August 2008 Archives

Microsoft announced this morning that it has entered into an agreement to purchase Greenfield Online for $486 million. They're planning to have the purchase finalized by the end of 2008.

Greenfield Online has two major components, according to ZDNet: there's the Greenfield online survey part, which many of us in the rewards program arena are familiar with, and then there's Ciao, which consists of Ciao Surveys and also the Ciao.com search and review portal based in Europe. According to Microsoft's statement, they're not interested in the survey business and have in fact already lined up a buyer for that part.

What Microsoft wants is Ciao's search and review portal, and to get it integrated into Microsoft Live Search.

Ciao's corporate site explains in more detail exactly what it is they do:

"Ciao, a subsidiary of Greenfield Online, Inc., is one of the leading European providers of comparison shopping and consumer portals. It provides consumers in seven countries and languages with detailed information and comparison pricing for over 4 million products. More than 5 million product reviews are currently available online. Since September 2006, we are offering reviews in video format.

The portal also includes direct shopping links to individual online merchants – because Ciao is where purchase decisions are made!"

That last part sounds like something that would make Ciao easy to integrate into Live Search Cashback. And of course, MS will be happy to extend its reach overseas as well. So, you can see where this would be an attractive company (or portion of a company) for Microsoft to buy. According to John Mangelaars, vice president, Consumer and Online, Microsoft Europe, Middle East and Africa, "This makes the company a fantastic asset to the future of our search offer. Integrating Ciao's capabilities into Live Search will provide a strong launchpad for our commercial search offer in Europe and enhance our e-commerce offering on MSN."

For those of us who are members of Greenfield Online and/or Ciao Surveys, the impact of this is unclear. Any changes would probably not be immediate since the purchase won't be finalized for several months.

Through 9/1, members of the Best Buy RewardZone rewards program can use this printable coupon for 12% off the regular price of a single item in certain categories (see the coupon for all of the details).

On Wednesday, I got an email from someone whose name I didn't recognize, asking me to join JackpotRewards.com with his link so we'd both get $10. It was clearly a form letter, and from someone unfamiliar with me or my site, because I had reviewed Jackpot Rewards way back in February, and had posted about it several times since then. I replied to the mail with a link to my review and said thanks, but I beat you to it. What what was strange was that his email address was listed as "do-not-reply@jackpotrewards.com", but when I hit reply, the sender's address changed to a gmail account.

Yesterday, the sender emailed me back, with the same email but just changing the subject of the email to say, "I'm Sorry! I'm trying to win a company email competition so I'm spamming everyone I know!"

First of all, I DON'T know this person. Second of all, "a company email competition"? Did he mean Jackpot Rewards was having some kind of email competition? I was confused. So I Facebook search for "Jackpot Rewards" and sure enough, there is this guy's name, with Jackpot Rewards listed as his employer.

So...yes, it appears that Jackpot Rewards is offering incentives to its employees to spam, in an effort to bring in new paying members to the program.

Jackpot offers a $10 referral bonus for members who sign up friends who stay on at least one billing cycle as paid members. Yesterday, Jackpot signed up with the LinkShare affiliate network, offering webmasters $30 for each new paying member they could bring in to Jackpot. And on top of this, they're having a contest to encourage their own employees to bring in new people, one that has them (in their own words) spamming?

This reeks of desperation.

If you're not familiar with Jackpot Rewards, the site launched in February to much fanfare, offering a guaranteed one million dollar jackpot winner once a week in addition to a progressive jackpot. You could get a free trial membership, and afterwards it cost 3 bucks a week. They also had a cash back shopping program that returned 100% of their commissions from online purchases to their members in the form of cash back.

JR announced their first $1M winner in March, but a month later, they eliminated the guaranteed $1M draw. At that point, I expressed serious doubts about the future of Jackpot Rewards. And here we are, 5 months later, and the site is still clearly scrambling to get members, and now using some questionable tactics to do so.

I won't go so far as to recommend that you avoid Jackpot Rewards; but be aware that there are some issues going on behind the scenes and proceed with caution.

The LuckySearch search and win site just launched a new shopping section as an additional way for their members to earn points redeemable for gift certificates and merchandise!

I haven't had a chance to do a full analysis yet but I can tell you that most merchants award between 3 and 7 points per dollar spent. Based on the value of their cheapest $25 redemption (2500 points, for an Amazon GC), one point = one cent... so 1 point per dollar is 1%, 3 points per dollar = 3%, etc.

Just checking out a few merchants for comparison's sake:
Eddie Bauer at 4 points per dollar (4%) is equal to the rates at Ebates and FatWallet; in other words, very competitive.
FTD at 6 points per dollar (6%) is about average (Ebates and FatWallet offer 10%).
NetMagazines at 22 points per dollar (22%) is the highest of the programs I checked (next closest was 15%).

The site also offers 15 points when one of your referrals makes a purchase.

LuckySearch's owner emailed to tell me that they had a lot more merchants coming soon and that we'd see some other enhancements to the site soon that have been in the works for a long time.

