I've had some good deals with them, I've had some bad deals with them, but I've consistently had terrible customer service. My feeling from dealing with them as a customer is that they are too young and too insular. I complained about the app not working correctly and they tell me how to use the app. Doesn't matter to them that what they told me is how I told them I was using the app. I complained about a vendor not responding after I emailed and called them, they told me how to email and call the vendor. Out of about ten coupons I've purchased from them, one ended horribly in a vendor ruining the very thing we hired them for, one ending miserably as a poorly planned "fun" outing, and a vendor not returning calls for months on end and customer service making snarky comments to me instead of following up.
They are a new company, they are doing a lot of business, they have a good model and nice software, but they seriously lack the infrastructure and maturity to provide adequate service. At their events the service seemed to center around having young and attractive people who smiled a lot. My dealings with them via email tell me I'm not getting much more there. It's time to grow up, Living Social.