Coalition loyalty programme from BabyMint and NSC
BabyMint and National Scrip Center have joined forces to form a major coalition loyalty programme in the USA, initially involving some three million consumers.
Atlanta-based microinvesting technology company, BabyMint, and Santa Rosa-based National Scrip Center (NSC) - a non-profit organisation that helps other non-profit organisations by providing fundraising products, programmes and services - have formed a partnership combining their merchant networks to form one of America's biggest coalition loyalty and fundraising programmes.
Together, the two programmes will involve nearly three million consumers and a merchant network of more than 1,000 national retailers including Sears, Ace Hardware, Eddie Bauer, and Old Navy.
Programme features Currently, both programmes offer members up to a 20% rebate on every-day purchases made through their respective retailer networks.
For participants in the BabyMint programme, retailer rebates are automatically tracked and deposited in the member's 529 college savings plan, or any other investment account the member chooses.
NSC programme participants can direct their rebates to any of the programme's 10,000 participating local and national charities and schools.
In addition, a percentage of every NSC merchant transaction is donated to NSC's Share The Dream Foundation, which supports education initiatives. According to Financial Research Corporation, these types of merchant and credit card rebates have the potential to represent an incremental US$1.1 billion per year in assets for investment management firms and charitable organisations.
Sharing technology As well as providing members with access to a combined retailer network, BabyMint and NSC will begin sharing portions of their technology infrastructures and working on joint business development activities.
According to NSC's president, David Carrithers, "Our partnership creates significant value both for our members and for the retailers who benefit from the hundreds of millions of dollars in shopping volume and funds raised through our programmes."
BabyMint's CEO, Peter Davis, added, "Combining buying power with the support of education and charities is a powerful concept. By combining our efforts, the two companies can provide an even more compelling loyalty solution to new and existing merchant partners."
Other retailers too? Phillip Rubin, principal of loyalty marketing consultancy Rubin & Co,, feels that the combined power of the two companies' databases will gain the attention of other major retailers who may be interested in the concept of coalition loyalty programmes.
Over the past 14 years NSC has helped more than 9,000 non-profit organisations raise over US$170 million in funding, and has processed over US$2 billion in gift certificates and gift card sales.
BabyMint members can save towards their children's college education when they shop at a nationwide network of more than 700 retailers and 127,000 grocery stores, or consult any of the 22,000+ financial advisors who offer the programme.
The BabyMint proprietary savings engine can also be branded and marketed as a loyalty programme to address various major life expenses, such as saving for retirement, or the down-payment on a home.
Other recent articles about BabyMint's activities: · BabyMint achieves profitability after 18 months (Oct. 17, 2002)· BabyMint to hand out US$10 million in scholarships (Sep. 10, 2002)· BabyMint patents triple-rebate loyalty programme (Jul. 3, 2002)· Saving for college with... a credit card? (May 14, 2002)