Do Groupon, Living Social and other daily deal blogs work?

Jul-28-2011 09:31 am

groupon logoIt definitely depends on your definition for success. This article shows three studies that seem to show the long term drawbacks of discount deals and the relationship between them and customer and advertiser loyalty. Take a look at the results and draw your own conclusions. Remember Branding has always been used to differentiate your product from others but the Daily Deal sites create generic products and reduce products to being seen as generic where the best price wins. This is dangerous ground for a capitalist business model and not hopeful for repeat business as it sets a non maintainable low price expectation. Future purchasers feel disappointed when they have to pay full price and they simply won’t. They just move on to the next daily special.

Let us know how your daily deal went and if you would do it all again!

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