BuyWithMe took an interesting approach to the daily deal arena by acquiring Edhance.com, a cash-back rewards program for college students. Based in Cambridge, Mass., Edhance was established in 2009. The loyalty platform allows users to register their debit or credit cards and get cash back when they make purchases at an affiliate retail store.
What is the difference between a daily deal platform and a cash back platform? Why not shop at a daily deal site? You get your savings upfront, rather than getting cash back after you’ve spent it. Unlike daily deal sites, cash back sites offer more choices in the shopping arena, such as Home Depot and Walmart. Whereas daily deal sites, limit you on your selection because they want you to “discover” a new product or “buy now and save”.
With that said, BuyWithMe is taking on the cash back of social shopping, which will place on the platform on the cutting edge of competing with other social shopping platforms, such as Groupon and LivingSocial.
“This acquisition fundamentally changes the daily deal industry and is a true win for our merchants and consumers alike,” commented Jim Crowley, CEO of BuyWithMe. “The daily deal model is an incredible demand generation tool for merchants, but until today the industry has failed to provide merchants a means to create, manage and measure not just deal results but ongoing customer loyalty, reward and engagement programs post the initial promotion.”