL
Tablet adoption
Do you use a tablet device for your business (e.g., iPad)? (n=1,988)
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22 PROPRIETARY AND CONFIDENTIAL
Respondent Profiles
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23 PROPRIETARY AND CONFIDENTIAL
Size of business
How many people does your business employ? (n=1,952)
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24 PROPRIETARY AND CONFIDENTIAL
Business categories
Which single business category best describes your business? (n=1,952)
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