CoolSavings has launched FreeStyle Rewards, a consumer rewards programme, in addition to its existing lead generation, coupon and e-mail services. Members earn points that are then transferred to a gift card.
FreeStyle Rewards members can now buy goods from some 175 participating merchants' web sites, and collect points at merchant-defined rates - up to twenty points per US$1 spent. These points are then redeemed for a disposable FreeStyle Rewards Gift Card: a Debit MasterCard that can be spent like cash at millions of locations across the country and online.
Until June 2005, each new FreeStyle Rewards member will receive an introductory bonus of 100 points on the first qualifying purchase of US$25.00 or more. In a test, CoolSavings randomly chose ten participating online merchants and calculated the reward earned by a consumer spending US$1000; the dollar value was $54.60.
Consumers want cash
Consumer demand for cash rewards - and flexibility in redeeming them - were the two driving forces in the design of FreeStyle Rewards. In a study of more than 21,000 consumers, CoolSavings found that 67% prefer to receive their rewards as cash instead of merchandise and 57% also want the flexibility of receiving those cash rewards in the form of a debit card they can spend virtually anywhere.
Consumers also want maximum flexibility when redeeming their points, with 57% selecting a debit card as the "best way to redeem rewards that have been accumulated." This compares with 28% who prefer a gift certificate, and another 15% who indicated they prefer a voucher for free groceries.
Promoted to millions
The programme will be promoted to millions of active CoolSavings members, as well as through numerous other marketing channels across the Internet. Merchants simply join through their affiliate network providers with no technology requirements involved.
FreeStyle Rewards is the first new consumer brand from CoolSavings Inc. since the Company launched coolsavings.com, in 1997. Participating FreeStyle Rewards merchants include Target, Sears, Kohl's, Office Depot, Avon, Lillian Vernon, Cooking.com, Cabela's, Wilsons Leather, Lenox, Eddie Bauer and CompUSA. According to CoolSavings, the list of participating merchants is growing each week and will expand by more than 100% in the next 45 days.
CoolSavings' marketing network reaches more than 35 million consumers. In 2005, the company will serve more than 1 billion offer impressions across its distribution network, generating more than 100 million responses for its advertisers.