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A Square Peg in a Round Deal

One of the newest, more replicated trends has been the launch of several daily deal programs, offering substantial discounts to customers while gaining exposure and driving business for the merchant.

Of the many, GroupOn and Living Social have risen above the rest to be seen as the most popular and successful.

But a recent analysis has shown which demographics have been determined more likely to use which service, playing an important role in determining which service would better suit certain offers.

A survey by the Nielson Company has shown that Living Social users are more likely to be wealthier, younger and to have a college degree.

Compared to 30 percent from GroupOn, Living Social users are 49 percent more likely than the average American to have an annual income of $150,000.

Living Social users are also more likely to be under the age of 35 and (46 percent Living Social to GroupOn’s 39 percent) more likely to have a college degree.

GroupOn’s customer base is older, with 57 percent of their customer base between the ages of 35 to 64. The same age group represents 51 percent of Living Social users, but they are also tapped into the youth market with one-third of their users falling between 21 to 34 years old.

Based on the numbers alone, merchants can decide which service would better fit their product or service.

Other factors playing a part in decision-making might fall under the intangibles.

Just this week, an article posted to CNN Money detailing a first-person account of a restaurant owner’s dealing with both GroupOn and Living Social.

In it, she describes the lack of communication with one, even after several attempts to reach out. With the same service, she became frustrated that her deals were not being accepted by their marketing department—they seemed to be too good a deal, thus not making them enough money.

In her deals with the other company, the same restaurateur applauded their ability to work with the deals being suggested, and setting them aside for another time should they be better suited for another season.

All in all, not all daily deal sites are the best fit for those willing to offer the deals. Shazaaam! and Buzzphoria have dealt with a number of daily deal programs, gaining experience in which deal would best suit certain companies, better hitting their target markets and certain demographics, to better meet a client’s expectations.

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