Visible Results News - Article

NEW ZEALAND:BLOCKBUSTER ROLLS OUT HEAT-STAMPED CARDS - July 16 2002 - Colloquy

Customers of 24 Blockbuster stores in New Zealand will get a taste of thermo-chromic card technology through a new loyalty program. Auckland-based JSM Entertainment Limited, which franchises Blockbuster stores in New Zealand, has adopted the trademarked "GraphiCard" technology of Kansas City-based Visible Results USA for use in its new Blockbuster Rewards loyalty program. With thermo-chromic technology, users' cards are inserted into a small point-of-sale terminal which heat-stamps the front of the card to display points accrued through the most recent purchase and other personalized data including targeted offers, special promotions and messages. The terminal prints out customized coupons as transactions are completed. The card also includes a re-writeable magnetic stripe that stores specific transaction data as purchases occur. POS information is batch-transferred to a central database. The New Zealand Blockbuster Rewards program features two tiers: Rewards and Privilege Plus. Members earn one point per dollar spent in Blockbuster stores on movie rentals, movie purchases or concession items. Accruing 100 points nets members a "Hollywood Reward" with coupons for in-store rentals; accruing 200 points yields an "Academy Reward" of coupons also redeemable in-store. Upon earning 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 store coupons. The program also includes an "instant win" component featuring prizes from third-party partners, as well as coupons that entitle users to free video rentals, $1 video rentals with the rental of another video at full price, and complimentary concession items. Burger King, which is participating in the program launch, is among third-party partners. To generate interest in the program, Blockbuster will give away over NZ $1 million worth of prizes in the first year, including a year's free video rentals from each of its stores. Heavy television advertising, Sunday newspaper advertisements and direct mail are also being used to publicize the program. The launch of the Blockbuster program marks the fifth rollout of a thermo-chromic-based loyalty card program in New Zealand. Other retailers using the technology include Mobil Oil, Pandoro Panetteria, WISK, HBK Girl and Dymocks Booksellers.