Friday, November 05, 2010

Clover: The 2.0 Loyalty Reward Programs

New loyalty reward programs have sprung up thanks to the Internet and smartphones. Hence, the old loyalty card usage seems to go in limbo.

I have recently discussed a lot about new ways to get customer relationship management programs going. For example, Cardstar allows you to get all your loyalty reward cards into one Iphone app. Also, a website like Checkpoint reward visits instead of purchases, which is also a new way to approach CRM.

I believe that one of the main goal of a customer relationship management program must be to ease the use of the rewards one customer gained. Indeed, at some point, if it is difficult to access your voucher, you may be reluctant to use the program.

Here are some of the traditonnal bargains, among others:

  • Need to be proactive : The customer need to send its tickets or on pack coupons to get a reward. It needs to register online with a long questionnaire.
  • Need to reach a certain amount to release its reward: You may need to reach 10€ of reward to use them, or you need to have a large amount of points to access an interesting gift. If the reward seems inaccessible, you won’t fight for it would you?
  • Need to have on you your card: Isn't there any other way to recognize you as a loyal customer?

The idea is simple: Once you click on an ad banner, Clovr will reward you by placing vouchers into your credit card. Once you will purchase something, your voucher will be automatically released.
Clovr Media delivers Loyalty 2.0 to the financial services and digital media ecosystems by bridging the gap between credit/debit card loyalty and interactive advertising in a way that is seamless and simple for consumers. Clovr Media has built the first platform that converts banner, text, video, or mobile ads into Card Linked Offers (CLOs) – delivering pinpoint targeting and accountability for online and mobile advertising. When clicked, CLOs link product discounts directly to a consumer’s credit/debit card – no point of sale integration, no mail-in rebates or paper coupons, and the discounts appear directly on the consumer’s bank statement. CLOs are an evolutionary leap forward for Financial Institutions encouraging loyalty and increasing rewards point redemption. Clovr Media’s Gateway gives advertisers the direct link between digital ad spend and consumer purchases with 100% attribution. For the consumer, CLOs are a frictionless way to take advantage of great savings while strengthening the connection with the brands they love. Clovr Media is the bridge between advertisers, brands, consumers and Financial Institutions – Welcome to Loyalty 2.0.

Waltham, Mass.-based Clovr bills its new card-linked platform as part of its “Loyalty 2.0” campaign, which can now directly link digital ad spending to consumer purchases with 100 percent attribution. The new platform will be the first of its kind to convert banner, text-link, video or mobile ads into Card Linked Offers (CLOs) automatically.
A bank’s customer would like this because when clicked, CLOs link product discounts directly to a their credit/debit card with no point of sale hoopla, no mail-in rebates and no paper coupons. Discounts just appear directly on a consumer’s bank statement.
Clovr said consumers will then feel more connected to their financial institution and put those banks “top of the wallet,” because they are being offered first crack at ads that have learned their preferences and buying habits—and won’t have to do anything to achieve those discounts except click specific ads.

You should check out this video:

Once again, we see thanks to this new system a new kind of loyalty reward programs, which is not simply based on purchase. With social media and customers taking power over companies, it becomes more and more important to create a real relationship, based on mutual knowledge.

Hence, you may know your customers thanks to your data base and data mining efforts, but your customer should also be rewarded while they are seeking for information about your brands. Information is easy to find, and if a customer wants it, it may either go to your competitor’s website or yours.

I really like the concept. What about you?