Online daily deals: good for the customer but bad for business?

The UK is going mad for online discounts – the BBC programme The Apprentice aired on 23 May, where contestants had to source deals for such a business, highlighted this.

  • From July to December in 2011 Britain spent £3 billion through daily deal websites such as Groupon.
  • Voucher sites have taken over sitting at 37.4 million UK internet visits in December 2011, up 28% in a year.
  • LivingSocial claims that its voucher sales have almost doubled when compared the previous year.

With the information that a hotel in Ireland made over $1 million in 24 hours on Facebook offers it’s a tempting deal for businesses…