Australian DIY loyalty coalition roll-out - the full details
In Australia, the Home Ideas Centre continues the roll-out of its DIY sector coalition loyalty programme, 'ADVANTAGEcard', which rewards consumers for home improvement purchases and other online shopping. The Wise Marketer brings you full details of how the programme works.
As the campaign slogan goes, "Investing in your home can now be an even more rewarding experience, thanks to the Home Ideas ADVANTAGEcard". Originally launched in Tasmania on February 18th 2005, the programme brings together a variety of companies and service providers throughout Tasmania and Australia's Northern Territory to support the industry-wide coalition loyalty card. The programme targets both domestic home improvers and professional tradesmen alike. Cardholder reward points are accumulated from supplier incentives as well as from points offered by participating businesses. Cardholders can see what points have been earned either having their membership card scanned at the point of sale at participating outlets or by checking their points balance online. These accumulated points can then be redeemed to purchase goods and services from any of the programme's retail partners.
Members can redeem points on everyday items or save up their points for larger purchases. According to Home Ideas, ADVANTAGEcard points are earned in addition to credit card reward points, and do not expire as long as the consumer remains a member of the programme.
Enrolling Interestingly, membership of the programme is not free of charge. Consumers pay for their membership annually, either using the points they earn (the first 2,000 points each year) or by opting to pay an annual fee of Aus$20 instead. To receive their Home Ideas ADVANTAGEcard and welcome pack, consumers simply need to complete an application form (either printed online, or picked up from any retail partner's store).
Earning points ADVANTAGEcard reward points are earned every time a member makes a purchase at a participating business or online through the Home Ideas web site. As their reward points accumulate, they can redeem them on bonus purchases or spend them on exclusive ADVANTAGEcard offers.
Points can be earned wherever consumers see the ADVANTAGEcard logo displays in a participating store. One notable restriction on points earning is that Gunns stores requires a minimum spend of Aus$50 including sales tax (approx. US$37) before points can be earned on any transaction.
Participating businesses also run offers so that members can earn extra 'bonus' points for higher-value purchases. Some examples of reward point bonuses currently available include:
- Soundsmart: Earn 70,000 points on a Home Cinema Projection system at a package price of Aus$9,990;
- Innerspace wardrobes, Launceston: Receive 7,500 points for spending Aus$2,000 or more;
- Quantum 250 litre heat pump hot water system: Earn 20,000 points for spending Aus$2,800;
- Solartech 300 litre roof mounted hot water system: Earn 14250 points for spending Aus$2,450;
- Home Theatre, Launceston: Receive 50,000 points on a 42 inch plasma screen TV or 25,000 points when you purchase a Harmon Kardon HKTS11 for Aus$2,499;
- Carpet Choice: Earn 10 points per dollar on Godfrey Hirst Groovy Shag carpets;
- Gunns Betta Electrical: Earn 10,000 bonus points on any Whirlpool cooking package, or earn 8,000 bonus points on any Electrolux cooking package;
- Gunns Mitre 10: Receive 1,000 bonus points on Tasmanian Oak Hardwood Flooring, treated Fineline Pine and Tasmanian Oak Mouldings and Linings worth Aus$500 or more;
- Caroma: Earn 10,000 bonus points on a Caroma, Dorf and Stylus bathroom package of Aus$4,000 or more.
ADVANTAGEcard partners Each retail partner both issues and redeems ADVANTAGEcard points. There are approximately 200 participating retail partners in Tasmania and the Northern Territory, each awarding anything from 1 to 10 points for each dollar spent. The latest list of partners for both Tasmania and the Northern Territory can be found on the programme's web site (at http://www.homeideasadvantagecard.com.au/outlets.asp).
E-shopping bonuses Members can also earn ADVANTAGEcard points by shopping online for goods and services other than home improvements, through the many online retailers in the programme's e-shopping partner network. Home Ideas points out that points can only be earned this way if consumers follow the web links directly from the programme's web site (rather than by just visiting the online partners' sites directly) but this is mainly due to the way online affiliate sales tracking works. Online merchants offering ADVANTAGEcard points currently include:
- 1800floral.com.au (flowers; 3 points per dollar)
- Basket Basket (hampers; 4 points per dollar
- Brazilclothing.com (3 points per dollar)
- Break Of Day (hampers; 3 points per dollar)
- Click Business Cards (5 points per dollar)
- Complete Basket Case (gifts; 3 points per dollar)
- Definitely Chocolate (3 points per dollar)
- Donna Marie (gifts; 2 points per dollar)
- EasyFlowers (4 points per dollar)
- Enchanted Pewter (jewellery; 3 points per dollar)
- eSunnies (sunglasses; 3 points per dollar)
- Fantasy Lingerie (9 points per dollar)
- Freeman X Experience (3 points per dollar)
- Gillett's Jewellers (1 point per dollar)
- Go Go Gear (travel goods; 2 points per dollar)
- Heavenly (hampers; 3 points per dollar)
- Imagen (ink cartridges; 5 points per dollar)
- Intrigue Design (gifts; 4 points per dollar)
- Job Pond (job seeking; 5 points per dollar)
- LatestBuy (gifts; 3 points per dollar)
- Lingerie.com.au (5 points per dollar)
- Magazine World (2 points per dollar)
- Perfume Connection (3 points per dollar)
- PropertyValue (7 points per dollar)
- RedBalloon Days (1 point per dollar)
- Roses Only (3 points per dollar)
- Seek Books (3 points per dollar)
- Techoni Mobile Phones (1 point per dollar)
- Teleflora (flowers; 5 points per dollar)
- Tesora Gifts (3 points per dollar)
Redeeming points The reward points that members earn may be redeemed at any of the participating retail partners. To earn points, the member produces their ADVANTAGEcard at the point of sale. Likewise, to redeem points toward a purchase, they simply produce their card and tell the checkout clerk what value they wish to redeem. The clerk will then obtain approval (instantly in many cases, where the store's communication infrastructure allows for online processing in real time), and the points are redeemed immediately. From this point of view, ADVANTAGEcard Points are as good as cash, as there is no need to convert points into vouchers before redemption. There's only one limitation on redemptions: the minimum redemption dollar amount is Aus$10 in any single transaction.
As an extra little bonus for ADVANTAGEcard programme members, Home Ideas promises to cover the cost of application fees when members take out loans with its financial services arm, Home Ideas Financial Solutions (HIFS). This benefit does not consume any points.
Taking holidays Points can also be redeemed for holidays at Travelscene American Express offices throughout Tasmania, and travel can be paid for in any combination of points and cash.
On a regular basis Home Ideas also runs special sweepstakes for ADVANTAGEcard members, with an entry into the draw being added for each purchase at participating retail outlets. One recent sweepstake (concluded at the end of June 2005) had for its star prize a holiday for two to Fiji including return flights and Aus$1,000 spending money.