The success of any business is closely tied to the degree of motivation of its employees. A happy and hardworking staff member leads to high levels of productivity, which in turn leads to profitability for the entire organisation.

It’s hard for any business to maintain a level of success when employees aren’t feeling happy and fulfilled; satisfied employees make positive contributions to the company’s bottom line.

Pinpoint’s team of business professionals have put together the How to Motivate Staff whitepaper for your convenience. Just complete the following quick form and you’ll receive an email with the download link.

Download “How to Motivate Staff” now

The i-Points program through Pinpoint (http://pinpoint.benefits.com.au) is proving to be an effective method for motivating and rewarding customers, employees, and/or distributors. This fully-customisable incentive program is an easy-to-use online system that awards points for specific criteria. The accumulated points can then be redeemed for rewards chosen by the program manager; rewards often include gift cards, travel, products, or experiences.

Pinpoints clients have successfully used the i-Points system for a number of applications, including offering loyalty programs to their customers and motivation systems for their employees. The i-Points system consists of a general process that is proven and consistent, but then multiple components of the system are fully customisable so that they can be uniquely tailored to a given client’s situation.

Pinpoint staff work with the client to determine the goal of the incentive and rewards program. Activities or processes are linked with points that can be accumulated, and the rate at which points are earned is specified by the client. The i-Points system is fully automated in an online environment, which ensures convenient access at any time for both the users of the i-points program and the i-Points administrators. The client also selects the point redemption award levels and the rewards themselves, which can vary from specific products, travel awards, and prizes to gift cards, including Universal Gift Cards that feature the client’s own branding.

The primary uses of the i-Points system are to attract, retain, and reward customers and to reward and incentivise employees. Many i-Points clients use the i-Points system to motivate their sales force and their call centre staff. In addition, some clients have also found the i-Points system to be useful in rewarding their vendors, which has lead to to improved overall vendor relations.

Clients who are currently using the i-Points system have noted a number of benefits, including:

• Increased achievement of sales goals by salespeople;
• Improved employee productivity levels;
• Increased sales revenues;
• Higher scores in customer satisfaction surveys;
• Enhanced employee satisfaction;
• Better relationships with vendors; and
• Improved retention of company employees.

In particular, one i-Points client notes that within their first year after establishing an i-points program, their i-Points member participation increased by 73%, and their sales increased by 18% over previous levels.

i-Points is the most powerful and economical points, rewards and recognition program.

Well, 12 tips actually. You get two extra bonus tips.

I’m sure you remember the maxim “under-promise and over-deliver”? Well, it’s no surprise that elements of surprise & delight will enhance any recognition & incentive program.

Tip # 1 Program must link business goals with performance levers

This is probably the toughest part of designing a successful program.

Getting an alignment between the main levers on profitability or sales or market share with the correlative tasks or behaviours is hard enough.

But then to calibrate them so their relative impacts can be acknowledged and so each can be given appropriate incentives requires fine judgement.

One thing you need to grapple with is whether to reward inputs or outputs or both.

Clients often choose to blend both input and outputs to get a composite picture of achievement. That tends to assist new staff to achieve points or rewards.

Consider too the difference between a company selling widgets in a high-speed sales transaction setting versus a company whose salespeople are more like consultants where the sales cycle may extend over many months.

And business goals vary between businesses in different industry sectors (e.g. telco versus accounting), and for businesses in different life-cycles within an industry (e.g. start-up business unit versus a well-established competitor).

For all these reasons, one-size does not fit all. Tailoring a points-earning regime that is right for you in your industry for this year is the task.

Nevertheless a generic, entry-level platform like iPoints can be deployed quickly and economically to deal with the points-burning side of the equation.

Tip # 2 Program must move the masses

Your top performers will perform well, despite what you do. So don’t waste your money on a program that targets only those top performers. Sure, you don’t want to exclude them from appropriate rewards – that would be de-motivating – but neither do you want them to be the only beneficiaries.

Indeed the greatest opportunity lies with the middle 60 to 70%. These are the people who carry a lot of your business. They want to know what they are supposed to do, and how to do it. When you motivate them to do better, the whole organisation moves forward.

