Nov 11, 2010

Fans are more valuable than normal credit card customers

Banks across Asia compete with each other to convince retailers to give special deals to the bank's cardholders. Lack of differentiation leads to situations like this, where four different banks managed to get the same 10% discount for their cardholders.

Taggo has found a way to get bigger benefits and discounts for a bank's cardholders, with very little cost or effort.

At Cafe Le Caire, one of the restaurants trying out Taggo, OCBC credit card holders get 5% off, while fans of Cafe Le Caire that present their ez-link transit card get 20% off. Why? Because fans are more valuable, thanks to the automatic wall post designed to attract friends of Cafe Le Caire customers. At another restaurant, Paulaner Brauhaus, Citibank cardholders get 15% off, while fans get 20%.

These early examples of Taggo deployments make it clear that fan recognition could generate lots of value for card brands. If OCBC were using Taggo for their promotion, then Cafe Le Caire would be offering a 20% discount to OCBC cardholders that are fans of Cafe Le Caire. If Citibank were using Taggo, their cardholders would get 20% off at Paulaner once they become fans of Paulaner's Facebook Page.

I've been linking marketing and loyalty techniques to the payment transaction for almost two decades now. I am obsessed with inventing fresh new concepts that are innovative enough to merit solid patent protection (for me that's the first basic test, otherwise, I'm not interested). This is the funnest and most exciting development I've been involved with in a long time. At my prior venture (Welcome Real-time, a company I founded in 1996) I searched for years for a simple, attractive way to enhance payment transactions without all the traditional overhead of CRM systems, complicated earning and redemption processes, heavily customized enterprise software integrated into a bank's credit card processing systems, etc.

Taggo passes these tests. We're in for a fun ride.

1 comment:

Anonymous said...

Hi Aneace those are real good examples how Taggo is spreading in hearlands of the garden city.

Taggo is set to define "new way attracting and rewarding fans for being loyal, a new dimension of loyalty perspective.

Now if for a while we decide to check from merchant's point of view, will someone registering on facebook and declaring as fan a real profitable customer? After all systems like taggo, campaigns etc are to increase sells, customer base, revenue and profits (the ultimate goal).

Can taggo build mechanism to differentiate between dieheart fan and just a fan?

Classifying fans further such as Silver/Gold/Platinum classes based on buying behavior will help merchant differentiate between really profitable customers and one timers.

Manoj Bajaj