Internal LivingSocial Survey: Vast Majority Of Businesses Profit Or Break Even On Daily Deals

Living Social internal survey

Photo: Living Social, Business Insider

Is the daily deal industry truly sustainable?Or will businesses burn out on discounts, stop offering deals, and cause the whole thing to come crashing down?

Last week we published the results of our own small survey of businesses that had run Groupons. The takeaway: 50% of businesses didn’t want to run another Groupon.

After we ran our survey, LivingSocial reached out with the results of its own internal survey of 369 businesses that have run LivingSocial deals.

This is not the full survey, it’s only what LivingSocial was willing to give us, so treat it skeptically. Obviously, this is what LivingSocial wants us to see.

However, we think it’s still an interesting read because it reveals some insight into the daily deals space and how the second biggest player in the space thinks about the market.

Despite the regular carping from pundits on the sidelines, LivingSocial believes it can show that daily deals are a good deal for businesses, and thus a sustainable long term industry.

Surprise! The daily deal space is super crowded

More perspective on how crowded the deals space is: The average business has run 3 deals in the last year

LivingSocial says its deals are good for businesses: 85% of the merchants surveyed thought they'd break even or profit from their deal

27% of businesses believe daily deals lead to return customers. Sounds like a small per cent, but LivingSocial believes it's a very impressive number as compared to other marketing channels.

Even though it's a brand new industry, businesses view it as one of the best marketing options they have, says LivingSocial

As a result businesses say they are shifting some dollars into daily deals that would have gone elsewhere

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