BIA/Kelsey has asserted that a logical next step for deal-a-day providers is to target smaller geographical radii and specific consumer preferences to bolster their value proposition. LivingSocial has made a move in that direction by serving deals at the neighborhood — or sub-metro — level.
New York and Washington, D.C. (LivingSocial’s home base), are debuting the offering. D.C. metro residents, for instance, can select among D.C., Montgomery County and Northern Virginia deals.
LivingSocial’s latest announcement comes in the wake of Groupon’s personalization program, which allows subscribers to earmark the types of offers they wish to receive.
Groupon and LivingSocial already boast exceedingly high open rates for their e-mail offerings (Groupon reports 66 percent); these geo- and behaviorally targeted advancements stand to enhance that. They also enable both companies to roll out more daily deal inventory, allowing them to recruit new merchants or stagger more frequent offerings to existing clients.