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Wednesday, December 15, 2010

To Pay Or Not To Pay…Sense or Dollars….

A National Chain has decided to take the first steps in eliminating their free rewards program. At checkout a staff member would ask for you Rewards card or email address. They decided to switch to a program in which you have to pay $20.00 to join the basic plan which to gain anything from this plan as it stands, you the customer would have to spend $200.00 a year in the store to get back your original $20.00,so to include that your break even point is really $220.00 before you get nothing. If it were a hotel chain, your sign up would be free and your points accumulate and accrue. If you get points in their plan which equates to roughly $5.00 you have 30 day to use them, with no rollover or accrual.



The one part which makes no sense is that the employee’s were sent a letter telling them to support the program, or that they would be written up in disciplinary form, getting hit with a stick does not make the donkey move faster. The customer base they have to work with at the store in particular is Latino from Mexico, and the email required to start the process doesn’t allow them to accept Mexico emails or their base is elderly and don’t have emails or computers. It is funny how none of this is taken into consideration during the design or implementation of the new system.


It won’t work for any of the reasons I mentioned who wants to Pay to Play, and support by a staff who has their hands tied to make it work, who is threatened with disciplinary action. Some companies need to do more to get more.

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