In her latest All Things Digital piece, writer Lizz Gannes makes the clever recommendation that group buying behemoth Groupon should join forces with loyalty king Foursquare. That’s a good notion considering that Groupon, as she mentions, “…excels at recruiting customers…” and that Foursquare is known for helping merchants with customer stickiness.
The idea of such a union is also a good one because individually, their models will likely fizzle out. Merchants will tire of the deal model where customers rush into their stores to cannibalize their products, leaving without establishing a lasting bond with the brand. On the loyalty side, the attention of today’s fickle consumers will wane with incessant in-store and event check-ins that yield nothing more than a virtual medal.
Real people want to redeem real rewards for the exerted effort. Bringing Groupon and Foursquare together gives social gamers and product driven consumers the best of both worlds. Let’s see if it happens.