An excellent way to ensure worthy people other than the elite top 5% are recognized and rewarded is to run a peer recognition program.

Tip # 3 Program concept must be simple

Adhering to the KISS principle is vital. Complicated rules and qualifications and regulations will doom any program, even if other aspects are excellent.

In our experience, making a program too complex is the first of two big traps for the unwary.

Tip # 4 Program must be ongoing to earn enduring commitment from staff

And there are several requirements for a program to be ongoing:

• it has to be designed well
• the boss must demonstrate commitment to it
• staff participation rates need to be good
• it must be relevant and the rewards achievable

Tip # 5 Program must yield positive ROI or it won’t be ongoing!

A successful program is neither too lenient nor too tough. While mediocre results should not be rewarded – unless they represented a great improvement from a low base – neither should hurdles be set so high they are de-motivating.

In our experience trap #2 is to make hurdles unreasonably tough.

Tip # 6 Programs based on Key Performance Indicator (KPI) achievement may need a points currency

There are several reasons for using a points currency:

• Greater flexibility
• Points can be used in conjunction with cash
• Points facilitate equity across divisions or functions.
• Points can create more perceived value per dollar.
• Participants can obtain rewards quicker if they are offered “points plus pay” rewards options

Tip # 7 Recognition is as important as the tangible incentives

Most people need to feel special and valued. Most good performers bask in the limelight of recognition. While they appreciate the tangible rewards they earn, the absence of any public recognition would be a vacuum. And remember that even an informal department public recognition gathering has an impact on everyone attending – not just the winners. These are opportunities for some “surprise and delight”: rather than predictable announcements at the end-of-month staff meetings, do something different – put some icing on the cake . . . when it’s warranted.

Tip # 8 Communicate, communicate, communicate

Why? Because regular communications keep the program top-of-mind.

Program objectives and encouragement bear repetition, even after a high-impact launch. And successes and milestones need to be celebrated.

Tip # 9 Wide choice of rewards

We’ve found that rewards must cater for a wide range of tastes and preferences. Also they need to be real, worthwhile and fresh. You don’t want anyone to be de-motivated – “I don’t want any of those things”.

Avoid cash. Cash gets lost in household funds and has no lasting value. Cash has no “trophy value”. However the negotiability of cash makes it very attractive for some recipients.

One way for you to meet that need while getting kudos through its trophy value is to offer our new Universal Gift Card – spending power wherever VISA is accepted.

Tip # 10 Rewards must be achievable by the masses

Unless a program is extraordinarily generous, the reality is that some employees will earn relatively few rewards or points. Yet they deserve some reward for their achievements, and the program will gain credibility and support from the staff precisely because it allows most people to derive some benefit from it.

Off on a little tangent now: please don’t forget benefits for all staff – independent of recognition and incentive programs. Thousands of employees have taken advantage of Pinpoint-managed benefits programs for great savings on merchandise, travel and entertainment tickets. And we can set up easy salary-sacrifice arrangements for the purchase of FBT-exempt items like laptop computers and PDAs.

Tip # 11 Program must be flexible

Because the business imperatives of your industry and company change as time goes by, you must be able to update your recognition and incentive program easily. We suggest evolution rather than revolution – to give it continuity.

Tip # 12 Great execution

We shouldn’t have to say it, but great execution is another ingredient for success. Both the program launch and its ongoing communications and operation deserve care, thought and energy. Outsourcing may well be the way to go.

Your checklist

For more information about Pinpoint sales & channel incentive programs, employee recognition & rewards or customer loyalty programs

call 02 9352 3888or email us

The art of reward selection is one of the most important factors in the creation of a successful incentive programs, and one that distributors and resellers sometimes overlook as a way to add value to customers. Here are some things to keep in mind when helping customers create effective incentive programs.

The most obvious goal of any reward or gift program is to affect or change behavior and feelings – to motivate consumers to buy, dealers or salespeople to sell, plant employees to follow safe work practices, and people to feel more loyal, etc. But that’s often not the only goal or the only effect. A reward program can have supplemental goals: To communicate a business message, to support a brand message, to strike an emotion, and engage the target audience in a way that makes them identify with the mission and objectives of the program.

