|Subject:||UKNM: Internet Loyalty Schemes|
|Date:||Wed, 26 Jan 2000 16:36:50 GMT|
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?
The Handling Partnership
>From: owner-uk-netmarketing-digestchinwag [dot] com (UKNM Digest)
>To: uk-netmarketing-digestchinwag [dot] com
>Subject: UKNM Digest V1 #373
>Date: Wed, Jan 26, 2000, 11:58
> Date: Mon, 24 Jan 2000 22:44:06 -0000
> From: "Ken Cowley" <kenvitamin [dot] co [dot] uk>
> Subject: Re: UKNM: Internet Loyalty Schemes
> I think the use of the term 'loyalty' is interesting.
> Beenz certainly go out of their way to suggest that they're supposed to be
> used to incentivise particular behaviour while on a site (click this link,
> fill in this form). You can see how this might work - you open a site you've
> not been to and one of the links promises you something (anything will do)
> if you click on it. It's only human nature, goes the argument. The beenz
> presentation talks about visitors 'doing work' at a website (clicking,
> filling in forms) for which they 'get paid' (in beenz). But this is not
> loyalty. (I'm sure brand managers will point out that you don't 'buy'
> loyalty anyway - granted, but out of scope of the thread).
[Sam says: email chopped for brevity]
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