Groupon Closes the Redemption Loop With Loyalty Rewards

#1

Post by bsmith » Wed, Sep 28, 2011, 4:40 AM UTC

Groupon Closes the Redemption Loop With Loyalty Rewards
techcrunch.com

Re: Groupon Closes the Redemption Loop With Loyalty Rewards

#2

Post by dmk23 » Wed, Sep 28, 2011, 4:47 AM UTC

This could actually save their business model. Merchant churn is really their biggest problem. Becoming their "loyalty solution provider" could help re-engage the merchants. The only puzzling thing is why Groupon has not done it earlier.

Re: Groupon Closes the Redemption Loop With Loyalty Rewards

#3

Post by bsmith » Wed, Sep 28, 2011, 4:57 AM UTC

dmk23 wrote: post #2

This could actually save their business model. Merchant churn is really their biggest problem. Becoming their "loyalty solution provider" could help re-engage the merchants. The only puzzling thing is why Groupon has not done it earlier.

I completely agree. In the same vein, Scoutmob allows merchants to offer their customers "return perks" for visiting their store a second time, and I think this has been a very effective strategy for them business-wise.

Re: Groupon Closes the Redemption Loop With Loyalty Rewards

#4

Post by brianbreslin » Wed, Sep 28, 2011, 4:59 AM UTC

Think they will compete with google wallet and the other mobile payment platforms?

If they can reign in costs (by many magnitudes) I would go long on them. Scale and size make them a quite formidable player in retail.

Re: Groupon Closes the Redemption Loop With Loyalty Rewards

#5

Post by rhizome » Wed, Sep 28, 2011, 5:00 AM UTC

dmk23 wrote: post #2

This could actually save their business model. Merchant churn is really their biggest problem. Becoming their "loyalty solution provider" could help re-engage the merchants. The only puzzling thing is why Groupon has not done it earlier.

The only puzzling thing is why Groupon has not done it earlier.

They were milking it?

Re: Groupon Closes the Redemption Loop With Loyalty Rewards

#6

Post by jasonwilk » Wed, Sep 28, 2011, 5:01 AM UTC

This is Groupon's best product to date. I don't know about everyone else on HN, but I feel like a good majority of people I know have at least bought one Groupon by now, where their credit card is stored. To take that major advantage and apply frictionless rewards for users, is recipe for major disruption.

Checking in to a place on Facebook and FSQ is almost entirely useless for a small business. They need $$$, not someone looking to get 10% off for letting their friends know they are at a place they probably are all well aware of. I hope Grocery stores sign up for this, so for once in their history they can make use of their 'loyalty program', which probably has over 10,000 purchases tied to my phone number for almost no purpose at all.

I'm not saying this is perfect, but this is the first product i've seen in a while that seems like useful software.

Re: Groupon Closes the Redemption Loop With Loyalty Rewards

#7

Post by ashbrahma » Wed, Sep 28, 2011, 5:22 AM UTC

It was interesting to note that Groupon thinks Foursquare check-in's is a "necessary evil"..

Re: Groupon Closes the Redemption Loop With Loyalty Rewards

#8

Post by jc4p » Wed, Sep 28, 2011, 5:26 AM UTC

Am I the only one who sees a huge problem with opting into having Groupon track my purchases? I'd definitely rather carry around a paper card that gets holes punched in it than have a company like Groupon track my purchases.

Re: Groupon Closes the Redemption Loop With Loyalty Rewards

#9

Post by sunchild » Wed, Sep 28, 2011, 5:34 AM UTC

jasonwilk wrote: post #6

This is Groupon's best product to date. I don't know about everyone else on HN, but I feel like a good majority of people I know have at least bought one Groupon by now, where their credit card is stored. To take that major advantage and apply frictionless rewards for users, is recipe for major disruption. Checking in to a place on Facebook and FSQ is almost entirely useless for a small business. They need $$$, not s…

Just as all roads in the enterprise lead to email clients, all roads in daily deals lead to loyalty programs. Forgive me for being blunt, but Groupon's move into loyalty programs was basically inevitable, if you really think about their business model. In fact, every merchant-middle-man-operation of any kind will eventually adopt (or join) a loyalty program. That's why you see them at grocery stores, pharmacies, credit card companies, online retailers, etc., etc., etc.

Re: Groupon Closes the Redemption Loop With Loyalty Rewards

#10

Post by prostoalex » Wed, Sep 28, 2011, 5:45 AM UTC

jc4p wrote: post #8

Am I the only one who sees a huge problem with opting into having Groupon track my purchases? I'd definitely rather carry around a paper card that gets holes punched in it than have a company like Groupon track my purchases.

It's not a novel idea, RewardsNetwork awards miles for dining with merchants they have signed up http://skymiles.rewardsnetwork.com/

UPromise has had a similar program tracking not just restaurants, but all sorts of shopping venues http://www.upromise.com/welcome

American Express will also track your Amex purchases and assign loyalty rewards based on their Link, Like, Love Facebook promotion https://www.facebook.com/americanexpress

Are you not okay with an idea? Or not okay with Groupon, Inc. being another company to implement this fairly commoditized loyalty program?