Loyalty programs have become so popular that, for many consumers, keeping track of all the programs in which they’re registered can become a major chore. That knowledge has led an opportunistic Web-based start-up to create an online points management system.
"I am constantly struck by how people are so into their points programs," says Rob MacLean, newly named president of points.com, an online service that consumers can use as a central resource to track and manage their inventories of reward points from airline, credit card, retail and other loyalty programs. "And I’m also amazed at the difference in how members use their points. Some sit on them forever and others redeem them constantly.
"We are convinced there is an opportunity to help these folks – especially those who sit on their points – to manage their programs correctly so they get the most value. Managed successfully, points programs can effectively add five per cent to anyone’s annual compensation."
Points.com is one of four Web-oriented firms launched by Toronto-based Internet incubator Exclamation. The others include Bigtree.com, an office products vendor; ThinOffice.com, which provides server-based office applications to businesses, and Exponential Entertainment, which has developed Internet-based gaming technology.
Exclamation was founded in 1998 by chairman Marc Lavine, best known for launching Web service firm Cyberplex and Chris Barnard, formerly a partner with Toronto-based merchant bank HDL Capital.
MacLean is no stranger to the reward-points game. Prior to joining points.com, he was vice-president of North American sales for Canadian Airlines. While at Canadian, he was instrumental in refining and repositioning the airline’s Canadian Plus program.
"There are a lot more differences than similarities," he says of moving from an international air carrier to a fledgling online enterprise. "At Canadian, there was the big corner office in a corporate environment. Here, I’m sharing space with six other people in a start-up situation. But what has helped is that running a frequent-flyer program has given me a passion for the loyalty business."
"Loyalty points have become the currency for the new millennium," he says. "We are creating the relationships and tools that will make us a leader in this field."
Termed a "vertical portal," points.com will consolidate a variety of data in linking consumers with the companies offering the loyalty programs.
Based on cardholder interaction, points.com can even provide a form of loyalty program counseling to consumers.
For example, points.com could suggest alternatives for consumers who aren’t making the most of the programs in which they’re registered, says MacLean.
"We can also do event notification, or let you know when you’ve hit, say, the Gold level on Canadian Plus or Aerogold." This can be done on a passive basis, where consumers log on to find out for themselves, or through e-mail notification if the consumer opts for that.
MacLean says program providers are lauding the initiative.
"This requires that we work closely with loyalty program providers," he says. "And we can add value to their programs. We’ve got a lot of work to do, but the initial response from loyalty programs is very positive."
According to MacLean, points.com should be in market by late summer. Much of the marketing behind the launch will actually come from business partners, he adds, who will let their own members know about the program through newsletters and points statements.
