Groupon offers new, bigger discount
SAN FRANCISCO - Groupon has come up with another way for bargain hunters to save money: a new loyalty program it unveiled yesterday.
Merchants who join the service set a spending target for customers to hit; they then qualify for an even steeper discount.
Groupon offers millions of daily deals each week.
The new feature is meant to please consumers and merchants alike as Groupon tries to revive interest in its initial public offering of stock. The IPO plans had Wall Street buzzing in June because of the company’s sizzling growth rate. But interest has waned amid doubts about Groupon’s accounting, leadership, and ability to maintain its lead in a market now drowning in daily deals.
Groupon has signaled it still intends to complete an IPO to raise up to $750 million. The Chicago company has not specified a timetable, but analysts expect the IPO within a month, unless the stock market gets even rockier.
Under the new program, consumers who spend enough money to qualify for the reward would receive an 80 percent discount instead of the typical 50 percent markdown. For example, someone who spent $100 with a hairstylist might need to spend only another $20 to get the next $100 in service.