LivingSocial Moves Away from Daily Deals
LivingSocial is moving beyond daily deals. Its next target? Your business.
The company announced Friday it will soon introduce a line of tech tools to help merchants and small businesses with their digital marketing, customer loyalty, and point-of-sale operations. What kinds of tools? The Washington Post reports the company won't share details just yet, but plans to begin testing later this summer.
“My customer is the merchant,” said Dickson Chu, senior VP of the company's Merchant Solutions division, to the paper. “Our entire focus of this business unit is how do I make [them] more successful. Our role is to be the enabler.”
Tim O'Shaughnessy, LivingSocial's chief executive, added: “A significant percentage of what we do [in the future] will be things where the discount won’t be the primary driver."
Why the shift? Perhaps it's the recent wave of small businesses that claim daily deal sites, like LivingSocial, aren't showing any long-term customer retention, or driving any significant business. (O'Shaughnessy said, however, that 54% of merchants make money on deals, while 31% break even.)
Another thing the company will be moving away from is an IPO.
Though LivingSocial was expected to go public after Groupon's IPO in November, O'Shaughnessy recently said the company is in no rush, according to Reuters.