Are you a fool to use Groupon and LivingSocial

Hi, Reg Gupton here.

I have been giving a lot of thought to Groupon, Living Social as a business development strategy. It seems these sites are helping some businesses and hurting mightily others.

Please take a look at this story, especially the story from the business owner near the bottom of the post.

FURIOUS MERCHANT: 'Groupon And Living Social Are Doomed'

www.businessinsider.com1/3/12

One key question about the future of daily-deal giants Groupon (GRPN) and Living Social is whether the product the companies sell--daily deals--are excellent marketing for their customers... or a gigantic waste of money and ...

Note: Here is a follow on story from another frustrated business owner.

Read and learn to make smarter decisions.

ANGRY MERCHANT: Here's Why I Hate Groupon And LivingSocial ...

www.businessinsider.com1/4/12

But this merchant's reaction provides further evidence that Groupon and LivingSocial have a lot of work to do to make their service work better for their merchant customers. This work, we suspect, will lead to smaller discounts ...

Note: Here is someone who "feels" that daily discounts were successful. There is no description of what they did specifically to bring people back. While 50% are reported as being turned into repeat customers, I am skeptical.

Case Study - Delaware Coffee Shop Sees 50% Return for Daily Deal Customers - Street Fight

http://streetfightmag.com/3h ago

We have not done LivingSocial, but I had a conversation with a colleague of mine today and she told me about Google Offers, which is similar. Social Media for Hyperlocal.

Note: Here is an interview with Living Social on their take on the innovations they are creating. Clearly Living Social is driving traffic but are they driving merchant profits? That remains to be seen.

Studies Reveal Contradictory Info about Daily Deals

"Rice University recently came out with a study that brought up some concerns about the sustainability of daily deals' providers. It indicates that daily deals' providers would have to lower their profit shares in order to succeed and would still fac...

Watch for more on this topic. Your comments and opinions are always invited and respected.

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Hi

Reg Gupton here.

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Reg Gupton, MBA
Coach, consultant, trainer

P.S. Follow me at www.twitter.com/reggupton

P.P.S join me at www.facebook.com/reggupton

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www.facebook.com/reggupton

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Hi,

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To continued success,

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