Cup of rewards – Loyalty marketing

26 Nov

Today I saw an ad for Nescafes’ new loyalty rewards program called Cup of Rewards which I thought was an interesting idea. As I have discussed in one of my previous posts, loyalty programs (which essentially this is in the disguise of a “we love our customers, lets rewards them” idea) are an interesting marketing beast that many marketing brains question the impact of.

I find this Nescafe idea particularly interesting as it is for a supermarket item which I assume would be purchased once every 2-4 months or so depending on the persons caffeine addiction. That is potentially infrequently and thus may not carry the loyalty through once the initial burst of “rewards” excitement wears off and they realise that they are going to have to drink a lot of instant coffee to work up to some more worthwhile rewards such as some $20 gift vouchers.. which I admit would be pretty good if you can drink enough coffee to collect to points. The points last as long as the use by date on the coffee.

Basically you get a code on each jar of Nescafe coffee. The number of points you get per jar depends on the size of the jar. You can use your points straight away to claim lesser rewards like 10% off online shipping from a bookstore, or save them up to get bigger rewards like $20 gift vouchers.

I’m interested to see how long this Cup of Rewards program lasts for and if any other supermarket brands give this type of marketing a shot. I don’t know how much it will influence brand loyalty in the distant future but during the introductory promotional period it should create some interest and drive sales I imagine.

Note to self: buy 7.6 jars (lets round to 8 ) of 250g coffee at a price of $9 a jar = $72 to get the 1900 points needed for a Coles $20 gift card. But I must drink all $72 worth of coffee before the use by to get my voucher. Here we come yellow teeth and shaking hands.

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