[Nickshu]

I have done marketing campaigns using Constant Contact for my business twice in the past. One was just an advert and I received very little response. In the other I gave away $5 Starbucks gift cards to anyone who came in and mentioned the ad. This one got pretty good response, but did not produce loyal customers.

My experience is that this type of marketing generates people who look for a good deal, then after they get the deal, they move on to the next good deal and do not become loyal customers. I think this is true for Living Social, Groupon, etc. If your business is one where you are trying to develop long-term relationships/customers this type of marketing (in my experience) is not effective unless you constantly are giving away deals for free...which in the long term does not make for a profitable business.