Soooo... just giving it a quick once-over, I like the LuckySearch shopping section. Their shopping rates are reasonable to high, and the site is easy to navigate. I think the site has a lot of potential.

If you're not a member of LuckySearch already, you can read my review of it here, or go ahead and sign up with my link here (thanks)!

Four years ago I reported that JCPenney was considering establishing a rewards program, and FINALLY, they announced via a sales circular last week the introduction of JCP Rewards.

The program (a work in progress, according to a spokesman) allows shoppers to register up to 3 of their debit or credit cards -- they don't have to be JCP-issued cards -- and members will receive 1 point per dollar when these cards are used for regular or sale priced purchases in-store, online, or by catalog. (Clearance purchases are excluded.) Members who shopped at JCPenney the previous month will get double points. By signing up, program members will also receive special offers and coupons by email.

250 points = a $10 JCPenney promotional certificate (there's a max of 1 per month), which equals a 4% rebate (or an 8% rebate if the points were doubled because you shopped there the previous month -- also note that they're doubling points through 12/31/08 if you join now). These certificates can be combined with other offers. You should be able to combine this with the cash back you can earn by shopping through one of the rewards programs (Ebates offers 4% cashback, or get 3% at MrRebates or Upromise), as long as you use one of those three registered cards to pay for the order.

JCP Chief Marketing Officer Mike Boylson said, "We know that a significant number of consumers are shopping in our merchandise categories each month. We also know that our customers spend an average of $30 to $40 each time they shop with us. With JCP Rewards, we are able to reward customers for regularly shopping at JCPenney, while building long term customer loyalty."

This morning, it was reported that JCP's profit for the second quarter of the year fell 36%. They attributed this to consumers cutting back on discretionary spending and fewer mall trips. In my opinion, blaming lower profits on "fewer mall trips" means that JCPenney customers aren't loyal enough to the company to shop through their website or catalog. JCP needs this loyalty program to bring those shoppers back into the fold. I noticed that JCPenney.com is doing a promotion for free shipping on $49 orders. That's obviously another route to entice business from the shoppers who are avoiding the mall.

I think that this program is a huge step in the right direction for JCPenney. Back in March, I made a post specifically about JCPenney and my disappointment that they had no rewards program for customers who weren't credit card holders. I think that the doubling of points for members who shopped the prior month is a big enticement for repeat business. I am disappointed that the potential rewards are capped at $10 a month, though, and I'm also concerned about how (if at all) this program will affect their cardholder benefits -- I like the JCPenney Privilege program for cardholders (especially the free GCs they send on your birthday and I think right before Mother's Day). So, while there's some room for improvement, I'm very happy that they're at least trying something...even though it took four years to get it off the ground!

Sources: Colloquy.com, Dallas Morning News, MarketWatch.com

Update, 9/22: BoomerTowne.com is down for good. Read the email from site founder Herschel Peddicord here.

Update 8/20: Again this week, no mention of points in Boomertowne's newsletter.

A sign of what's to come? I would certainly think so.

Two weeks ago, I posted about the growing backlog of GCs at Boomertowne. Nothing appears to have changed since then -- my 5/9 redemption is still listed as "pending" despite the fact the site says that "BoomerTowne Points orders may take 6-8 weeks for delivery based on availability." It has now been a month and a half since BTVoice, the site's owner, has posted on the site.

I noticed something quite conspicuously absent from yesterday's Boomertowne Community News email: any mention of "points."

Going back a few emails, all of the BT Community News mails I saved had at least some mention of points:

8/5: "...submit your video to the BoomerVision Videos Contest, and you may just win some bonus BoomerTowne Points."

7/29: "...starting August 1st, submit your photos and videos for the August contests. Your entry may just earn you some bonus BoomerTowne Points."
"...To be eligible for the Gold/Platinum Citizen drawing, all you need to do is earn BoomerTowne Points."
"Learn more about becoming a Gold/Platinum Citizen | Login and start earning points."

7/8: "If your video is voted as one of the top three winning videos for July, you’ll earn bonus BT points."

I didn't save any newsletters between 7/8 and 5/27, but points discussion was all throughout the 5/27 newsletter (that's when they announced that new members after 6/1 would have to pay double the points for redemptions).

Out of curiosity, I logged out of BT then visited its home page to see how it would look to non-members. There's no mention of points there, either (except for the menu option to go to BT Points).

You don't have to be a genius to see what's coming. The only question is how BoomerTowne will go about phasing out their points and to what extent they will honor redemptions in progress. I don't know if BTVoice or his employees visit here, but if they do, I'd like to give them some advice:

Don't pull a NetWinner.

What you'll lose in money and in "fair-weather friends" type members, you'll regain exponentially in loyalty and respect from those who feel you communicated honestly and treated them fairly. If I can help or advise further, email me. I'll even waive my consulting fees. Your decisions will impact a lot of people and I'd be happy to help however I can.

