Question

Topic: Branding

Loyalty Card Schemes

Posted by loyaltyMATTERS on 11/4/2006 at 6:41 AM ET 250 Points
My agency is in the process of evaluating a card based loyalty scheme (awarding points to consumers) on behalf of a number of independent retailer clients (similar to the Nectar scheme in the UK). We have sourced the technologies we need (to record purchase & redemption points). I need to find out more competitive information about the commercial arrangements for similar schemes in operation. Specifically the arrangements between the loyalty scheme provider and the retailer: typical set up charges, monthly charges per outlet, the mechanism for payment of awarded and redeemed points etc. Any information provided would be greatly appreciated.
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RESPONSES

  • Posted by loyaltyMATTERS on 11/5/2006 at 9:24 AM Author
    Hi Rita - thanks for the feedback - we'll get our thinking caps on and come up with a better description! By the way - I think your web site looks great.
  • Posted by darcy.moen on 11/5/2006 at 12:45 PM Accepted
    Scheme is a fine term. I think its the difference between the way the word is used. Scheme in North America has negative connotations, as in the thieves where plotting a scheme to steal the Mona Lisa. While in the UK, scheme is used to describe a structured plan, as in life insurance is a scheme to offset loss of income.

    Fees for a loyalty program vary widely. Some companies I've worked with require a $25,000 deposit, and monthly fees of $5,000. Other required no set up and 20 dollars a month to host an application. Some I've only heard about are in the millions of dollars. It all comes down to the size of the client and the scope of the operation. Home Depot would have different needs and pay different fees compared to a local drycleaner needing one store and 5,000 customers covered.

    Darcy Moen
    Fellow subject of the Queen (Canada)
    Customer Loyalty Network
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