Do Groupon discounts generate long-term customer loyalty or just one-off purchases at a highly discounted rate? This is a problem many merchants struggle with when deciding whether or not to offer a Groupon. In order to combat this fear, the daily deal giant launched Groupon Rewards as a way to allow merchants to track deal redemption and ROI and incentivise customers to do repeat business at their favourite merchants.
"Consumers earn rewards at participating merchants simply by paying with the credit or debit card they have on file at Groupon.com. After spending an amount set by the merchant, the consumer unlocks the ability to purchase a special Groupon for that business." Read the complete article
At Loyalty World 2011, Ash Mahmud, Head of CRM UK & Ireland at Groupon gave a presentation on analysing location based offers as part of a loyalty program, showing you how to successfully incorporate LBS into your existing marketing program. He also showed the audience how to measure the success of your location based efforts and how to increase average order value and frequency of purchase.
Top 3 ways to gain advantage:
1. Make sure your business model drives, promotes and sells loyalty
2. The market is driven by better targeting and mobile apps- know the potential
3. Create a geo business strategy – 80% of disposable income spent within 10 mile radius of where someone lives
View the full presentation here for a more detailed analysis
Check out some of the key trends changing the customer loyalty landscape from Zappos here