Big Y Foods Test Runs Groupon

The regional chain is testing the coupon program, which will be tied to Big Y's loyalty program.

June 09, 2011

SPRINGFIELD, Mass. - Big Y Foods is testing the waters with Groupon, becoming the first big supermarket chain to do so, Marketing Daily reports. "For us, it's just a way to test another medium," said Harry Kimball, Big Y director of database marketing. "It's a way for us to get the message out, and tie it to our loyalty program. We want to know if our customers will respond, and we want to give them another way to buy groceries and shop in our stores."

Big Y started its test by discounting its new Shellfish Grill Pack of clams, lobster tails and mussels. Customers buy the Groupon and then key in their Big Y Express Saving Club number to get the deal automatically put on their loyalty card.

The Big Y promotion is the first time Groupon has worked with a grocery store chain to integrate the deal with the store??s loyalty club program. Kimball said Big Y is trying out different campaigns as it figures out how to expand its loyalty program. For example, in March, the chain tested a loyalty card that had a $20 fee.

"Really, this is just a new way to offer shoppers a 'Deal of the Day,' and there's a lot of buzz about Groupon right now," said Kimball. The Shellfish Grill Pack deal has gone well thus far. "I'm shocked at how well the Groupon offer is doing -- there are already more than 100 responses, and it went to a limited audience," he says.

The chain will test other Groupon deals before deciding on a more permanent relationship. "If it turns out that this is what people want, we'll do it. If not, we'll move on to the next thing," said Kimball.

For more on whether Groupon is right for you, read more in NACS Magazine.

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