[Previous] [Next] - [Index] [Thread Index] - [Previous in Thread] [Next in Thread]

Subject: Re: UKNM: Internet Loyalty Schemes
From: Ken Cowley
Date: Sat, 29 Jan 2000 17:32:22 GMT

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 <russellatthepartnership [dot] co [dot] uk>
To: <uk-netmarketingatmail [dot] chinwag [dot] 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
> 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
> 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
> 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
> pay M&S (still a powerful brand, despite their current problems) GBP 10
> 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
> 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
> 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

post new media vacancies for free uknm-jobsatchinwag [dot] com
sponsor the uk-netmarketing list and website, contact
salesatchinwag [dot] com for more details.
To unsubscribe or change your list settings go to
http://www.chinwag.com/uk-netmarketing or helpatchinwag [dot] com

  UKNM: Internet Loyalty Schemes, Russell Buckley

[Previous] [Next] - [Index] [Thread Index] - [Next in Thread] [Previous in Thread]