In fact, in many cases, these last supplemental goals – communicating, engaging, branding, etc. — may be as important as the main goal of the program. Especially important is striking an emotion, creating a buzz, or fostering engagement. Engagement is what supports the continuation of the target behavior long after the reward program is over, according to studies on employee attitudes and financial performance published by the Forum for People Performance Management and Measurement at Northwestern University and the International Society of Performance Improvement, among others. And that’s what makes finding the right reward so critical to meeting the goals of an end-user’s program.

If the rewards or gifts don’t spark the participant’s interest or feelings, and support the program’s objectives, then goals probably won’t be met, and the client likely won’t come back. The right reward will both motivate desired near-term behavior and help achieve the level of engagement necessary to create a long-term effect. End-users will get better results if they understand that reward selection is a serious, systematic process that requires expertise and a firm understanding of a client’s objectives, audience, culture, and other characteristics – not much different than selecting the right magazine or television program from an advertising campaign.

In the end, reward selection is not a matter of simply selecting from among options such as cash, gift cards, branded merchandise, or travel. It’s a matter of selecting a reward that will convey the right message, engage employees to commit to a high level of performance, and meet a company’s sales or other behavioral goals. The residual or trophy value of well-chosen branded merchandise rewards can be the key to achieving all of these goals.

Incentive program sponsors have a lot of reward options to choose from, ranging from cash to branded merchandise and elaborate travel programs, and distributors and resellers can play an important part in helping incentive users select the reward best suited to reaching the specific goals and motivating the specific audience. But first they need to have a basic understanding of the role of cash versus non-cash awards and about how, in a world moving more toward targeting individuals, rewards become a powerful branding tool as well as a motivator.

While employees and other incentive reward recipients will often tell you that they prefer cash to other types of incentive rewards, the research shows that cash is a poor motivator for a number of reasons, but they all add up to the fact that there is little “trophy value” to cash:

* Most people don’t like to talk about cash awards, particularly the amount, so cash programs do little to generate the buzz surrounding an effective incentive program.

* Cash often gets spent on everyday items or used to pay bills, and therefore is quickly forgotten.

* Cash incentives are often confused with salary and bonuses, and get lost in the compensation and benefits equation. The termination of a cash incentive program can become a demotivator because it is perceived as a cut in pay.

Tangible, non-monetary awards, on the other hand, offer significant benefits over cash. Dr. Scott Jeffrey of the University of Waterloo in southwestern Ontario prepared a study for the SITE Foundation that documented some of the advantages of tangible non-monetary rewards over cash. For instance:

* The positive attributes associated with tangible, non-cash rewards such as branded merchandise are often ascribed a higher perceived value than their actual cost.

* Branded merchandise and other non-cash rewards are perceived as separate from compensation, and stand out as rewards for performance, enhancing their long-term motivational effect.

* Program participants are more highly motivated by rewards that they could not normally justify buying for themselves.

* Branded merchandise and other tangible non-cash rewards have high trophy value, bringing greater prestige to the recipient at the time of the award and having a longer-term residual effect that can result in increased engagement in the sponsoring company’s goals and mission.

This last finding is especially important when you consider the supplemental goals of many incentive programs – communicating a message, branding, engaging participants, etc. Rewards are really part of a unique communications medium — whether it’s a sales or dealer incentive, and especially if it’s a consumer program – for getting a motivational message across to a target audience.

In fact, for many years consumer marketers who use premiums have known that the product – including the brand affiliation and the qualities conveyed by that brand — is critical to the message. In the sales and dealer incentive area, companies are beginning to understand the value of selecting the right reward, to take advantage of unique opportunities for brand alignment and other communications goals as well.

In recent years, a lot of companies using incentive programs have begun to use catalogs and gift cards to increase the choices available to participants and thus increase the program’s appeal and motivational value. What they overlook is that they lose the communication and engagement impact of their programs and may miss out on their program’s important supplemental goals. They lose the potential of the message and trophy value that attaches itself to a well-selected branded merchandise award, as well as the residual value of brand association.

