bloomspot Releases Data Showing Superior Customer Spend and Return Rates

SAN FRANCISCO, CA--(Marketwire - Oct 6, 2011) - bloomspot (www.bloomspot.com), the leading local offer provider focused on merchant profitability, today released data demonstrating the company's ability to deliver profitable customers to its merchant partners. For the first time in local marketing, results on first-time customer spending and repeat visit behavior are being made public. The release of this proprietary data serves as the next step in bloomspot's mission to transform local marketing for merchants.

bloomspot's PRIME product, launched in Q2 2011, integrates -- with consumer and merchant permission -- into the credit card experience and rewards great patrons for their ongoing business with merchants. With access to customer spend and return data, merchants have been able to measure the performance of offers on bloomspot. These results have also enabled bloomspot to guarantee offer profitability to merchants and create true alignment between the company's business model and the goals of its merchant partners.

In the two months following PRIME's launch, nearly 50,000 offers with top merchants were sold through the product, and these merchants have seen that up to 57% of bloomspot customers make repeat visits. To date, bloomspot customers have spent 1.5X the original certificate value on average.

Of those merchants who have participated in bloomspot's Guarantee Program, 85% have found that bloomspot's customers have not only met baseline spend guarantees, but have even exceeded guaranteed spend levels by an average of 50%.

"We have, until now, only been sharing this PRIME and Guarantee data with our merchant partners and are happy to be releasing these numbers publicly to show how valuable bloomspot customers are to great local businesses," said Jasper Malcolmson, co-founder and CEO of bloomspot. "The combination of desirable offers from top merchants, quality customers and a leading technology solution has yielded the right formula for success in local marketing, and the numbers prove it."

With bloomspot PRIME, merchants gain critical visibility into the performance of their local offers; bloomspot subscribers receive rewards -- 25% credit toward future offers on the site -- by simply opting in to PRIME when making a purchase, and then using the same credit card for their initial and ongoing purchases. The loyalty component of the product incentivizes bloomspot customers to spend more than an offer's value during the first visit and encourages them to return and make purchases at full value. bloomspot distinguishes itself within the industry by ensuring merchant satisfaction and catering to an affluent, well-educated customer base that seeks highly relevant offers.

About bloomspot
bloomspot is the leading local offer provider focused on merchant profitability, and the premier source for customers seeking to discover their next local favorite. The company gives merchants critical visibility into customer behavior and ensures that its subscribers will be profitable for each promotion. As a result, bloomspot also delivers lasting value to its subscriber base by procuring the best quality offers and rewarding patrons who demonstrate ongoing loyalty to local businesses. Based in San Francisco, CA, bloomspot has venture backing from InterWest Partners, Columbia Capital, Menlo Ventures, True Ventures, QED Investors and Harrison Metal, as well as individuals including Erik Blachford, Chairman of Butterfield & Robinson and former CEO of Expedia Inc.; and Gary Parsons, Chairman of Sirius XM Radio.