UPS partners with retailers in launch of Groupon-like rewards program

Discussion
Source: upsmychoicedeals.com
Apr 25, 2018
Tom Ryan

UPS has launched the UPS My Choice Deals site offering retailers a platform to reach its more than 43 million UPS My Choice members with special deals and discounts.

Introduced in 2011, the UPS My Choice service enables consumers to receive estimated arrival and progress alerts, sign for packages in advance, set vacation holds or change delivery addresses.

Representing the first non-shipping perk for UPS My Choice members, the UPS My Choice Deals site lists more than 500 special offers ranging from shopping discounts to cash back on eligible purchases.

Looking similar to Groupon, the site is filled with exclusive offers, hot new offers, go green deals and local deals as well as those sorted by category (Restaurants, Apparel & Accessories, Food, etc.). The most popular deals currently include $60 in savings for signing up for Costco membership, $19 off per Disneyland ticket and up to $250 off Samsung products at Walmart.

UPS displays the deals for customers in banner ads attached to delivery notifications. Consumers can head to UPSMyChoiceDeals.com or access the deals site through their UPS My Choice login. Guests not logged in can use the deals site but won’t have access to some deals or any cash-back offers

The deal perks are designed to make both consumers and retailers more loyal users of UPS, as the service works to compete with FedEx and the ever-looming Amazon.

“The UPS My Choice Deals site helps connect retailers and shoppers by providing a platform for great deals through a convenient member-exclusive marketplace,” said Jerome Roberts, UPS’s VP of global product innovation in a statement. “Retailers benefit from access to the UPS My Choice membership base, including loyal, savvy online shoppers and coveted new customers. It can be a great tool to drive engagement and sales.”

UPS has set up a pay-for-performance compensation model for retailers. UPS earns a commission on the deals for promoting the products and benefits when customers link deliveries to deal purchases.

“If you are receiving something from Macy’s, you’ll have an additional deal from Macy’s right there in your alert,” Stu Marcus, UPS VP of customer technology marketing, told Reuters.

DISCUSSION QUESTIONS: How would you rate the appeal of the UPS My Choice Deals site for consumers and for retailers? Will it improve loyalty between UPS and its retail customers and consumers?

Please practice The RetailWire Golden Rule when submitting your comments.
Braintrust
"More opportunity to get products at a discount will certainly have appeal -- there just has to be relevance in the offer."
"I am a UPS My Choice customer and I can’t say I care about whether or not there are deals offered."
"Words I don’t think you want associated with your brand: “Groupon” and “discount.”"

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9 Comments on "UPS partners with retailers in launch of Groupon-like rewards program"


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David Weinand
BrainTrust

To gain access to 43 million consumers certainly should have appeal for retailers but to further propagate the discount culture is worrisome. Groupon has proven that beyond the initial sale, it hasn’t been very effective at creating follow up sales (i.e. loyalty). For the consumers, it’s a win for sure. More opportunity to get products at a discount will certainly have appeal — there just has to be relevance in the offer (i.e. your speakers are arriving Tuesday, here is an offer for speaker wire and a new receiver.)

Kim Garretson
Guest

I love this idea for the simple reason that whenever I interact with my usual UPS drivers at my doorstep I find them to be extremely friendly and courteous. To be able to chat with them about these perks should add another level of personal customer service to what UPS offers.

Bob Phibbs
BrainTrust

Words I don’t think you want associated with your brand: “Groupon” and “discount.”

Evan Snively
BrainTrust

One major flaw with this structure is that the majority of users of the UPS My Choice platform are utilizing it because they are on the receiving end of a package as it: “enables customers to receive estimated arrival and progress alerts, sign for packages in advance, set vacation holds or change delivery addresses.” They are not the ones making the purchase decision to ship through UPS, so from a UPS repeat customer standpoint the loyalty upside play is limited.

Ben Ball
BrainTrust

That was my first reaction as well, Evan. Then I thought about how many times I bite on those “customers who bought X also bought Y” add-on purchase offers all sites use now. If I am receiving a shipment from a retailer, I obviously have some interest in their merchandise, so maybe I am a bit more predisposed to buy something else. And if I get accustomed to buying things there and I get a deal or cash back, maybe I will check it out along with Amazon? I don’t know — but I can see the possibility.

Evan Snively
BrainTrust

There’s no question that there is a value-add for the merchants who will be able to advertise relevant deals. From the receiver’s standpoint, I wonder if there will be a strong enough tie back to the UPS brand with how the deals are presented or if they will just thank Macy’s for strategically placing a good deal in front of them, like any other targeted banner ad.

Ancillary revenue stream for UPS, yes. Loyalty driver, doubtful.

Celeste C. Giampetro
Guest

Agree, Evan. I am a UPS My Choice customer and I can’t say I care about whether or not there are deals offered. The value to me is knowing when my packages will arrive. Period. The end. And like you said, I have zero say in which delivery choice the retailer makes.

Rich Kizer
BrainTrust

Forty-three million potential buyers is attractive. UPS’s requirement is to aggressively promote this program to their “UPS My Choice Deals” clients. This program certainly is reminiscent of Groupon, where retailers learned numerous lessons (some good, some tough) on this “deal” type of format; as in product limitations and length of offerings. With that being said, if those lessons were learned, this may be a great opportunity. It is certainly becoming a small world with opportunities for many businesses to sell, promote and create new markets and market share.

Mike Osorio
BrainTrust

This seems to have a simpler explanation: UPS has a database and a platform that can be leveraged by placing ads on real estate that is already in front of a target customer. They are simply selling that real estate. Will it create more loyalty to UPS? I doubt significantly, but that would be a nice add-on to the real purpose which is to monetize perceived high-value real estate.

wpDiscuz
Braintrust
"More opportunity to get products at a discount will certainly have appeal -- there just has to be relevance in the offer."
"I am a UPS My Choice customer and I can’t say I care about whether or not there are deals offered."
"Words I don’t think you want associated with your brand: “Groupon” and “discount.”"

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