Hosting provider, NetHosting examines online deal and coupon website, LivingSocial in its latest case study.

Orem, UT NetHosting, a leading provider of dedicated, cloud, and virtual hosting has published a case study on the growing deal and coupon provider LivingSocial, investigating its system specifications and business model.

NetHosting reports on LivingSocial’s history, expanding from its early days as Hungry Machine in 2007, to developing Visual Bookshelf and Pick Your Five, to securing $175 million of funding from Amazon and a total investment sum of over $600 million. LivingSocial is dedicated to providing users with local deals as well as helping local businesses to get the exposure they need to grow.

Using LivingSocial can provide local companies with valuable local business, 87% of restaurant merchant customers said they would return to the restaurant after redeeming their deal, 91% of deal redeemers have already done business with the merchant again or plan on doing so, and 29% of deal redeemers are brand new customers.

“LivingSocial is a great resource for local businesses and consumers alike. It allows businesses to get their names out there and encourages the sharing of discounts and deals via social media,” says NetHosting CEO Lane Livingston. “LivingSocial’s connection to Facebook through its mobile applications has made it a really viable online discount and deal provider.”

In its LivingSocial case study, NetHosting looks at the company’s history of growth and the way in which it incorporates social media networks, such as Facebook, to expand its reach and online visibility, as well as its international growth. As LivingSocial has expanded, it has updated its website features to be more user friendly, and have purchased other online deal providers to expand its market and reach. Allowing users to categorize deals according to interests helps potential customers to find what they want, and the Facebook share facility allows customers to spread the word about deals they have purchased or think friends would like.

In addition to its LivingSocial case study, NetHosting has also looked into other online deal providers such as Groupon and discount e-retailer Ideeli.