More than half of businesses that have used a daily deal site such as Groupon or LivingSocial in the past say they won’t be doing the same in the next six months, according to a new survey.
Even though 80% of companies said they were satisfied with their experiences using the discount promotion services, 52% said they’ll hold off on repeat partnerships for the first half of 2012, according to data from Susquehanna Financial Group and daily deal aggregator Yipit.
Less than three-quarters said they’d offer even one such deal.
Many businesses may be holding off because of concerns about the daily deal model, which they said doesn’t always convince customers to return for repeat visits. Coupon users instead grow to rely on the deals and become hesitant to pay full price, limiting businesses’ ability to get customers to buy more expensive items and upgrades.
But the survey also found that companies who partnered with LivingSocial and Groupon saw the experience as a way to diversify their marketing efforts. Nearly half said they landed more customers because of the arrangement, and about 10% said the deals helped boost revenue.