Rewards of airline miles or hotel points
US-based (SPY) local-deal marketplace Groupon (GRPN) has launched a new loyalty program that allows customers to collect benefits tied to air travel and hotel services. The company said that its new loyalty program is aimed at encouraging customers to make purchases through its marketplace.
Groupon’s new loyalty program allows shoppers to earn airline miles and hotel points by simply purchasing a product or service on the platform. Groupon’s e-commerce offerings are categorized as Local, Goods, or Getaways.
Introductory miles for airlines and hotels
Groupon’s new loyalty program offers rewards under two categories, Airlines and Hotels. Under the Airlines category, new customers are welcomed with a bonus of 1,000 miles for Local purchases worth $30 or more. Under the Airlines category, a customer earns 5.0 miles for every dollar spent on Local purchases, 4.0 miles for every dollar of Getaways purchases, and 3.0 miles for every dollar of Goods purchases.
Under the Hotels category, new customers earn 2,000 points for Local purchases worth $30 or more. Under the Hotels category, shoppers earn ten points for every dollar spent on Local purchases, 8.0 points for every dollar of Getaways purchases, and 6.0 points for every dollar of Goods purchases.
Brands participating in Groupon’s new loyalty program include American Airlines’ (AAL) AAdvantage, Alaska Airlines’ (ALK) Mileage Plan, JetBlue Airways’ (JBLU) TrueBlue Program, and Choice Privileges.
Groupon is hoping that its new loyalty program will drive sales and improve customer retention. Groupon’s revenue fell 8.0% year-over-year to $662.6 million in 2Q17. The company lost 300,000 active customers overseas, but gained 300,000 active customers in North America.