Groupon Launches Rewards, Loyalty Program for Local Merchants

by Trefis Team
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Groupon
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Groupon (NASDAQ:GRPN) announced the nationwide launch of Groupon Rewards, a loyalty program for local merchants which enables them to offer their customers special rewards and offers for repeat business. Customers can earn Groupon Rewards by using any credit card saved in their Groupon profile when they make a purchase. Once they spend above a certain limit, they automatically get an offer or reward for their next purchase. This makes it easy for them to collect and redeem rewards without any extra apps or loyalty cards. [1]

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Groupon Rewards brings easy-to-use customer loyalty programs to local merchants

Groupon is banking on ease-of-use as well as its reach within the local merchant community to drive adoption of Groupon Rewards. It can work directly with the existing point-of-sale systems of merchants, without the need to upgrade them. Groupon is also offering detailed analytics related to Rewards to merchants, so they can optimize their offers and rewards to boost customer loyalty metrics.

Groupon Rewards ties in nicely wih Groupon Now to offer a complete self-serve daily deals solution for local merchants. Merchants can attract customers initially using deals and boost loyalty by offering additional discounts redeemable on their next purchase.

We expect new offerings like Scheduler, Groupon Now and Groupon Rewards to drive revenue growth for Groupon, going forward, by offering a complete online marketing solution to local businesses also driving revenue from its core daily deals business.

We have a $14 Trefis price estimate for Groupon, which stands near its current market price, which has bounced back after reaching an all-time low earlier this month. Daily deals account for a major portion of its overall value. It competes primarily with LivingSocial backed by Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOG) Offers, Yelp (NYSE:YELP) and countless clones, but is looking to expand its offerings in other categories to diversify its revenue streams and drive its core daily deals business.

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Notes:
  1. Groupon Rewards Launches Nationwide, Driving Repeat Business for Local Merchants, Groupon []
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