What Resellers Should Know About the End-User

In order to help their customers get the greatest value from their incentive plan or promotion, distributors and other resellers should help them sort through their reward options to help them make the right reward choice – one that will best achieve their program’s short-term goals and create a longer-term residual effect. And the more the reseller gets to know about its customer, the better it will be able to assist in creating a successful reward plan.

The first thing a reseller has to know is the demographics of the group that the incentive program is targeting. Whether it’s aimed at consumers, dealers, salespeople, or other employees, the first question is: Who is the program trying to reach, and what are we trying to get them to do? The second question is: What type of reward is going to be most effective in changing their behavior?

In order to help the incentive end-user find the reward that’s most appropriate for its target audience, the reseller needs to learn as much as possible about what the company’s business is, how it goes to market, what their objective is at this particular time and for this particular program, who their audience is going to be, what are the demographics of that audience, what types of incentive programs the company has used before, and how they have worked. It also helps to find out what competitors are offering.

* Demographics are of primary importance. In selecting the reward, resellers should look for something that will work for the demographic of the target group. Is it a sales incentive targeting veteran salespeople? Is it a dealer incentive targeting owner-operators? Is it a consumer program targeting young males? A belt buckle might work for the consumer promotion, but not for the dealers. Keep in mind that what works may not always be obvious. Mary Kay cosmetics, for instance, has run successful incentive programs using fishing rods and reels as rewards, because the ultimate recipients of these programs often involve the entire family.

*Matching your brand with the right branded awards. The brands selected for your client’s reward program say a lot about its own brand. Look for rewards and gifts that reinforce your client’s brand image and positioning.

* An honest budget figure. How much can the user realistically spend on rewards given the anticipated value or sales that can be expected from the improved performance? And given that budget figure, and the level of performance being called for, what is an appropriate reward or rewards?

*It’s good to make sure the client is clear about the purpose of the reward: Is it to be viewed as compensation—for example, something that can be expected in following years—or special recognition that may or may not happen again in the future? If the purpose involves compensation, then cash is the best bet. If the goal is special recognition for performance, a non-cash award makes more sense because recipients will be less likely to expect it in the future.

* It’s also important to get a good timeline, especially if the reward selection is going to involve adding inventory or requires offshore manufacturing. And in particular, if the program is going to involve any special handling or packaging. When does the end-user want to get started? How quickly are participants likely to start redeeming awards? How quick a turnaround is needed upon redemption? How long will the program last?

* Logistics issues should also be discussed with the end-user, specifically drop-shipping requirements, and again, if any special packaging or personalized mailing is involved, as is often the case in a promotion or incentive program.

* Finally, resellers need to understand the price-value relationship for the reward option they are offering to end-users. In other words, how much of the cost to the end-user winds up in the hands of the participant in the program when he redeems his reward. For gift cards and some catalog programs, there can be significant markups. Another factor to keep in mind is that the “perceived value” of branded merchandise is often greater than the actual value, according to the SITE Foundation study cited earlier.

What the Reseller Needs to Know About its Supplier

In addition to learning as much as possible about the end-user to aid in reward selection, distributors and resellers need to learn all they can about what their suppliers can offer, both in terms of branded merchandise and special services that might enhance the perceived value of the merchandise, and aid in meeting some of an incentive program’s supplemental goals. For instance:

* How are product prices established and what is the value-added associated with those prices? Are there value-added services that the supplier is willing to include in the price? For example, is the supplier willing to: 1.) hold the price for additional orders at a later date; 2.) drop-ship the order; 3.) provide high-resolution images and other collateral needed for program materials. There are companies known as incentive/national representatives and multiple resource companies (MRC) that officially represent manufacturers in the corporate marketplace offering the same price as the manufacturer. Typically, the national representative does not handle the billing but the multiple resource company does. In this case, the MRC would be considered the supplier.

