Customer loyalty has become a critical challenge for daily deal providers, and Groupon is attempting to address one of the biggest complaints from merchants with the launch of a new nationwide rewards program. By linking discounts directly to repeat spending behavior, Groupon hopes to encourage long-term customer relationships instead of one-time bargain hunting. The move also reflects a broader shift in digital commerce toward card-linked offers and automated loyalty programs that simplify rewards for both consumers and businesses.
Groupon is rolling out a loyalty reward program nationwide, which might be enough for some disgruntled merchants to give the company another chance.
Merchants’ biggest complaint about Groupon is that the discounts don’t lead to repeat business from users. But the new loyalty program could change that. From a Chicago Tribune article:
With Groupon Rewards, a customer who spends a certain amount of money at a merchant across any number of visits unlocks a Groupon that can be spent at that business. The merchant sets the spending goal and the value of the voucher.
Consumers participate in the program by opting in once and putting a debit or credit card on file with Groupon. An automated system tracks spending on that card and unlocks the reward voucher when the goal is hit.
At a time when consumers sign up for multiple discount providers and have their inboxes bombarded with offers, Groupon’s new loyalty system could help separate it from competitors such as LivingSocial and Google Offers.
Click here to read more from the Chicago Tribune.
