A frequent complaint about Groupon is that it brings one-time, non-loyal customers to stores.
Groupon is launching a rewards program to fix that.
Groupon Rewards will enable businesses to reward repeat customers who spend a certain amount at their stores.
The rewards are tied to users’ credit cards. If you purchase a Groupon, use the deal, then visit the store again and buy something, a reward notification may pop up on your smart phone, without ever logging into the deals site or checking-in to the location.
Groupon Rewards is a smart move; it seamlessly turns every one of the millions of credit cards Groupon has on file into store discount cards. Groupon hopes you’ll never have to grab another “Buy 7 coffees, get one free” card from a store again.
Groupon will be able to track how much money people spend at every partnering store and encourage repeat visits. Its VP of Product tells TechCrunch that Groupon Rewards is part of the company’s “Triforce.”
Erick Schonfeld writes, “The first is the daily deal, which Groupon perfected as a customer acquisition product and reached massive scale. The second is Groupon Now, the mobile app that lets local merchants do yield management by offering deals when business is slow. The third is Groupon Rewards, which is built around customer loyalty and retention.”
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.