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Tuesday, March 1, 2011

Report: Group-Buying Websites Create Buzz

Not necessarily bucks for clients

According to Sarah Lundy at the Orlando Sentinel, Joe Liguori says his foray into the world of Groupon was a successful one — but he likely won't do it again.

The restaurant owner agreed to offer a Groupon deal — $10 for a $20 of food — for his customers at Pizzeria Valdiano's four locations in Central Florida.

"It was a good experience," he said, adding that 500 Groupons sold. "[But] I looked at it as a marketing program and not so much as a way to get revenue."

Liguori said the promotion created "a buzz" but lacked sustaining power. "As far as getting [these customers] to come back, I just didn't see that," he said.

Many Central Florida businesses are experimenting with the power of social-buying websites that offer 50-to 90-percent-off deals. It's a consumer-tech trend that started in larger cities and now sweeping the country.

Groupon, the most widely known site, debuted in Orlando last April, and a few similar daily discount services, such as LivingSocial, Eversave and Odeals, have followed.

The concept is basically the same. Each service offers a daily deal, and consumers have 24 hours to act. Some sites offer incentives to share the deals with friends through Facebook and Twitter.

Read more here.

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