Universal 'Loyalty Card'

connundrum

Every so often I think I've a super idea. Then I think that someone must've come up with it already. Then I think that there must be a huge wall to climb over to get the idea going.

Today, as I was offered my 3rd loyalty card (1st was Applgreen Garage, 2nd was Tesco and 3rd was a an Esso coffee stamp card) I thought - why can there not be one key chain barcode product that would eliminate all other cards?

I do realise that not all retailers would want to be lumped in together on such a scheme, but surely they'd benefit from an increased amount of data on their customers as opposed to a) the customer who doesn't take an individual retailer's loyalty card or b) a customer who has an individual retailer's loyatly card, but can't find it in the pile of other loyalty cards they carry at all times.

A more intelligent card/barcode system could (?!) do away with needing physical vouchers at the till.

So, you'd have one barcode on your keychain. This would be swiped at the till for each purchase in every participating store. The information gathered from this transaction would be sent to a central point, and then distributed to the head offices of the retailers for them to do with what they will. I'm sure that there may be data protection issues to be sorted through.

Customer wins as they can benifit from more offers from participating stores, having to carry less crap etc.

Retailer wins as they are provided with more information on sales/demographhics etc, and on a more constant basis.

Is the above workable?

The only organisation I could see producing such a product is An Post with their One4All brand. They'd already have a database of retailers and could package it nicely for them.

Again, just an idea that I assume many others have had before.

sandin

Green Shield Stamps was the original, the Instore Stamps tried it again back in 90's and failed.

Others have done up fancy brochures etc but never seem to get off the ground.

Reasons

Different reward values for different retailers.
Third party costs adding quite a lot
Information garnered not the best.

and most importantly, customer doen't see the reward from the indivudual retal and therefore the "satisfaction" from getting the reward is not there.

dulpit

The UK has Nectar Cards (http://www.nectar.com/NectarHome.nectar) which covers a bunch of shops, seems to be what you're describing...

connundrum

dulpit wrote: »

The UK has Nectar Cards (http://www.nectar.com/NectarHome.nectar) which covers a bunch of shops, seems to be what you're describing...

Ah, cool. I'd always associated Nectar specifically with Sainsbury's.

Well then yes, thats what I was describing.

The rewards system needs to supersede the individual retailer's rewards system i.e. the retailer buys in. And the customer can see an actual value to collecting points.

All you'd need is an operator to properly organise it so that retailer information is relevant, as are rewards.

Stamply

Its an extremely complex market with infrastructure costs, collecting and distributing points and rewards, sales (getting merchants and consumers on board in a chicken and egg scenario), recording sales, preventing fraud, not slowing down the payment process at the cash register, etc, etc...

You've got ZAPA in Ireland, and they just wasted enormous amounts of money rolling out infrastructure using smartphones and went into administration to the point that the founder got on his yacht and saled out to sea, never to be seen since.

You'll probably be months thinking about this before you come up with a specific niche within the space that is actually viable, judging by your post, or else you'll drop it soon.

These schemes take two forms:
1) relationship marketing, in which the goal is to build channels of communication between the merchant(s) and consumers to increase footfall and purchases in some way

2) transaction marketing, which is all about data and recording precise transactions - this can only be valuable if integrated into the cash register (EPOS).

These two areas overlap at the identity of the consumer.

C

billybunty

Well it would wipe out the 15 or 20 or so cards i carry around!
Defo a great idea & would be great if you could
I see the pros and cons, but good selling point really i think is that 1 card would actually increase customers.
People mostly get emails these days anyway showing points balances
Big stores may be slow to part with their existing systems
I'm sure there are lots more readons for and against, but again, one card in my purse is better than all the ones i have right now!

Monty Burnz

By definition, you can't be loyal to everyone. Hence no universal loyalty card.

Peterdalkey

Monty Burnz wrote: »

By definition, you can't be loyal to everyone. Hence no universal loyalty card.

Monty hit the nail on the heady, great idea for the consumer but a supply side player would want to be mad in the head to share. Why would say Dunnes, Tesco, Superquinn or the symbols want " their" customer to be able to use the same card in a competitors store and earn rewards? it defeats their objective of "owning" the customer and having exclusive use of the data and buying preferences/history.

It might work for smaller retailers but I would doubt they would pay a decent fee. Remember the old Countdown Card from 20 years ago or more!

Cheers

Peter

connundrum

Monty Burnz wrote: »

By definition, you can't be loyal to everyone. Hence no universal loyalty card.

I only referred to it as 'loyalty card' so that we all know what we're talking about. I would rebrand it with something markety like 'The One Card' etc.

Not promoting loyalty, but promoting an advantage to using the card in retailers who take part in the scheme.

Peterdalkey wrote: »

Why would say Dunnes, Tesco, Superquinn or the symbols want " their" customer to be able to use the same card in a competitors store and earn rewards? it defeats their objective of "owning" the customer and having exclusive use of the data and buying preferences/history.

Again back to the point that with one card, you'd be guaranteed of gathering info on your customer whilst they are in your store.

Today I was in Woodies, Tesco and Apple Green garage. Have cards for all, left them in the car. No info for anyone, no points for me.

A retailer would be naive to think that they own the customer. They may as well maximise info exchange whilst they have them in store.

Peterdalkey

Loyalty cards are a huge and technically sophisticated operation. The retailers reward customers for buying in their stores and then capture the data. It is the data that has the value and can be used to target offers and be sold to product manufacturers.
To get a flavour of the scale of money involved for just one retailer, see http://www.independent.co.uk/news/people/profiles/cashing-in-the-couple-who-dreamed-up-tesco-clubcard-2054543.html

Slunk

I thought I saw an app recently that allowed you to scan all your cards so you don't need to carry them all with you. I reproduces the barcode on screen to scan in store.
Only things is the likes of coffee shops who use ink stamps for buy five get next one free etc.
Subway app has a qr code for them to scan and you receive points

sandin

Thinking back, Superquinn tried to add in load of retailers at one stage to their card. Back about 1993-1996.
The retailer gave points vouchers to the consumer which were then added at the till in Superquinn.

Stamply

Slunk wrote: »

I thought I saw an app recently that allowed you to scan all your cards so you don't need to carry them all with you. I reproduces the barcode on screen to scan in store.
Only things is the likes of coffee shops who use ink stamps for buy five get next one free etc.
Subway app has a qr code for them to scan and you receive points

Very faulty design, screen absorbs the infrared from scanner.

Need special scanners but even when rolled out can cause problems if consumers don't remember to turn up the brightness on their phone.

rewardshunter

Looks like that may be in the works.

http://www.prweb.com/releases/2012/8/prweb9830288.htm