Groupon is on a quest to woo merchants and consumers alike with a loyalty program that is now going nationwide. It started the initiative last fall in select markets, in an attempt to try and help local businesses hold on to some of those new customers who come calling as a result of daily deal promotions.
According to the Chicago Tribune, Groupon Rewards began in Philadelphia late last year. The plan aims to help address a problem that local merchants have had a tough time with — a flood of one-time customers who are cashing in on a Groupon deal.
Often those customers overwhelm the business all at once, and then don’t ever come back after that first experience. Such a deluge of one-time patronage can cause a lot of issues, including, claim some merchants, a loss of money for the business because consumers don’t come back to pay the full price.
Groupon Rewards will allow a customer who spends a certain amount of money at a store, restaurant or other businesses to unlock a special Groupon that can be spent at that store. The business sets the spending goal as well as the value of the voucher.
Customers opt in one time and save a debit or credit card online with Groupon. The system then tracks that card’s spending and alerts the consumer when they hit the reward voucher goal.
The program is free for both merchants and consumers, and Groupon takes a commission from the rewards vouchers.
“We believe this is the easiest Rewards program in the world for both merchants and consumers,” said Jay Hoffmann, general manager of Groupon Rewards.
Groupon Rewards expanding to become national [Chicago Tribune]