discount cards

[Lewisb87]

Hello again

Another idea I've had is for a loyalty card scheme. I actually came up with this one last June/July.

It was for a multi business discount card scheme where customers could save at multiple Businesses.

Such schemes do exist but mine would be different.

1.Free for Businesses to join, no commission fees etc
2.Businesses receive a share of the profits generated by Memberships, online content and ads(?).

The fact that Businesses would receive a share of the profits would mean that more Businesses would sign up and offer better discounts.

I can't seem to make up my mind whether it's a good idea of not. I think that there is a place for a scheme that is more beneficial to customers and Businesses.

Unlike Nectar for example customers would receive instant savings, not points that would build up.

I've do a bit of work on this but haven't got very far with it.

Is it a good idea or not?

Lewis

[ryanlund]

Hey there,

I like this idea quite a lot and i for one would be willing to sign up as a business =)

Ryan

[Lewisb87]

Hi

Thanks for the encouraging reply. If only my parents were were more encouraging of me doing this.
They are the only people who I can actual talk to about this (other than online) and they just don't seem to grasp the concept.

The fact is that Businesses like to make money, customers like to save money so this kind of bridges the gap between the two. It allows customers to save money whilst maximising the profits that Businesses make.

I read somewhere that Tesco spends £150 million per year on it's clubcard. Not sure whether that's just admin fees etc or whether it's the amount of money members save with it but even so such schemes do cost vast amounts to setup.

Lewis

[Lewisb87]

also with such schemes purchases are monitored etc for marketing purposes.

[ardeer]

hi lewis

I might be able to help you in some ways regarding this idea. I have a few things going at the moment that involves loyalty schemes so i have a good understanding of whats required.

Just wondering if you would like to email me at general@ardeerdesign.co.uk and we can have a chat?

Thanks

[ryanlund]

Well i dont have any knowledge of things like this, but if you do need a hand with anything go to my site (www.ryanlund.co.uk) and get in touch =)

Btw how old are you??

Ryan

[Lewisb87]

hi

Thanks for the reply. The thing I am struggling with is the website. I can't seem to create a decent looking site.

Lewis

[Lewisb87]

BTW I am 22 years old

[Jarvooo]

Originally Posted by Lewisb87

hi

Thanks for the reply. The thing I am struggling with is the website. I can't seem to create a decent looking site.

Lewis

If its a website your after - drop me an email mate quite often i can adjust to peoples budgets, let me know what your after etc, also id be very happy to hear more of your project too :P

[ryanlund]

Well i have a designer at hand (damion @ degrafik) and im a web developer, so if you need a site i can sort it out for you.

If you 22 yr old how come your so worried about what your parents are saying about your ideas?

Ryan

[Lewisb87]

Hi, thanks for all the replies.

I seem to keep going off this idea and coming back to it. I'm still not sure whether it would work. People are 'put off' by the whole idea of loyalty schemes although I feel I could do something differently.

I'm trying to think of how I could make money from it. Originally it was going to be based around the sale of the plastic membership cards but this is a little outdated I think so I thought of mobile phone wallpapers and things but the trouble is in protecting the images so they can't be sent to other phones.

The idea I now have is with USB memory sticks with the company logo printed on them. They are becoming more and more popular and not only would Members have something to use, they would also be able to save money. Where would I get them from cheap enough

And my problems don't stop there. The website is driving me mad although I can't really afford a web designer at the moment.

So I'm pretty stuck at the moment.

Lewis

[bill mccallum]

question is where does the cashflow come from?

if businesses get a share and customers get discount, how will you generate income?

[bryanfuller]

This is really a nice Idea.

[m8internet]

There used to be a similar such card many years ago
The annual fee was £25 and I was able to make savings such as to make that back within 1 month

However it was Direct Debit and I stopped using it, cancelled the Direct Debit, but the company kept attempting to take the money
"You have entered into an annual agreement, last years payment is now due"
Even trading standards thought they were having a laugh!

The main problem would be getting companies to sign up and to administer the scheme
Online authorisation method will probably be required, so either DIONE or PayPoint will be required

[Swish]

My primary job currently is in the cards industry (17 years) and I can tell you that this is a massive task - not to put you off. But setting a realistic expectation. Primary considerations are:
- cost of card production
- card personalisation
- card usage fee's and calculation
- what are the management information requirements for all the stakeholders and how will you share it
- fraud, how do you prevent it
- disputed card usage (exception handling)
- how do you switch the transactions to the stakeholders so that they have an element of control as to whether to allow the card to be used or not.
- Regulatory issues, i.e. SEPA, FSA, etc - can change per country market, and there may be different domestic standards to consider also.

Best bet is to see if you can partner someone already doing such products/services. Even then, the cards business is a scale business and without scale the costs are very high.