FROM WISE MARKETER
We’ve witnessed a rash of new loyalty program launches over the past two weeks, and we could not resist doing some comparison to see if there was an emerging trend or dominant strategy that you should know about.
We looked at the list below and found extreme diversity in the approaches taken by the brands launching these loyalty programs:
- PepsiCo – PepCoin (US)
- Meninga Rewards (Nordic countries)
- Lenovo – MyLenovo Rewards (US)
- Giant Tiger Stores – GT VIP (Canada)
- Majid Al Futtaim – Share (UAE)
PepsiCo’s PepCoin and Meninga’s programs are each built around a cash back offer. Giant Tiger Stores uses a mobile app to deliver “deals and discounts” that can be used while in the store. Majid Al Futtaim has a unique mall loyalty coalition model and Lenovo is offering a traditional spending-based rebate program.
If there is a lesson to be learned from sifting through the program rules, it’s that none of these models would necessarily be fit for another brand on the list. If we were to play a game of “loyalty program musical chairs”, the brand left out might breath a sigh of relief rather than being stuck with another brand’s customer loyalty strategy.
That’s not a bad thing.
A solid piece of wisdom for any “wise marketer” to consider is that each brand has its own unique set of brand assets composed of business model, reputation, competitive standing, product exclusivity, geographic coverage, and culture.
The lesson to be learned is there is no “one size fits all” strategy to market to the customer for all the brands listed above. And, while we might like some of the approaches taken better than others, we respect that enough resources were invested to arrive at the customer value proposition offered by each loyalty program.
Also Read: United MileagePlus Liberates Its Frequent Flyer Miles from Expiration
Here’s a quick spin through each program:
PepsiCo – PepCoin
- US based customers earn cash back when buying pairs of specially marked PepsiCo drinks and Frito-Lay snacks.
- When cash back rewards reach $2, a deposit is automatically made to the customer’s Venmo or PayPal account.
- Similar to the rewards offer from its number one rival, My Coke Rewards, customers need to download a rewards app and scan a code from under the cap of a drink; but, the difference with PepCoin is that you also need to pair the drink’s code with a code from a Frito-Lay snack (both scans need to be processed within 48 hours of each other).
- Cash rewards accumulate at an estimated $.37 per paired items, meaning purchase of about 6 pairs of soda/snack items are needed to reach the reward threshold.
- PepsiCo says that the rebate amount is about 10% of spend.
Meninga – Meninga Rewards App
- Meninga is a developer of white-labeled digital banking products and has partnered with UN Climate Change to allow banking customers using the app to donate cash in support of solutions for climate change.
- The Meninga Rewards App, through a network of banking partners, reaches a user base of more than 250,000 people in Sweden, Finland, and Iceland.
- People can download the Meninga Rewards app from the Google Play or App Store, connect a payment card of choice, and begin receiving discounts and offers with local shops and restaurants which they visit.
- Cash back offers vary in rebate value and customers can choose how much cash to keep and how much they wish to donate to UN Climate Change.
Lenovo – MyLenovo Rewards
- US based consumers making purchases on Lenovo.com earn a 3% rebate and can use their accumulated credit towards future purchases on the site.
- Enrollment in MyLenovo Rewards is free, and new members receive a $10 USD award for joining in the first 30 days.
- Periodic double point offers are available on selected products.
- Members can earn additional rebate amounts for completing a profile and reviewing purchases.
- There are no “minimums, exclusions, or blackouts” on redemption, but rewards do expire 6 months from purchase.
- MyLenovo Rewards are redeemable 30 days after purchase, while enrollment and other non-transactional rewards (profile completion, reviews, etc.) can be used immediately.
Giant Tiger Stores – GT VIP
- Giant Tiger is a discount retailer based in Ottawa, Canada and operates more than 250 stores across all provinces.
- Canadian customers can enroll in the program at no charge by downloading the Giant Tiger mobile app and signing up for the program.
- Once enrolled, Members can scan deals and discounts that are loaded fresh each Wednesday. Products included are grocery, fashion, and home essential goods.
- Members can scan a barcode on a selected product or provide a phone number at checkout to activate an offer.
- Additional benefits include contents, sweepstakes, and savings on participating restaurants and tickets for sporting events.
- Without joining the program and experiencing the offers, it is impossible to determine the rebate amount of this offer. We have included a link to the program FAQ’s for those of you curious to learn more.
Majid Al Futtaim – Share
- Majid Al Futtaim develops and operates shopping malls across the United Arab Emirates (UAE). Malls are designed to be destinations, and many include entertainment options including Ski Dubai, Magic Planet, and VOX Cinemas.
- The program is free to join and gives Members access to earn and spend rewards points across 2,300 retail outlets in 16 shopping malls and 11 hotels across the country.
- The Share name was created to express a sentiment encouraging Members to share experiences, “moments”, with family and friends. The program is focused on creating community and making shopping across any of its programs more entertaining and a better experience.
- Members earn points by presenting the Share App at point-of-purchase on their mobile device.
- Earning rates vary across participating merchants, according to the program FAQ’s, range from 2.5 to 100 points per 100 AED (about $27.00 USD).
- Based on the FAQ’s, the approximate funding rate (rebate amount) for the program is 1 percent.
- Points fall into a lapsed status with 24 months of no activity and expire on 36 months of inactivity.