Cadence Bank already had been in the news for its decision to migrate its debit portfolio to the Discover brand. This kind of portfolio conversion always is the best time to introduce a new service to cardholders and Cadence has decided to mimic the Groupon model and develped its own local merchant rewards program. Called Buzz Points, cardholders earn and redeem points at local merchants. Cadence is able to deliver the program at a much lower cost point than other daily deals sites, which require businesses to offer discounts up front.
How is adoption of the Buzz Points program going so far? “We’re pleased with early results,” Claypoole says.
For community banks, adding value to local purchases appears to offer an advantage to the financial institutions, especially if they can align the program with their small business banking services. In addition, the strategy helps to emphasize the fact that Discover’s acceptance footprint is equivalent to other card brands.
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