Market Overview

Are You A Groupon VIP? Perhaps You Should Be


A lot of people already Groupon (Nasdaq: GRPN), but the trick for the newly public company going forward will be converting loyal users of the daily deals site into a better bottom line.

The Chicago-based daily deal purveyor is reportedly testing a subscription service that will give those willing to fork over $30 a year early access to hot deal, the ability to purchase old deals and refunds at any time.

According to an email obtained by Business Insider, Groupon is calling the new program "Groupon VIP." Membership is actually $29.99 per year (let's not quibble over a penny) and customers can try Groupon VIP for three months free of charge.

Groupon VIP members also have one-click access on the website to process refunds on coupons that they were not able to redeem in time, with the refund coming in the form of Groupon credit, the Chicago Tribune reported.

For now, the company is only testing Groupon VIP in select markets, but it is important to realize Groupon VIP is the company's first effort at a paid service on its Web site. The new program is not applicable to GrouponLive, travel deals through Groupon Getaway or products sold through Groupon Goods, the Tribune reported.

Shares of Groupon are higher by 3.1% in early afternoon trading. Shares of the Global X Social Media Index ETF (Nasdaq: SOCL), which features an allocation of almost 3% to Groupon, are slightly higher today.

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