The once-upon-a-time daily deals giant has launched Groupon Rewards, which is a loyalty program that tracks consumers' purchases through their Groupon-saved credit or debit card, in order to reward them when they reach a certain amount at a participating retailers' venue.
Merchants can become a "participating retailer" for free by signing up on Groupon's website. With Groupon Rewards, merchants have the ability to create their own spending requirements and rewards to compensate their most loyal customers without punchcards or check-ins. The platform also gives merchants access to valuable insights into their customers' spending activity.
Loyalty programs are an effective way to maintain a business' customer base and increase conversions, brand loyalty and brand advocates. However, with the popularity of social media and mobile devices, it is interesting that Groupon would emphasize the fact that merchants don't have to deal with check-ins. Although monitoring such things can add to a business owner's already busy work schedule, check-ins would provide small businesses and Groupon with additional word-of-mouth advertising - which could prove to be very valuable.
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