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Running Groupon or Living Social Deal Leads to 10% Decrease in Yelp Rating (launch.is)
9 points by ssclafani on Sept 12, 2011 | hide | past | favorite | 1 comment


The reply from LivingSocial is disappointing; the defense of the issue as "well, you don't know what we know" may be true, but doesn't make much sense on the surface. How can that be good for a company, given the buying public doesn't know those things either?

A more reasonable response, that would have been more believable, would have been something like "We have read the studies and want to work with the researchers to share our data on retention, engagement, and (whatever), as we think there are pieces of this complex problem missing from the analysis" - even better, point out if the researchers didn't reach out to them.

After the Groupon fiasco, both companies need to embrace a more open, transparent process (and communication style) if they want to change the perception of their market space.




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