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Vacation Incentive Loyalty Programs

Consumers Can Earn Air Miles with Groupon's Loyalty Program

— October 27, 2017 — World
Groupon is leveraging consumer loyalty to increase its sales this upcoming holiday season, with the introduction of the company's new initiative, which lets consumers earn airline miles or hotel points, with each purchase.

The recently launched program, which has been implemented to incentivize consumers to shop exclusively through Groupon adds a deeper element of value to each purchase. Individuals can choose between collecting air miles or hotel points, which can be applied to an upcoming vacation.

In order to earn points, existing Groupon members can register for the loyalty program, receiving a 1,000 mile bonus after placing their first local purchase. Moving forward, the consumer will be awarded an additional five air miles, for every dollar spent. Those opting for hotels and getaways will receive an initial 2,000 points, earning an additional 8 points per dollar spent in the future.
Trend Themes
1. Consumer Loyalty Programs - The introduction of Groupon's loyalty program shows the trend of incorporating consumer loyalty to drive sales and increase customer engagement.
2. Incentivized Purchases - Groupon's initiative of earning airline miles or hotel points with each purchase highlights the trend of incentivizing consumers through rewards to boost sales.
3. Value-added Shopping Experience - The addition of earning air miles or hotel points adds a deeper element of value to each purchase, reflecting the trend of enhancing the shopping experience for customers.
Industry Implications
1. E-commerce - Groupon's loyalty program demonstrates innovation opportunities for the e-commerce industry in increasing customer loyalty and driving sales through incentives.
2. Travel and Hospitality - The incorporation of airline miles and hotel points in Groupon's loyalty program presents disruptive innovation opportunities in the travel and hospitality industry by leveraging consumer loyalty to attract more customers.
3. Marketing and Advertising - The concept of incentivizing purchases in Groupon's loyalty program offers disruptive innovation opportunities for the marketing and advertising industry in developing creative strategies to engage and retain customers.
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