One of the issues for Groupon is that the new customers Groupon generates for their merchant partners often remain just one-time bargain hunters. Although this isn’t a knockout factor given the other benefits of Groupon (example: merchants can also fill their unprofitable low volume periods) it doesn’t mean that Groupon shouldn’t try to minimize this disadvantage.
Groupon’s answer to the customer retention problem is Groupon Rewards:
"With a Groupon Reward, a business that offers a regular Groupon deal will be able to follow up with another reward that gets unlocked after the customer spends a certain amount of money. For instance, after a customer spends $50 or $100 at a store over time, she might get a Groupon Reward of $20 worth of goods for $4.
All that a customer will need to do is pay with the same credit card which is already on file with Groupon (after opting into the program). She can reach the spending goal, which is set by the merchant, over multiple visits.
Each time, she will get a notification by email or on her phone alerting her that she just spent money at a merchant offering a Groupon Reward and how much more she needs to spend to unlock it: “You just spent $7 at Salem Coffee Beanery! You’re only $15 away from unlocking an exclusive reward!”"
Groupon Rewards identifies customers via the credit card they use. This makes the implementation in the USA rather simple, however leaves countries like Germany out where credit card usage is too low.
In connection with Groupon Rewards, an analysis tool will be available for merchants:
“With most of Groupon’s daily deals today, they still don’t know how many people redeem them or when or how much total they spend at each merchant. Groupon Rewards can actually track spending at each merchant, which gives Groupon much better visibility into the success of its main business (how many people who buy regular Groupons come back, how much do they spend, etc?). Merchants who participate will also get a dashboard to track these metrics for themselves”
Related posts:
- Groupon As A Product Mover
- Groupon Bashing and the Internal Response
- Groupon Now! and the Mobile Future
- Is Groupon Developing in the Right Direction for the Long Term?
Originally posted in German by Marcel Weiss, adapted for excitingcommerce.com by Jason Soo.
Its not a new way of groupon...
Posted by: groupon script | 10/17/2011 at 08:57 AM