Blockbuster NZ adopts GraphiCard loyalty programme
New Zealand's Blockbuster video licence holder, JSM Entertainment, has adopted Visible Results' new GraphiCard technology and CRM system for use in its new Blockbuster Rewards loyalty programme throughout all 24 of its New Zealand stores.
JSM launched the programme in mid-June 2002 in all 24 New Zealand Blockbuster video stores for which it holds licensing rights. The programme replaces customers' existing Blockbuster membership cards while allowing them to retain their existing membership numbers and rental histories.
GraphiCard technology The introduction of this new programme marks the fifth rollout of a GraphiCard-based loyalty programme in New Zealand. Other retailers with such programmes in place include Mobil Oil, Pandoro Panetteria, WISK, HBK Girl and Dymocks Booksellers (which also uses the GraphiCard throughout its retail network in Australia and Hong Kong). The card has also been rolled out in the USA (see previous news stories: Jan 9th 2002, and Aug 3rd, 2001).
How does it work? The member's card is inserted into a small point-of-sale terminal during each sales transaction. A thermo-chromic process changes the front of the card to display points accrued through the most recent purchase, along with other personalised data designed to pique the consumer's interest. Such data - which is customised for each Visible Results client - includes highly targeted offers, details of special promotions and sales, advertising messages, and details of instant-win games. The terminal also prints out customised coupons and similar incentives as transactions are completed. The card's magnetic stripe stores specific data about transactions as they occur.
The technology is supported by a customer relationship management (CRM) infrastructure. Point-of-sale information collected during transactions involving programme members is downloaded to Visible Results' international data centre which maintains customer databases and issues customised reports specifically for each client. This approach saves clients having to employ large IT teams and departments, and the data centre can target marketing offers to individual customers.
Rewards programme Blockbuster Rewards has two tiers: Rewards and Privilege Plus. Members earn one point per dollar spent, whether on movie rentals, movie purchases or concession items. For 100 points, members can have a 'Hollywood Reward' containing Blockbuster coupons for in-store rentals. For 200 points, members can have an 'Academy Reward' of coupons also redeemable in-store. For 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 in-store coupons.
Programme partners The programme also includes an instant win component which features prizes from third-party partners (such as Burger King), as well as coupons that entitle users to perks such as free video rentals, a NZ$1 video rental with the rental of another video at full price, and complimentary concession items.
To generate interest in the new programme, the firm will give away over NZ$1,000,000 worth of prizes in its 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 publicise the programme.