* Can the supplier help end-users customize their reward offerings? Some suppliers can customize and personalize the reward in any way that the end-user requires. A lot of users like to add thank-you cards to the reward products. Others might want to add other, non-program items to the reward to enhance its perceived value to reinforce a corporate or program communications goal.

* Can the program be offered online? While online redemption is growing in popularity, some companies, and some participants, prefer traditional print brochures and redemption by phone or mail. Can the supplier provide either an online option, or a combination of online, telephone, or mail redemption?

* Can the user monitor results of the program as it is ongoing? Ask the supplier if it can offer both online and hard copy reports on the progress of a program as often as necessary. For the online program, it can monitor hits as well as points earned and points redeemed, so users have an ongoing report on how much interest and excitement is being generated by the program. Can the supplier offer up-to-date tracking information that includes quick links to the shipper (UPS, FedEx, TNT, etc.) so that users can determine where every single order is on any given day?

* How quickly can product be shipped? The level of inventory that a supplier carries of the products that it offers will affect its on-time delivery. Some suppliers can promise delivery in three to five days. Others will guarantee only two- to three-week delivery.

* What logistics services does the supplier offer? Can the supplier drop-ship individual rewards anywhere in the country? Can it also warehouse product and accommodate special handling and customization?

* What other support services does the supplier offer? Full-service incentive houses can do as much or as little in terms of administration, tracking, reporting, etc., as the customer requires. The supplier can create an online program, develop a brochure, create gift certificates – in short, it can do whatever is necessary to ensure that the branded product program is a success for the end-user.

Written By: Norma Jean Knollenberg CPIM, Top Brands Inc.

For more information about Pinpoint sales & channel incentive programs, employee recognition & rewards or customer loyalty programs

call 02 9352 3888or email us

Say sorry with a special token, and save a customer.

Everything But Flowers won the opportunity to provide a program for one of Australia’s largest banks.

The objective was to provide a convenient and easy to use catalogue of gifts, available to staff, to supply a suitable item/gift for dissatisfied customers / complaints as a token of apology.
Gifts were sourced at a number of different price points and themes, enabling staff to align the gift options with the level of customer dissatisfaction. ie tiers can be set as guidelines for gift options, eg $20, $50, $100, $200 +.

Range of gift options include: Gift vouchers, flowers, gourmet hampers, movie passes and other suitable items – all beautifully presented.

The bank attributes the success of this program to, Everything But Flowers ability to:

• provide the end to end solution, from the sourcing of the range of gifts, catalogue management, ordering and customer delivery, tracking and reporting.
• Our range, Everything But Flowers does it all, the client includes a message with the order that is personalised and sent with each complaint gift and cost codes are allocated and tracked for the client to manage costs and accountability.
• The excellent service and quality
• Value for money

The program is national and handles over 10,000 customer complaint gifts per year.

“This Improving Customer Relations gesture introduction has really increased employee morale for my region- it’s not only the customers that have been blown away but the staff who are so amazed by customers making an extra visit or call to the branch just to say thank you for such a great gesture. I don’t think the staff realized the impact that this would have on customers until they called them back full of excitement and gratitude.”

For more information about Pinpoint sales & channel incentive programs, employee recognition & rewards or customer loyalty programs

call 02 9352 3888or email us

i-Points is more than a loyalty and incentive program – it is an end-to-end online reward solution.

An i-Points program in a sales environment is a management tool to change behaviours and build employee loyalty and therefore customer loyalty. It can be tailored and customised to ensure your rewards are relevant, within your budget and right for your program.

Our record of continuous expertise in this field means we can:

• build an online program that is relevant to your organisation and its key strategies
• offer the largest range of everyday and luxury rewards, including gift cards, vouchers, technology, travel and experiences that will truly motivate your employees
• use a points and communications platform that gives flexibility and superior functionality

More reasons why i-Points is the perfect solution for you:

• tailor / customise to meet your needs/branding
• launch within weeks
• quick to market
• best in class fulfilment
• choice of behavioural parameters and tiers
• select your own catalogue of rewards
• thousands of rewards to choose from

For more information about Pinpoint sales & channel incentive programs, employee recognition & rewards or customer loyalty programs

call 02 9352 3888or email us

In mid-May last year we saw the rules affecting the salary sacrificing of laptops, PDA’s and other FBT exempt items change – but the benefits of salary sacrificing for employees are still available and it doesn’t necessarily mean extra work for HR or Payroll managers.

