"Please be informed that we have stopped issuing BestGOLD pts from 1 jul 10.Pls redeem your pts by xxx"... Message sounds familiar? I just received an sms from Best Denki to inform that they will be stopping their rewards from 1st July 2010. Thankfully I've already redeemed most of my points long ago.
Rewards/Loyalty points are expensive business. While they are suppose to retain customer loyalty, the ongoing cost to maintain staff, infrastructure and collaterals for such a programme can be quite expensive. Businesses continue to open up and close rewards programmes around the world.
Why? The hope of driving repeat sales.
In 2005, while working at now dyfunct Indigoz, I've experienced first hand the opportunities and benefits of a shared rewards programme for retail/shop businesses. While working on the one dining card, I've seen how it has influenced me and many of the clients of the company then to restaurants that we would not otherwise frequent. I went to Tony Romas twice in one month, Zambuca for a special anniversary, and Amici twice. Since leaving the company and the programme, I went to none of the above restaurants in the last 5 years.
In my opinion, flyer miles are probably the best surviving loyalty programmes in the world, I've seen few as useful and profitable.
Are you in the rewards business or looking into designing a rewards programme for your company? Please connect with me. I'm interested in hearing from your experience.
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