Announcing Groupon Rewards

Today we’ve announced Groupon Rewards, a new program allowing consumers to unlock special Groupon deals from their favorite local businesses through repeat visits. 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.

What’s exciting about Rewards is how easy it is for both merchants and consumers. As a shopper, you don’t have to worry about a loyalty card or remembering to check in – we do all the work behind the scenes. And as a merchant, Rewards works with your existing POS system to help you track redemption and ROI while incentivizing future purchases. Pretty cool stuff.

Merchant response in our test markets has been great so far. Here’s what we heard from Derek Miller, Director of Digital Marketing for Lifeway Foods, the parent company of Starfruit Café, which has five locations in Chicago and is participating in the pilot program:

“We love that Groupon Rewards is about increasing customer check-outs instead of the check-in or the added burden of a manual program. Fraud issues can often accompany check-in and traditional punch card loyalty programs. Groupon Rewards ties rewards to spend, not visits, giving our customers incentives to purchase a larger dessert or a second treat the next time they come in.”

Groupon Rewards completes our trifecta of merchant products, the ultimate marketing suite in local e-commerce:

  • Traditional Groupon deals are customer acquisition in its simplest form – they raise awareness and drive trial of a business
  • Groupon Now! is our yield management solution – merchants flip a switch to drive traffic when they want it the most
  • Rewards promotes loyalty and retention – merchants can motivate and measure repeat business, creating long-lasting relationships

Merchants who would like to learn more and participate can visit our merchant page.

Click here if you’d like to sign up for Rewards when we’re ready in your city.

  • I LOVE GROUPON! We have saved so much money – with just a click! I share with my friends great deals I think they would want to know about too! GROUPON is GREAT!

  • If I understand correctly, the consumer will need to release their credit card information to Groupon in order for Groupon to track their purchases? Isn’t this a privacy and security issue?

  • i just wanted to let you know that the only problem I have with Groupons is the one per table, there are 3 couples and we always go out together, so because of the one per table we buy less groupons, and just eat near home, or at our Club house…

  • Regarding “Groupon says”
    The segment on the Iditrod is offending! This great race is a test of man and animal power and stamina-a feat that few are brave enough or strong enough to even train for. The history of antibiotics being delivered by the mush team with Malta the final dog is amazing. How dare you belittle this event!
    I do not know where this comment should go-maybe not you-but please forward. I choose not to be on facebook or twitter but you have my email.
    Thanks for listening.

  • Linda

    Thanks, we appreciate your feedback and will pass it on to the reps for you.

    Thea @ Groupon

  • Michelle,

    We’ll be sending them a report with full names, but no credit card information will be given to the business. If you have more questions, you can follow up with us at support@groupon.com and we can provide more details!

    Thea @ Groupon

  • Very interesting idea! I love that Groupon is always trying to innovate! I do have one question. Would I have to buy a Groupon first with that business? Or can I just join the business’s rewards program to earn a “special” Groupon later? In other words, can a business sign up for Groupon Rewards without offering a regular deal (on Groupon Now deal)?

  • I will have to agree with Linda…the Dinner groupons are really frustrating. On a recent trip to Chicago, my husband and I utilized a Groupon Now I found on my phone…When we got to the restaurant…we found 3 other tables besides ourselves arguing with the waitress about using our groupon because none of us could see in fine print on our phones that it was only 1 per table…our dinner ended up costing us $30 more than we had intended and really made me squirm that that feature.

  • Gyamfua,

    Sorry for any confusion. It’s never our intention to be unclear. Most often Groupons will have a 1 per table restriction on the fine print, but we always ask that you double check as we’ll always list any specific rules that apply. If you ever have any questions about them, we ask that you reach out to our customer service team.

    Thea @ Groupon

  • Mark,

    You will have to opt-in to the Rewards program, but after that you won’t have to do it again. If you need more questions answered, we can give you more details if you write support@groupon.com. Thanks!

    Thea @ Groupon

  • I have the same concern as Michelle. Regardless of what is reported back to a merchant, does this mean that Groupon sees all of my purchases?

  • @Kathy regarding the Iditarod…Seriously? Has everyone in America lost their sense of humor? It should be obvious to you as it is to most of us that this is in fun and no one is trying to belittle or negate anyone or anything. If eveyone was offended by evrything that was written this would be a very sad place to live as we would lose our freedom of speech. Lighten up a little and relax.

  • “ONE PER TABLE”…I have used more than one Groupon in this polite manner: BEFORE we order, I present to the Waitperson our Groupons. We let he/she know that we are willing to NOT dine if they do not accept the multi Groupons, they always agree. Restaurants want our business. We also tip nicely. When I have 2 Groupons (one printed out from the Groupon site & one from Groupon Now via cell phone for the same restaurant for us for supper—as in a To-Go order) I place first order and give the printed Groupon, pay, & tip…..then place SECOND order, show my cell phone scan bar, pay, & tip…It has never been turned away. :)

  • Why is it a Groupon can be bought only one time for a certain purchase? Small print stated “New Customers”. I bought one a year ago from a wine company and when I went to use my second-time-purchase Groupon, they declined my usage of it as the agreed and paid for price?? I had to pay MORE in order to receive my purchase? They stated “Once you buy / use a Groupon, you can NOT use a Groupon ever again at a Groupon price, even if its over a year ago original purchase date.” Does that sound correct / is that right?

  • Groupon Miles! Absolutely a fan. I have so many ideas for your site! Just wish there was someone to share it with.

  • Mark,

    Yes. Any merchant can sign up for Groupon Rewards, regardless if they have run a Groupon Deal or not.

    Thea @ Groupon

  • Stevie,

    Yes, sometimes businesses will set the terms to only accept new customers in order to gain new clientele. It varies for each business and some will have longer non-discount conditions than others.

    In regards to the one per table comment, we always advise that customers check with the business first if you are going to request something that differs from the fine print.

    Thea @ Groupon

  • Groupon Promise says “If you ever feel like Groupon let you down, give us a call and we’ll return your purchase, simple as that.” But there is no phone # anywhere. If you’re sincere, please make a phone # readily available.

    I spent $100 for a Groupon to Renew Cosmetic Spa in St. Louis and they are not returning phone calls. I would like my money back.

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