Reward points enter search engine war with Yahoo!7-flybuys tie up

Web browsers who search using Yahoo!7 stand to earn flybuys points after the pair brokered a deal to bring rewards to the battle for the search market.

The deal, announced today, will see flybuys offer its members an additional way to earn points while Yahoo!7 attempts to lure members of Coles’ rewards program to its search engine in a bid to increase its volume of premium advertising opportunities.

The system will work via a free downloadable toolbar through which flybuys members will earn half a point each time they search using Yahoo!7. Each users rewards quota will be capped at 100 points per month.

The tie up is a first for the Australian market, but mirrors a similar deal undertaken by the search engine in the UK, which Yahoo! claims has been a success.

Commercial director at Yahoo!7, Damon Scarr says, “We’re pleased to work with the flybuys team to bring this new search approach to Australia for the first time. Our approach to the search market is to look at innovative ways to deliver a great search experience for both consumers and our advertising partners.”

flybuys is already partnered with Coles, NAB, Telstra, AGL and a range of retail and travel groups, where members of the loyalty program typically earn a point per dollar spent.

Woolies mocks Coles with Everyday Rewards ad

Woolworths has hit back in its loyalty war against Coles, with an ad mocking the recent high profile relaunch of Flybuys.

In a TVC that highlights the size of the Flybuys campaign, an animated green ‘peaman’ says, “This is the simplest way we could make this ad. Because extra special savings from Woolworths Everyday Rewards is the simplest way to save on the things you love.”

The ad also takes aim at elements of Flybuys by saying Everday Rewards is simpler than “waiting at the mailbox” and “simpler than counting to five”, in reference to Flybuys’ letterbox drop and My5 initiative.

Created by Droga5, the campaign comes less than four weeks after Coles relaunched Flybuys.

Rewards progams need some mojo

Why are so many loyalty and reward programs just plain dull?

I suspect it‘s because those brands have focussed so hard on what they want to get out of the program that they have forgotten about customers!

I once received an offer from a credit card company that required me to undertake the equivalent of a double pike with a twist. “Use your card this month, spend more than $500 and then you’ll receive double points when you use the card next month”. Confused – why would you even bother?

And it’s worse when you visit some stores. Being incessantly badgered for your FlyBuys or Everyday Rewards card can be a real turn off. Sales staff are clearly being incentivised to ask for the card. How about incentivising them to provide exceptional service? Now that would increase my loyalty.

Humans are social beings, most of us like to interact with others, tell a joke and generally enjoy life. So why do marketers ignore this in their marketing in general and with loyalty efforts in particular?

Personality is a big part of what makes brands live. ANZ ‘s recent ‘Falcon’ anti-fraud campaign managed to cut-through in a sea of boring bank ads. Why won’t they try and inject some personality into their reward programs too?

Social media provides an exciting way to interact and put some fun back into communication. Using Facebook, for instance, can enable your members to share information and generally be social with your brand as the backdrop. And that doesn’t take into account the listening post that such an approach provides your business – real time unfiltered customer feedback.

So how can you reignite that loyalty spark?

  • Show your personality: Does it resonate with your customers? Does it have a fun side? Not sure what it is? If not, uncover it, and make sure you relax a little with your customers. A unique personality and point of view can be a real differentiator – Virgin is an exemplar in that regard.
  • Treat it like a game: Collecting points, earning credits and climbing tiers is just a big game of snakes and ladders. A well-structured program should be rewarding your best customers and incentivising others to spend more. So why not treat it like a game? What do you like most when playing games? Laughter, unexpected twists and, of course, winning! Four Square, is a great example of a loyalty as a game, as, amongst other things, you can be crowned mayor of your favourite venue.
  • Keep it fresh: Loyalty cards long ago crowded out people’s wallets. Most brands, from the biggest department store to the smallest coffee shop, have some form of program. What are you doing to get front of mind and therefore front of wallet? Are your offers relevant and fresh – or is it just another ‘50% off VIP event’?

So basically, what are you doing to have more fun?

Australias top FlyBuys suburb named

Melbourne suburb Berwick has been named Australia’s top FlyBuys suburb.

Residents of Berwick have earned almost 30 million points with the program in the past year alone. According to FlyBuys nearly 8,000 Berwick inhabitants are members of the program and have collected over 4,000 rewards in the past year. Berwick is trailed narrowly by Toowoomba in Qld with 29.7 million points and Castle Hill in NSW with 21.4 million.

FlyBuys is currently celebrating its 15th birthday since its launch in 1994 more than eight million Australians have joined. This makes FlyBuys the fourth largest coalition loyalty shopping program worldwide. The most popular rewards are gift cards, but when choosing merchandise Australians prefer cordless phones, followed by wine and iPods.

Many companies have tried to copy FlyBuys’ success over the years but we remain Australia’s largest coalition loyalty shopping program – and one of the largest in the world,” said Phil Hawkins, FlyBuys general manager. “Every year we are welcoming hundreds of thousands of new members, as Australians look for extra ways to get value from their everyday shopping.”

FlyBuys also claims that:

  • The question “Have you got FlyBuys?” has been asked 12 billion times across Australia since its inception,
  • 40,000 points are issued every minute, and
  • 1.5 million redemptions are made annually.

FlyBuys moves into entertainment

FlyBuys has expanded its customer reward program into the entertainment world.

Partnering with Showbiz International, a specialty ticketing and packaging provider, the company is launching FlyBuys Box Office, which will allow members to collect FlyBuys for tickets purchased through its site.

“We’re very excited to offer our members the chance to see some of the best musicals, concerts and major events in the country while also boosting their points,” said Phil Hawkins, general manager of FlyBuys.

“Under the partnership our members will also have access to VIP pre-sales tickets before events go on sale to the general public, so they can always get tickets to the shows and events of their choice.”