Online Points System

[Egaladeist]

Hi HT,

It has worked for years and years because most corporations used to be the snake oil salesmen in the old west

They offer these because they know most consumers will lap it up.

Just because it's a popular gimmick to get people to come to your store and is a highly successful gimmick that does not mean it's in the consumers best interest...it's in the corporations best interest.

The reason why you can buy cheaper at Walmart, etc...is because they sell inferior quality goods...I used to be a quality control inspector...and everything is quality inspected and separated...top of the line merchandise went here...minor hardly noticable flaws ( scratches, extra flash on the edges, etc...) went there...minor, but noticeable flaws went over there...and major flaws were recycled...places like the Bargain Shop display disclaimers next to some merchandise because it's recycled or bottom drawer merchandise ( I'm sure you've seen those ' would be this " IF " ...)...

scratch and dent stuff went to places like Walmart, Sears, Zellers, etc...they sell cheaper because they sell b and c line merchandise....if you think you're getting the same quality of meat at the Price Choppers deli as you do at M&M meat Markets...ahem...you're not

You get what you pay for.

As for Petro-Canada that was their way of buying into the market...thay had to offer something to get people to go there...I remember when it first started...I remember before the first station was bought...they had to practically beg people to use their stations...that's why they started giving stuff away and offering incentives. 35 years ago I got all my tee-shirts from Midas Muffler, they used to give them away for free as a means to advertise.

Eg

[HTRegz]

Originally posted here by Egaladeist
Hi HT,

It has worked for years and years because most corporations used to be the snake oil salesmen in the old west

They offer these because they know most consumers will lap it up.

Just because it's a popular gimmick to get people to come to your store and is a highly successful gimmick that does not mean it's in the consumers best interest...it's in the corporations best interest.

The reason why you can buy cheaper at Walmart, etc...is because they sell inferior quality goods...I used to be a quality control inspector...and everything is quality inspected and separated...top of the line merchandise went here...minor hardly noticable flaws ( scratches, extra flash on the edges, etc...) went there...minor, but noticeable flaws went over there...and major flaws were recycled...places like the Bargain Shop display disclaimers next to some merchandise because it's recycled or bottom drawer merchandise ( I'm sure you've seen those ' would be this " IF " ...)...

scratch and dent stuff went to places like Walmart, Sears, Zellers, etc...they sell cheaper because they sell b and c line merchandise....if you think you're getting the same quality of meat at the Price Choppers deli as you do at M&M meat Markets...ahem...you're not

You get what you pay for.

As for Petro-Canada that was their way of buying into the market...thay had to offer something to get people to go there...I remember when it first started...I remember before the first station was bought...they had to practically beg people to use their stations...that's why they started giving stuff away and offering incentives. 35 years ago I got all my tee-shirts from Midas Muffler, they used to give them away for free as a means to advertise.

Eg

Man oh man... Everyone on this site is an expert in something... I disagree with walmart selling inferior quality products... and that comment would lead me to believe that you had never been in a sears... I disagree as well about the quality of meat at Price Choppers vs M&M's... M&M's is preprepared frozen crap... Price Choppers is fresh meat... I can see the quality of the cuts... I know if I'm getting a cut piece of meat or not... M&M's uses the left overs if anything... that's why it's prepackaged, preprepared stuff...

The bottom line is free gimmicks work.. Hell THe Jinx gives free stickers to people... And once they work.. they aren't gimmicks... If giving people a point for every dollar they spend and translating 100 points into a penny... and they can buy stuff with it... who cares if its minute.. it's better than nothing...

Either you and Nihil are both rich beyond belief... and believe in the best of the best name brands everywhere or you don't have a clue how about people operate day to day and what the average person is like..

Peace,
HT

[Egaladeist]

Hi HT,

I didn't say I was an expert...all I said was that I've worked in the capacity as a quality control inspector...and explained what my job was...my job was to inspect merchandise before it was put on a truck...so it could be determined it's destination.

And you're wrong if you think Sears is top of the line...it's not...it falls in the same category as the Brick, Temperman's, and stores like it...slightly better than Walmart, K-Mart, and Zellers but not much.

You could be right about the meat issue...I didn't do QC for a food products company...so...I could be mistaken there...but the process is the same.

And yes, gimmicks do work...I already said that...but consumers are not benefitting from these gimmicks...the cost is passed down...not swallowed by the company.

That 100 points you get, someone else is paying for, that's the fact of it...there's no free lunch in the big bad corporate world.

Consumers are fed the crap that they're getting something for free...they're not...we pay for these promotions and advertising gimmicks...and that raises the prices not lowers them.

What bugs me about gimmicks is that they prey upon the ignorance of consumers.

It's just a newer version of P.T.Barnum's Welcome to the Egress!

"Barnum's American Museum was so popular that people would spend the entire day there. This cut into profits, as the museum would be too full to squeeze another person in. In classic Barnum style, old P.T. put up signs that said "This Way to the Egress." Many customers followed the signs, not realizing that Egress was a fancy word for "Exit." They kept on looking for this strange new attraction, the "Egress". Many patrons followed the signs right out the door! Once they had exited the building, the door would lock behind them, and if they wanted to get back in, they had to pay another admission charge!

Modern museums make sure that the last thing you see before you exit is the gift shop. "

http://www.ptbarnum.org/egress.html
PT Barnum, The Shakespeare of Advertising

Eg

Hypothetically...let's say I own a gas station...and I want people to buy my coffee...so...I decide, instead of selling my coffee for 80 cents a cup...I'll go out and have 1000 cards made up...buy 9 cups your 10th is free ( cost me $40 )...I'll spend $1000 on advertising the cards...and another $400 in misc. costs associated with these cards...and I'll charge $1.10 per cup to off-set these costs...

give me my coffee for 80 cents...I can live without the gimmicks.

[nihil]

Hmmm, I think that we are digressing from the original question? it was about the implementation of a customer loyalty scheme.

Just check around the online/mail order vendors................. a lot of them have such schemes, but they are all account based and for a very good reason.

People do not naturally group together to share these things (due to inherent mistrust and a lack of communication) so the "burn rate" for the scheme is minimised, which is what the vendor wants.

Sure, have the customer set up an account online...............you have to do that for online purchasing anyway. My argument was that it is trivial to modify the EPOS system to capture transaction data against that account. Certainly no more difficult than to issue vouchers instore. Getting the customer to login and record their "points" makes for additional back office applications, when all you would need to do is parse the daily transactions instore and apply the loyalty points to your customer loyalty database. At the very least it saves printing the voucher? And there is no need to issue any cards.................. just a unique account number

Customers who are "loyal" are probably also lazy? I would not deal with a company that messed about like that I do not expect to have to submit interest demands to my bank or no claims bonus demands to my insurers, so why should I have to do it for an electronics retailer? The whole idea seems as ill conceived as mail-in rebates

Then there are the accounting implications?........................ if you have all these "anonymous vouchers" flying around, you have created a potential liability that must be provided for as a deduction in your profit and loss account. This is very much an unknown quantity as these things are obviously transferrable between individuals.

With an account and transaction based system, you have far greater control and accountability. Whilst fraud is still possible, it is much more easily prevented and detected if the loyalty bonus is uniquely and irrevocably linked to the original transaction.