Groupon adds loyalty program Groupon Rewards

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Daily deals company Groupon debuted a loyalty program on Sept. 28 that enables merchants to deliver follow-up offers to consumers who previously purchased a Groupon from the merchant.

Groupon is piloting Groupon Rewards in Chicago and Philadelphia and will roll out the program to other markets over the next few months based on merchant demand, said Groupon spokesperson Julie Mossler. Merchants and consumers can join the program today, and Rewards will go live for consumers in “a few weeks,” she said.

“A criticism of the Groupon model is that people question what we were doing to drive loyalty and help merchants drive redemption,” Mossler said.

Consumers who opt in to the program will earn Rewards based on the amount of money they spend with a participating merchant. Groupon will track Rewards progress based on purchases made through a consumer's credit or debit card connected to their Groupon account.

Mossler said Groupon chose to base Rewards on monetary spending rather than transaction quantity because it incentivizes consumers to spend more at a business as well as to become a return customer.

The first time a consumer buys a Groupon from a merchant, that consumer will be notified whether the merchant is a Rewards participant. Consumers will be able to track their progress to attaining a Reward through their Groupon account. Groupon will also send “periodic communications” to consumers regarding their Rewards progress.

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