Visible Results News - Article

BLOCKBUSTER PREVIEWS NEW LOYALTY PROGRAM - July 2002 - Top of the Net

Ask not what your customer can do for you, but what you can do for your customer. This should be the sentiment lingering on every retailer's lips. With the marketplace growing more competitive every day, merchants must find new ways to show patrons their appreciation. While loyalty cards may not be new or cutting-edge technology, they do represent what has come to be a standard in the retailing world and a proven way to ensure repeat business. However, as retailers look to expand globally, just having the cards in place is not enough, as one Blockbuster licensee recently realized. New Zealand-based JSM Entertainment Limited has adopted the GraphiCard loyalty card technology and CRM system from The Visible Results Group of Companies for use in its new Blockbuster Rewards loyalty program. JSM launched the program in mid-June in all 24 New Zealand Blockbuster video stores for which it holds licensing rights. The program replaces existing Blockbuster membership cards, but allows customers to retain existing membership numbers and rental histories. Through the Blockbuster Rewards program and Blockbuster Privilege Plus, members earn one point per dollar spent in stores, whether on movie rentals, movie purchases, or concession items. Once consumer have accumulated 100 points, they receive a 'Hollywood Reward' containing Blockbuster coupons for in-store rentals. Accruing 200 points yields an 'Academy Reward' of coupons, also redeemable in-store. With 300 points, members receive an upgrade to 'Privilege Plus' status, as well as a prize pack with free new video releases, coupons for revoking extended viewing fees, and other Blockbuster coupons. The program also includes an 'instant win' component, featuring prizes from third-party partners. The technology is supported by a sophisticated CRM infrastructure. Point-of-sale information collected during transactions with program members is downloaded to the Visible Results International DataCenter, which maintains customer databases and issues customized reports specifically for each client. Thus, clients need not employ large IT staffs in their own back offices and can efficiently target marketing offers to individual customers.