Groupon tries to encourage local loyalty with new rewards program

Groupon Rewards is the deal provider’s mostly-automated alternative to the store punchcard. Merchants offer rewards in the form of exclusive Groupons to repeat customers who spend above a certain amount using a credit card on file in their Groupon account. The program was previously being piloted in test markets such as Philadelphia.

With the program, merchants set their own spending requirements and rewards, and they receive payment analytics to assess the probability of their campaigns. For consumers, Groupon automatically tracks their spending at participating businesses and notifies them when they’re eligible to redeem a free Groupon reward.