If you are in charge of designing or revamping a loyalty program, it can be useful to seek inspiration from others companies’ programs. Recently, Colloquy, a LoyaltyOne company, released a LoyaltyScan database that can make this research much easier. The database contains information about the background and program design for 500+ loyalty programs around the world, and includes details such as program launch date, point earning mechanism, hard and soft benefits offered, member communication, data collection, and total enrollment.
To illustrate the use of the LoyaltyScan database, I pulled together a selected list of loyalty programs from the retail sector and compared their designs below:
| Borders Rewards | Barnes & Noble Membership | DSW Rewards | Best Buy Reward Zone | |
|---|---|---|---|---|
| Products | Books & CDs | Books & CDs | Shoes & Accessories | Computers & Electronics |
| Launch Date | July 2007 | April 2006 | September 2006 | 2002; Relaunched September 2006 |
| Joining Requirements | --Free --Sign up online or in store | --$25 annual fee --Sign up online or in store --Extra bonus (20% coupon) for online sign-ups | --Free --Sign up online or in store; --Membership card optional (use phone number instead) | --Free --Sign up online or in store |
| Point Ratio | Does not use points but directly use consumers' qualifying purchase total | Not point based | --10 points per $ on regular priced merchandise; --5 points per $ on clearance merchandise. --Premier members earn extra 50% more points per dollar spent | --1 point for each $1 spent in store or online --Premium silver members get 25% bonus points |
| Point/Program Currency Expiration | Fixed: end of calendar year | N/A | Rolling: after two years of inactivity | Rolling: after 12 months of inactivity |
| Hard Rewards | $150 qualifying purchases = $5 Borders Bucks toward future Borders purchases | --40% off hardcover bestsellers; --20% off adult hardcovers; --10% off almost everything else online and in stores. | 1,500 points = $10 reward certificate toward future DSW purchases | 250 points = $5 reward certificate toward future BestBuy purchases |
| Reward Redemption and Expiration | --Redeem online or in store --Expires the end of the month in which the reward is issued | Show membership card or input membership number at check out | --Automatic issuance of reward certificate when earned; --Certificate expires after 180 days | --Online or in-store 5 weeks after reaching threshold -- Certificate expires after 90 days |
| Soft Benefits | Exclusive in-store offers and special weekly coupons tailored to their interests as indicated at enrollment, plus the latest news, recommendations, all via email | --Invitations to book signings, readings and other members-only events --Special promotions throughout the year | --Monthly email newsletter --Premier members have a special email and phone number reserved just for them. | --Articles and insights from the tech pros at CNET --Member-only offers and giveaways --Special bonus point offers --Premier Silver members Point Banking and Exclusive Rewards; Member-Only Events; Dedicated Premier Silver Helpline; Free Shipping at BestBuy.com; Extended Return Policy; and Complimentary Special Offers from Geek Squad |
| Program tiers | None | None | Premier membership after 6,000 points earned in a calendar year | Premium Silver membership 31 days after $2,500 of qualifying purchases during a single calendar year |
| Program Partners | None | None | None | Netflix Barnes & Noble Expedia.com Theater Seat Store 1-800-FLOWERS.COM Sony Music Teleflora Rewards Network |
Caveats
- There is no clear indication from Colloquy on whether this database will be updated frequently. So if be sure to verify data accuracy down the road.
- Not all data are available for all programs.
Despite these caveats, LoyaltyScan can be a valuable resource to check as you define your own loyalty program parameters.
2 thoughts on “LoyaltyScan – A Great Resource on Loyalty Program Design”
Comments are closed.