LivingSocial is taking the next step in its revamped business model with a communications platform called Connect that its commercial partners can use to directly engage with customers on its website. Its the next step in the company's big shake up that started with the hiring of new CEO Gautam Thakar and the laying off of 20 percent of its staff. LivingSocial has been looking to shift toward a merchant-based model with longer times for special deals and more personalized offers created by the stores and companies advertising on its website.
“Small and large businesses alike turn to LivingSocial for introductions to high-quality customers,” said Kerry Lenahan, LivingSocial's vice president of product management in a statement. “With Connect, businesses now have new ways to communicate with those customers, reaching them across multiple channels before they ever come through their doors and increasing the chances that newcomers become loyal fans.”
The goals is to create more repeat customers for merchants using connect. Extra offers, thank you notes and the chance to respond to comments and reviews immediately are all part of the new service. LivingSocial has launched Connect nationally but tested it out over the last few months with over 2,000 commercial partners, who sent out 18,000 or so thank you emails and 8,500 bonus offers to customers, of which about 850 were claimed.
How well the new market offers will do on a national scale will be a real test of the new LivingSocial model. It will also test whether Thakar's experience with eBay and online e-commerce from the marketing and advertising side can boost the fortunes of LivingSocial after a more than usually tumultuous year.
