Groupon Rewards is a loyalty platform for the company’s merchants — and a set of incentives for its most active subscribers.
The product integrates with merchants’ Point of Sale systems to let them offer customers special deals whenever they spend above certain thresholds.
“Consumers earn rewards at participating merchants simply by paying with the credit or debit card they have on file at Groupon.com,” the company explains in a blog post about the new product. “After spending an amount set by the merchant, the consumer unlocks the ability to purchase a special Groupon for that business.”
The product has been piloted in test markets, including the Chicago area, and is now being released to Groupon merchants free of charge. Merchants can sign up to configure reward coupons and use the product to view new and repeat customers, as well as see how much customers are spending and how often they visit.
Groupon Rewards is being marketed as an alternative to the punch card and is designed to help merchants drive repeat business — instead of just attracting one-time deal-hungry patrons. It may help the pre-IPO company quiet naysayers who question its ability to drive quality customers to participating merchants.
Groupon joins other startups such as Foursquare, SCVNGR and Swipely, all of whom have experimented with loyalty initiatives that link a customer’s credit card info to automatic rewards for spending at merchant venues.
Article found at: http://mashable.com/2011/09/28/groupon-rewards/