The wheels are turning at Groupon and new revenue streams are being sought with a vengeance. The latest deal to come through from Groupon is Groupon VIP, a new service that the group buying site is currently testing that will offer users a number of exclusive features for $30 a year.
The company announced this in a letter sent out to a select number of its users where CEO Andrew Mason broke the news. Calling it their newest innovation, the CEO proceeded to break the service down into three distinct points. Groupon VIP’s will be offered the following:
- Book First: This service will allow users to have prior booking opportunities or first dibs on new deals before they heat mainstream. This is especially crucial in the so called fire sales where merchandise and services are consumed in a matter of minutes.
- Buy Past Deals: Groupon boasts a deal vault where past or sold-out deals can still be bought. This may be more of a fire fighting measure as up to 20% of all deals go un-bought by the time of their expiry.
- Any time Refund: This is a biggy for those who may want to return a deal bought for something else. The service will allow users to swap deals for Groupon credits which may be used to purchase future deals.
The new service makes a lot of sense in this service oriented technology world that is emerging where companies are structuring their products more as services than as one-time purchases. With million of users on board, charging $30 a year per user will go a very long way in boosting and securing Groupon’s revenues going forward.