Re: UKNM: Internet Loyalty Schemes

[Ken Cowley]

The point I was making was that it isn't a loyalty or sales promotion scheme

but a way of triggering certain activity while at a site. Your 50% is paying

for something that might make a difference at the margin to how many people

fill in your registration form/click on your 'product news' page. Don't know

how realistic it is. I didn't buy it. There should be stats available from

their customers now - 'navigation route on average before beenz/after beenz'

demonstrating that yes indeed, 'more visitors went straight to registration

once we put beenz on that link'.


I agree that perceived value of reward should be higher than the promoter

pays. I remember doing a (real, not Internet world) reseller incentive where

the manufacturer pitched in cheap goods. That's the spirit.


----- Original Message -----

From: Russell Buckley <russell@thepartnership.co.uk>

To: <uk-netmarketing@mail.chinwag.com>

Sent: 26 January 2000 15:23

Subject: UKNM: Internet Loyalty Schemes



 > Ken Cowley wrote about Beenz.

 >

 > If I understand correctly, the way that Beenz work is that they sell to

 > promotors for 1c each and they buy them back at 0.5c if you allow punters

to

 > redeem at your site.

 >

 > Alternatively, your site users can use the Beenz you give them (and others

 > they've collected) to buy a CD, say. If they do, the punter gets a CD with

a

 > retail cost of GBP 13 (ish) for 3,000 Beenz valuing each Beenz at 0.43c.

 >

 > Now, please someone point out where I'm going wrong here - I'm happy to

 > accept public humiliation as it's been bugging me for a while. Isn't this

 > like them selling $1 bills for $2? If I'm running a promotion, surely I

want

 > to give my consumers something which they think is worth more (or at least

 > the same, as is the case with many vouchers) than what I paid. Why would I

 > pay a third party double what they are then giving to my customer? Would

you

 > pay M&S (still a powerful brand, despite their current problems) GBP 10

for

 > every GBP 5 voucher you purchased?

 >

 > Now I know online brands play by different rules and work to different

 > business models. There is arguably a case to say that Beenz will (at some

 > point) have millions of collectors all looking to collect and spend Beenz

 > and thus the traffic they can generate may be worth something on top of

 > the intrinsic value of the reward they represent. But can it be worth

paying

 > double the face value of what you're giving away?

 >

 > Beenz.com are at pains to distance themselves from a promotional scheme,

 > preferring to describe themselves as "the web's currency". OK, but what

bank

 > would be able to get away with selling their bank notes at twice what they

 > buy them back at?

 >

 > Have I missed the point?

 >

 > Russell Buckley

 > The Handling Partnership



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