Under the new rules, the FBT exemption will be limited to one item a year for each type of eligible work-related items. These items, including laptops, will have to be used ‘primarily’ for work. What does ‘primary work use’ mean? ‘Primary’ does not mean the ‘amount of time’ you spend on the laptop but relates to the intention of the purchase, for example is it for ‘a work related purpose?” Does the employee ever check work emails at home? This is a work related purpose.

For HR and Payroll managers, it means you should ensure a thorough audit trail, the work test for laptops is similar to the one that applies to mobile phones. Most employers ask staff to sign a declaration at the time of purchase, stating that the item is used primarily for work.

Checklist for Employers and Payroll Managers:

1. Be aware of the new rules. Familiarise yourself with the options available for Salary Sacrifice – Check out the Australian Tax Office web site http://www.ato.gov.au
2. Ensure that employees know what they can salary sacrifice and what they can’t – this depends on the type of company you are and what you want to offer. The most popular option is the laptop.
3. Have an audit trail / check list in place – this needs to be maintained by the payroll department and include all the relevant documentation. For laptop purchases this should include the following:
   • Employee declaration
   • Tax invoice / receipt of the purchase from the supplier as evidence of laptop purchase.
   • Ideally be aware of the source of the product and purchase – ensure reliable suppliers.

If you need a laptop for work (or to do work tasks on the laptop), then salary sacrifice is still available to you and still means you are getting a better deal.

A great add-in at low cost to an employee benefits program

For more information about Pinpoint sales & channel incentive programs, employee recognition & rewards or customer loyalty programs

call 02 9352 3888or email us

In times of high economic stress and layoffs, it can be difficult to maintain employee morale. Greening your business, and involving everyone in the process, can keep people motivated and help your company ride out the storm. They will respond even more enthusiastically if the organization is getting lean and green for the dual purposes of environmental concern and profit. And here’s the best part, given the severity of the downturn: Increasing employee excitement and changing behavior can cost very little.

I suggest approaching your people on three levels: First, support their efforts at home. Wal-Mart’s Personal Sustainability Project has allowed more than 500,000 workers to make and keep commitments to their planet and to their health by, for example, using less water or biking to work. Second, form “green teams” to harness environmental concern and tackle symbolic eco-waste around the office (for instance, by eliminating plastic water bottles). Third, and most important, encourage workers to move past this base of awareness to focus their energies on the core business. The ultimate goal, especially during a recession, is to improve your company’s performance and competitive position through green strategy.

Getting employees excited about new, low-cost ways of operating—or about creating products and services that help customers reduce their environmental impacts—will engender an extremely loyal workforce. Better yet, these newly inspired workers will position your organization for a quicker postrecession recovery. Ray Anderson, the founder of sustainability leader Interface, credits his employees’ eco-efficiency efforts in the 1990s with rescuing the flooring company during the last real estate crash (fueled by the dot-com bust). But the sustainability work did more than just slash hundreds of millions of dollars from Interface’s cost structure; it also kept people engaged through the economic rough patch. “In my 52 years of business,” Anderson says, “I’ve never seen an issue galvanize people in a company like sustainability.”

Written by Andrew Winston, Harvard Business Review, September Issue 2009

For more information about Pinpoint sales & channel incentive programs, employee recognition & rewards or customer loyalty programs

call 02 9352 3888or email us

An increasing number of marketing programs in the Australian market are using the power of integrating loyalty and frequency techniques. Why integration? Whether you refer to loyalty marketing or frequency marketing, the goal is usually increasing revenue. And there are only two ways to increase sales:

• More customers
• More sales per customer

Every aspect of loyalty and frequency marketing stems from these goals. And once you break these tasks down further, it is clear how frequency and loyalty techniques can be combined for greater effect. Add in your marketing goals, and it becomes evident how a combination of techniques can be more effective.

