One of the challenges of running a social commerce site these days is that there is just too much demand, from both local merchants wanting to give out deals and consumers who want to try them. There are only 365 days in a year, and the daily deal format limits each city to 365 deals a year.
Sites like GroupOn and LivingSocial are hitting those limits. GroupOn is expanding its inventory by “personalizing” deals, essentially showing different deals to different people. LivingSocial is handling the issue by going hyperlocal. It will now start offering deals by neighborhood and city districts.
LivingSocial will start bringing daily deals to the hood out in Washington, D.C. and New York City. In Washington, D.C., there will be deals for The District, Montgomery County and Northern Virginia (not exactly neighborhoods, but why get bogged down in details). In New York City, you can sign up for deals Uptown (soul food), Midtown (cupcakes), Downtown (facials) and in Brooklyn (dance lessons). Again, these aren’t really neighborhoods—Brooklyn on its own is bigger than most cities in America—but they do break up the city into more manageable zones and open up the site to more deals.
This is something, in fact, that Groupon does as well in a couple cities like Los Angeles and Washington, D.C. In fact, it breaks down Washington, D.C. the exact same way: the District, Montgomery County and Northern Virginia.
LivingSocial is the social commerce leader behind LivingSocial Deals, a group buying program that invites people and their friends to save up to 90 percent each day at their favorite restaurants, spas, sporting events, hotels and other local attractions in major cities. LivingSocial has an extensive user base of more than 85 million, and is headquartered in Washington, D.C.
Groupon features a daily deal on the best stuff to do, see, eat, and buy in more than 565 cities around the world. By promising businesses a minimum number of customers, Groupon can offer deals that aren’t available elsewhere. Groupon brings buyers and sellers together in a fun and collaborative way that offers the consumer an unbeatable deal, and businesses a large number of new customers. To date, it has saved consumers more than $300 million and claims it...