Barclaycard readies instant rewards scheme
Share
Barclaycard is to launch a loyalty scheme that allows its customers to redeem rewards accrued straight away in thousands of stores nationwide.
The retail rewards scheme, dubbed “Barclaycard Freedom”, will launch in March and will be available to the credit card firm’s cardholders to use in small and medium sized retailers as well as major chains
It allows customers to redeem points at point of sale using their credit card rather than by using vouchers, or a different card.
Customers will earn “reward money”, about 1% of the transaction, when they use their card at participating retailers, 30,000 of which have been invited to participate.
Consumers will see their balance on the card machine after a transaction takes place. Next time they use their card in a participating retailer they will see the value of their reward money balance appear on the card machine before they enter their PIN to pay. They can then choose to redeem some or all of their reward money towards that transaction or later.
The credit card firm claims the rewards scheme is the UK’s “broadest”, adding there will be 200 retailers within five miles of where a cardholder lives.
It will support the launch with television, online and print activity.
Barclaycard recently launched a marketing recruitment drive to support the launch of the new scheme.
Readers' comments (3)
Alexandra | Mon, 25 Jan 2010 12:31 pm
interesting....
Unsuitable or offensive? Report this comment
Stuart Evans, ICLP | Wed, 27 Jan 2010 12:13 pm
1% cashback isn't differential as a rewards only proposition. Barclaycard are apparently also counting on the retailers to provide additonal reward funding but they will only do that if they see incremental footfall and/ or valuable customer data back i.e. the benefits of a true loyalty programme - not sure if Barclaycard have closed that loop to create the groundbreaking product they expect - sure it will have take up but at what cost / ROI?
Unsuitable or offensive? Report this comment
Andrew Mitchell of Arvato Loyalty Services | Thu, 28 Jan 2010 4:34 pm
This is an interesting move by Barclaycard at a time of keen competition in the loyalty market. On the face of it, Barclaycard Freedom offers existing cardholders an easy-to-understand, easy-to use reward proposition with immediate added value, choice and personal relevance. It will also give many smaller retailers the chance to participate easily in a major loyalty programme for the first time - something that many will welcome. It will be interesting to see if the 1% cashback offer will be sufficiently engaging to change consumer behaviour. If not, retailers won’t buy in and the proposition will become diluted. The key might actually be the strength and relevance of Barclaycard Freedom's exclusive offers. These may well have higher perceived value for consumers at a time when I believe many people are seeking out more tangible and indulgent rewards for their brand loyalty.
Unsuitable or offensive? Report this comment