LivingSocial Launches Monthly Subscription to Facilitate Shopper Retention

Number two daily deals site LivingSocial has launched a subscription service called “LivingSocial Plus” in hopes of getting shoppers to make more frequent and consistent purchases.

Members who made a purchase on Cyber Monday Nov. 28th were the first shoppers who were offered the new LivingSocial Plus deal, which is currently still in its beta version. Those who are not are part of the test base will be redirected to the general site when attempting to go straight to the LivingSocial Plus URL.

Under the monthly membership deal, members pay $20 a month and get $25 in “Deal Bucks” that are automatically applied to their next purchase. Members also get access to closed deals.

Daily deal sites are currently trying to battle a fundamental problem whereby shoppers only purchase specific deals relevant to them and have no intention of returning to the site to make more purchases. The Washington DC-based company’s membership deal could establish a consistent revenue stream by getting buyers to purchase more frequently.

The company has been aggressively searching for new models that might save it from the decline affecting Groupon, the current number one “deal of the day” website. Just last month, LivingSocial launched “LivingSocial Instant and Room Service” with which members can order discounted food for pickup or delivery.