A New Deal: How Long Will Consumers be Loyal to the Groupon Loyalty Card?
Popular online coupon website Groupon made an attempt earlier this week to become more like a traditional coupon business by implementing test loyalty cards at supermarkets.
Groupon joined two Boston marketing services on June 7 to launch a test at Springfield, Mass.-based Big Y in which it uses rewards cards to provide shoppers with discount deals.
This was a big step for Groupon, which started in November 2008 as a deal-of-the-day website that promoted discounted gift certificates at local and national companies. It was originally structured to provide discounts based on the number of participating customers: a minimum number of participants was needed in order for a discount to become available that day. With the new loyalty cards, customers get prepaid discounts into their accounts.
The supermarket loyalty program is a more secure method of getting customers to participate and for retailers to ensure they’re not defrauded. Other product manufacturers in addition Procter & Gamble Co. are expected to join the program.
The question remains, however, how long will this really pay off for both consumers and retailers in the long run?
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