Fifty-five percent of small businesses that have tested group-buying platforms like Groupon and LivingSocial do not plan to use the services again, according to a new MerchantCircle study. The online business directory's research supports Rice University's study last fall that found one-third of businesses' Groupon campaigns were unprofitable.
MerchantCircle surveyed 8,456 SMBs, while 6,874 responded to the question about group-buying deals. Of those, 23 percent (1,568) had offered a daily deal. From that number, 856 stated they didn't plan to repeat the strategy, and 712 said they would try group-buying platforms again. More than 5,300 said they've never offered a daily deal.
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