New customers respond better to introductory offers if they also are made to feel welcome. Conversely, a great welcome without an incentive might not work as well.

Retaining active customers is probably the major focus for most businesses, yet so many programs emphasize only points-based rewards, ignoring recognition-based benefits.

How well does your program rate on the frequency and loyalty appeals in the above table?

Appeal to the whole brain
I have come to believe in the power of the “whole brain” approach. A variety of appeals can be made to both hemispheres. For example:

Developments “down under”
Increasingly, program managers are leveraging the integration of loyalty and frequency. In the Asia Pacific market, particularly in Australia and New Zealand, a number of programs are showing the way.

ANZ Bank Premier Program
ANZ was the first bank in Australia to give special recognition to its high net worth cardholders by providing special lounges at many of its city branches.

In addition to its points-based rewards, ANZ offers members card access to the Premier suites, a private and more luxurious environment where they can enjoy greater recognition and personal attention. In its newest Investment Center in Sydney, the Premier lounge features interactive screens and Reuters monitors which allow members to conduct on-line investment transactions in luxury and privacy.

Morgan’s IGA Supermarket Extra Shopping Power
Called Extra Shopping Power, Roger Morgan’s points-based program adds a unique emotional appeal: community spirit.

In addition to earning points in Morgan’s Supermarkets, members earn and redeem rewards in a range of non-competitive retail outlets in the towns’ business districts, helping to keep the local shopping dollar in the local community. Donations are also made to local charities.

My Chemist’s My Chemist Card
A small chain of pharmacies in Australia, My Chemist has a thriving points-based program that is especially effective because the close personal attention that cardholders enjoy. One can sense that this loyalty program is part of the fabric of My Chemist’s business, not merely a marketing scheme.

Regular newsletters contain exclusive member offers, such as half-price perfumes, give the perception of added value. Another great feature is that membership card doubles as a rechargeable phone card.

Lincraft’s Lincraft Club
Lincraft sells fabrics, haberdashery and crafts and its Lincraft Club is one of only a handful of programs that charges an annual membership fee ($23). In exchange, members earn a 10% discount on all purchases and are encouraged to make repeat purchases to recoup their initial investment. This tactic is quite different from the concept of accumulating rewards for a future saving.

Lincraft also offers customers a Sewing School.

Adairs’ Linen Lover’s Club
Similar to the Lincraft Club, Adairs charge $27.50 for a two-year membership. This allows members 10% off all regular stock items and 5% of all discounted items. The latter is especially attractive as most retailers avoid “double dipping” of incentives.

Pukekohe New Zealand’s Pukekohe Shopping Card
Pukekohe, a small town in New Zealand, offers the points-based Pukekohe Shopping Card rewards program. As all local merchants are eligible to participate, the program’s goal is to prevent shopping dollars from being drawn away to nearby city of Auckland.

The card carries the town’s branding, in the hopes of appealing to local community spirit.

Also noteworthy is that the rewards scheme operates on existing bank-owned EFTPOS terminals in retail outlets allowing a range of independent merchants to share a common technology platform.

National Australia Bank Gold Rewards
The first premium credit card program in Australia, Gold Rewards, offers its affluent members aspirational rewards such as travel, food, wine, restaurant meals and accommodation, as well as points in the Qantas Frequent Flyer program. In addition to travel rewards, members may redeem their points for shopping vouchers at partner retail outlets.

David Jones Department Store Instant Rewards
Instant Rewards is really a calendar of regular direct mail offers limited to charge cardholders, and yet it is positioned as a loyalty benefit of the David Jones store card.

The retail chain’s current sales success suggests that it may have made a good decision to avoid traditional points rewards.

Add value to points rewards to achieve true loyalty
In today’s marketplace points are no longer a sustainable advantage. Like the programs I have mentioned, look at adding value, new services, more soft benefits and emotional appeal to add a true loyalty flavor to your marketing program.

Source: Colloquy Volume 9 Issue 2

For more information about Pinpoint sales & channel incentive programs, employee recognition & rewards or customer loyalty programs

call 02 9352 3888or email us