Reward Programs and Coke

It was a genius marketing plan when it was first sprung on the nation of consumers. Loyalty cards, rewards points, and store bonus cards among others. It was the next logical step to the frequent buyer or frequent shopper cards. The best part is that it worked. On the inside it was a marvelous strategy to get more money from the consumer. Raise prices slightly, then give the consumer a perceived deal when buying something with their Loyalty Card for a discounted price (which is actually the regular price that it would have been before all this started). On top of all of this the shopper gets to save points earned from the purchase to redeem on a gift later.

On the outside, to the consumer it was wonderful. Everyone with a Loyalty Card felt special. They felt as if they were important and that they were saving money. Oh and the points! If they save up enough points just imagine the things they could get. Aside from the obvious pricing strategy by the manufacturer of this grand scheme, the stores using this ploy got one more thing that no marketing or money could buy, and is priceless. Return Shoppers!

This is all great, when it works. However.. when it does not work, I mean when it goes sour, then what? What happens when someone drops the ball? What happens when the customer/consumer drops the ball or misunderstands the rules and makes some mistake and gets angry. Who do they get mad at? Of course... the store. In all actuality it doesn't matter who has made the error, the perception will always be that it is the stores fault. This is the inherent danger with such programs. Either way.. it is worth the risk.

Take me for example. For a while there I was a loyal Coca Cola bottle cap points saver. I would save my caps and enter the codes to get my points, 3 at a time. I did this for a while and racked up an impressive 900 and some odd points. Well.. at least it was impressive by my standards. So imagine my surprise when I logged in after not checking it for a while and finding all of my points GONE! At first I thought it was some mistake. It had to be. But no. It was no mistake, the points were gone.

As it turns out if you do not visit the site or enter points for 90 days, your points disappear. What kind of crazy rule is that? Coke needs to take a lesson from the age old and number one rule in retail, the customer is always right. It might not seem to apply in this case, but to me it does. See, I feel that no matter how long it has been since I last signed on and entered a "code" my points should have remained MINE. This is why I say the customer is always right.

I like Coke's product and I drink it quite often. Often enough to save up the caps to enter the codes. Mind you now, this is no easy task sometimes. Codes are hard to see, rubbed off, and if your trying to enter a code of the inside of a 12-pack or 24-pack box good luck. Point is, I put in all the effort and it was my choice to spend that time (that could have been better utilized) entering codes to get points. Points that are now all gone.

So what is the lesson learned in all of this? These loyalty programs are great for all parties involved. That is, if they are managed properly. Companies must remember that along with the loyalty and the returning customers that come along with such programs they too have a responsibility. They must make sure that they take care of those customers and not only lower some of the point values (some of these things are just plain ridiculous) but also allow customers to keep their points. These things are not easy to maintain. Your asking the consumer to do work, and they do. At least allow them the spoils.