Smart SpendingSmart Spending

Would you pay to be a Groupon VIP?

The daily deals site is testing a program that lets members pay a fee to get early offers and have access to closed or sold-out deals.

By Giselle Smith Feb 17, 2012 4:52PM

Groupon aficionados know there's nothing like being away from email for a day or two, then learning that you missed out on a huge discount at your favorite salon, that new restaurant you want to try, or a much-needed massage. 

 

But would you be willing to pay an annual fee to have greater access to the deals you want?

 

The Chicago-based daily deals site is testing a VIP program that would charge users $29.99 for access to closed or sold-out deals, early access to regular deals and "one-click access" to refunds (for Groupon credit) on expired deals, the Chicago Tribune reports.

 

Letters introducing the program and offering a free three-month trial were sent to select "best customers," according to Business Insider. A company spokesperson said the service is "aimed at 'Groupon-addicts'" but, if successful, may be expanded to more users.

 

The VIP program is not available in all markets. Groupon told the Tribune that the program is "quietly testing in a handful of markets," including Tampa, Fla., and Hampton Roads, Va.

 

Groupon still on top

The daily-deal model is a free service that emails discounts to subscribers -- usually 50% or more off for services and products. Subscribers pay only for the coupons they want. The most popular deals are those for food and drink or spa and beauty treatments, according to a report by Susquehanna Financial Group and Yipit, a daily deal aggregator. (Post continues below.)

Despite increased competition in the daily deals space, Groupon remains the leader,  Digital Trends reported: "The coupon curator market might be oversaturated, but the veteran service has remained the top stop among its various competitors since day one."

 

Groupon expanded from its original service-based coupons to include retail products (Groupon Goods), travel deals (Groupon Getaways) and one-day deals (Now! Deals). The VIP program is the company's first foray into a fee-based product.

 

Andrew Mason, Groupon CEO, speaking at an investors' conference Thursday, said the company is seeking to increase personalization, according to the Tribune. "In the next two to three months, we're doing a few things to make (personalization) even better," Mason said.

 

Perhaps in response to subscribers weary of too many deals, the company will tailor deals not just by geography but also by asking subscribers to indicate what types they like -- and don't like. Presumably that means some of us can stop getting so many offers for laser hair removal, yoga classes or teeth whitening.

 

Citing the company's 2011 launch of Groupon Rewards (which lets subscribers collect points with retailers and earn exclusive coupons) and the invitation-only Groupon Reserve (offering high-end deals to affluent customers), Digital Trends speculated that this is another attempt to satisfy investors. It said, "Since Groupon management reported a net loss of more than $40 million over the fourth quarter of 2011, the company is likely desperate to boost revenue over the next year."

 

Groupon competior LivingSocial has been testing a similar loyalty program, called Plus, since November, the Tribune reports.

LivingSocial's service costs $20 per month and provides early access to special and closed deals, the ability to participate in VIP events and $5 in additional credit every month.

What do you think? Would you pay to have more access to daily deals?

 

More on MSN Money:

0Comments

DATA PROVIDERS

Copyright © 2013 Microsoft. All rights reserved.

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.

ABOUT SMART SPENDING

Smart Spending brings you the best money-saving tips from MSN Money and the rest of the Web. Join the conversation on Facebook and follow us on Twitter.

Editor Bev O'Shea lives and works in the foothills of the Appalachians. A former copy editor for The Atlanta Journal-Constitution and the Orlando Sentinel, she joined MSN Money in 2007. She's a fan of sunsets, college football and free shipping, among other things.

Having worked as a writer, reporter and editor for more than 25 years, Editor Julie Tilsner is the sort of person who can't help but correct grammar in Facebook postings and on billboards. She's written for BusinessWeek, the Los Angeles Times, Parenting, Redbook, AOL and others. She lives in Los Angeles County with her family and loves to drink wine and practice yoga, although not generally at the same time.

A writer for MSN Money since January 2007, Donna Freedman won regional and national prizes during an 18-year newspaper career and earned a college degree in midlife without taking out student loans. She also writes about smart money tactics for magazines and on her own site, Surviving and Thriving.

Mitch Lipka has been warning people about scams and shining light on questionable business practices for more than 20 years. Mitch, the consumer columnist for The Boston Globe, has also been a reporter and editor at The Philadelphia Inquirer, Consumer Reports, South Florida Sun-Sentinel and AOL. He won the 2010 New York Press Club award for best consumer reporting online and was honored in 2011 for his reporting on child product safety.

Marilyn Lewis is an award-winning writer with a passion for getting readers clear, straight information that helps them stay out of financial trouble. A former reporter for The San Jose Mercury News, she works from her home in Port Townsend, Wash. Contact her at MarilynLewis@Outlook.com.

LATEST BLOG POSTS

VIDEO ON MSN MONEY

TOOLS

More
MSN Mobile: Go to msn.com in your phone's browser.