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Just as all roads in the enterprise lead to email clients, all roads in daily deals lead to loyalty programs. Forgive me for being blunt, but Groupon's move in
by sunchild 15y ago
Just as all roads in the enterprise lead to email clients, all roads in daily deals lead to loyalty programs. Forgive me for being blunt, but Groupon's move into loyalty programs was basically inevitable, if you really think about their business model. In fact, every merchant-middle-man-operation of any kind will eventually adopt (or join) a loyalty program. That's why you see them at grocery stores, pharmacies, credit card companies, online retailers, etc., etc., etc.
- Woost 15y agoCan you expand on why you think that is? (not arguing, just curious as to your reasoning)
- sunchild 15y agoIt's structural; a middle-man in the merchant sales cycle presents two fundamental value-add propositions: 1. Eliminate the hassle of finding and dealing with prospective customers, 2. Educate the merchant about customer demographics and preferences. That latter point is why all "sales broker" business models eventually lead to loyalty programs (which is a euphemism for data collection, volume incentives, and targeted advertising).