When your business model depends on creating viable daily deals for merchant customers, it’s in your best interest to figure out how to fix what’s not working. This is the message companies such as Groupon and LivingSocial are working out as they begin to rise above the negative publicity surrounding daily deal marketing. A recent follow-up study by Rice University shows some improvement in merchants’ experiences with daily deal strategies.
From an All Things Digital article:
Both Groupon and LivingSocial have spent the past year or so fine-tuning the experience and working more closely with merchants to ensure that each deal is a success. Looks like the extra effort is starting to pay off.
Important to note is the final bullet in the article which indicates that merchant loyalty to multiple daily deal sites is low, which is likely an indicator that market consolidation/contraction should accelerate in the near term.
Daily deal site loyalty levels are low for businesses running multiple daily deals. For a business’ second deal, 54 percent used the same daily deal site they used the first time. By the time they have run seven or more deals, only 8.6 percent of businesses have used the same site for all their daily deals, whereas 27.5 percent have used four or more daily deal sites.
Click here to read more from All Things Digital.