Blockbuster launches points based loyalty programme

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By: Wise Marketer Staff |

Posted on November 29, 2001

Blockbuster launches points based loyalty programme

Blockbuster, with a database of some 42 million active members in the US alone, is launching a points-based loyalty programme.

Video, DVD and game rental specialist, Blockbuster, has launched a no-fee points-based loyalty programme called Freebie Points in more than 4,300 corporate stores. (Blockbuster has nearly 7,900 stores throughout the Americas, Europe, Asia and Australia). The programme was created by and is administered by CRM solution provider, Freebie, Inc.

Earlier this year Blockbuster rolled out the Freebie Smart Offer system, which allows businesses to offer customers customised promotions at the point of sale. The actual incentive offered, the amount and the compliance time period can be varied on past and current purchases, as well as response to past offers. Freebie Points is an extension of this programme.

Sweepstakes Freebie Points awards members points (which appear on their receipts) that they can use towards payment for movie rentals and other merchandise from Blockbuster stores and other Freebie retailers. Members are also entered into a sweepstake every time they rent a movie or game. In April 2002, one customer will win a hundred million points. Between now and then, one customer will win five million points each month, and 65,000 customers will win 500 points each. Customers can also participate in a scheme which donates money to charity.

To expand CRM Blockbuster's database contains 42 million active members in the US alone. "Essentially, we're offering our retailers a variety of ways to incentivise the consumer behaviour they want," said Frank Byrley, Freebie CEO.  "Freebie Points speaks to those consumers who are savers.  Not all customers fit this profile.  Some may be game players that prefer to win quickly rather than save slowly, while others may make cause-driven buying decisions.  Whatever it takes to motivate a particular customer, we'll try to offer it."

According to Jim Notarnicola, executive vice president and chief marketing officer at Blockbuster, "Personalized, one-to-one customer interactions are the foundation of true customer relationship management. Blockbuster is committed to expanding its capabilities in this arena."

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