BestBuy.com (aff) now offers an online mall for its RewardZone members, to give them another way to earn points to their account. Located here (you may need to be logged into your RewardZone account to access the page), it offers over 500 merchants and generally pays 1 to 3 points per dollar for each purchase.

To introduce RZ members to the service, Best Buy is offering 250 points (worth a $5 Best Buy GC) to each member who makes their first $50 purchase through their online mall by August 30th.

For comparison's sake: 1 point per dollar = 2%; 2 points per dollar = 4%; 3 points per dollar = 6%.

In looking at the merchants and the rates offered by the RZ Online Mall, nothing jumped out at me as being a particularly good deal compared to what other rewards programs offer you for shopping...and most of them offer more than one option (Best Buy GCs) for cashing out. So I give this online mall a big "Ho-hum."

RewardZone is free to join. You can sign up in-store, or at MyRewardZone.com.

I like to shop...a lot. (Too much, my husband would say, but he's a stingy curmudgeon and, well, I guess it's true that opposites attract.) Anyway, my point: I'm excited to announce that my services have been retained by QuickRewards.net to create and develop a new shopping blog for their rewards program.

The blog will feature deals, coupons, members-only contests, and some other things about which I've been sworn to secrecy...but you can see it in action, in its embryonic form, here: http://shopblog.quickrewards.net, or if it's easier to remember, it's also located at http://www.qrdeals.com.

In discussing this with friends and family, the question was posed, "Does it create an ethical conflict of interest to contract your services out to one rewards program while you blog about the industry?" My response is that it happens all the time. That's what consulting companies do. QR is placing incredible faith in me by agreeing to be my first client. They're giving me access to all of their internal processes, sales figures, etc., on the basis of my reputation as someone of integrity who will keep this information absolutely confidential.

Further, this situation is unique only to the extent that I'm being compensated. I have consulted with MANY rewards programs over the years for free, something that my friends and family have long questioned. "Why spend an hour of your time to analyze a new rewards program then compose a long email to the owners full of suggestions for improvement? They're getting valuable insight from a veteran industry analyst and user for free, lining their pockets while you ...well, aren't?" The answer was simple: I had and continue to have a passion for the concept of online shopping rewards programs.

So, how will this affect CompareRewards.com, you're asking yourself. I want to be perfectly clear with everyone that I am now in a working relationship with QuickRewards.net. This will not impact my reporting of the latest news, but it may create somewhat of a bias toward them in my commentary. You, my readers, should take that into account. I always try to provide facts, then I trail off into my opinion of the events. While everyone would like to think of themselves as unbiased, nobody really is. I've always been a fan of QuickRewards, and I'm sure that's been obvious in my posts. I've also been a fan (and remain a fan) of other sites like Ebates. I'm getting more keen on MrRebates, and less on Microsoft Live Search. I try to explain in my posts why I feel one way or another, and I'll continue to do that. Given the facts, you can make your own decisions about which rewards programs to use or to avoid. You're intelligent folks.

QR is not requiring me to sign any kind of agreement prohibiting me from discussing and even promoting other rewards programs. They have THAT kind of confidence in the service they offer. They know that other, bigger sites can do some things better...but that sometimes there are also advantages to being the little guy. There used to be a car dealership here in town that ran an ad that said something like, "We're not number one...that's why we try harder." QuickRewards is just like that.

I'm open to other part-time consulting work if you have a specific project in mind; just send me an email.

The annual shopping comparison chart WILL be released again this year, my fifth year to do it, in October. Get your requests in now for consideration for inclusion if you're a rewards program; if you're a shopper and your favorite store wasn't in the chart last year, please let me know and I'll add it this year. I think the .pdf format was pretty well-received last year and I'll try to do it again this year.

If you have any questions or concerns, please send me an email and I'd be happy to discuss them with you. I appreciate your taking the time to read this, and I thank you for your continued support of CompareRewards! If you get a chance, please check out the QuickRewards.net Shopping Blog!

I joined a program called LoyaltyMatch some months ago after reading a press release about their new service. A competitor to Points.com, LoyaltyMatch allows members to swap points or to exchange points for rewards or cash. It's kind of difficult to explain -- take the site tour here.

Anyway, for the entire month of August, the site is waiving its usual fees for transactions on the site. More info on this is here.

I haven't used the site yet but plan to delve into it deeper this month while it's fee-free. Please post a comment if you have used LoyaltyMatch and let us know how you liked it!

I thought this was a neat idea, if you have an iPhone -- a blogger who, like me, had a wallet full of loyalty cards from various rewards programs, decided to declutter by scanning in his cards to an iPhoto album, which is synched up to his iPhone via iTunes. I don't have an iPhone, but I understand what he did and think it's pretty cool. He said he had no problem using it at the one place he tried (the bar code scanned fine and everything). If anyone else has tried it, I'd love to hear about specific retailers allowing/not allowing this.

I think the loyalty cards hanging off my keychain weigh more than the keys themselves. :(