Through a special arrangement, presented here for discussion is a series of recent articles from Lenati's blog.
Back in March, when the news that Plenti — a coalition loyalty program developed by American Express — would be launching in the US, we wondered if this country was finally ready to embrace this concept that has been wildly successful in both the U.K. and Canada. In the programs that have succeeded, three crucial elements were present (and were notably missing from the ones that did not):
• Nationwide consistency and relevancy;
• Utility;
• Both an online and offline presence.
Launched on May 4th and backed by a significant marketing effort on TV, the internet and in-store, Plenti included the requisite co-brand card to accelerate earnings (it's American Express, after all) and some significant brands, including AT&T, Exxon, Macy's, Mobil, Nationwide, Rite Aid, Direct Energy, Enterprise Rent-A-Car and Hulu.
Source: plenti.com
So how did Plenti fare? Well, it depends ...
Relevancy: While securing some national brands, relevancy only happens when you have these brands in your area and already shop with them. The key question: Will this program entice you to shop at Macy's or Rite Aid if you don't currently shop there? Unlikely. And with twice as many stores as Rite Aid, you're more likely to find a Walgreens nearby.
Utility: While telecom, gas, retail and pharmacy are all categories in which the majority of Americans spend money, the utility is lacking at this stage. Gas is the one partnership that involves a purchase more than once per month, but without grocery, mass retail (like Target or Walmart), and other major partners in the everyday spend category, the utility score of Plenti is pretty low.
Online and Offline Presence: Plenti made an effort to ensure both online and offline presence with an online marketplace and an app, but the marketplace is your standard set of participating businesses that are present on most online marketplaces, and the iPhone app has a lackluster 2-star rating.
On the rewards side, points can be secured with some of the nationwide partners, but not all, and a minimum of 200 points is needed to play. No rewards chart tells you what your points are worth, but they appear to be worth about a penny apiece: "For every 1000 points you earn, you can look forward to at least $10 of savings."
While only in phase one in the launch, our advice to American Express would still follow our pre-launch tenets: improve nationwide consistency and relevancy, utility, and both online and offline presence. Pay attention to early reviews. And finally, listen to your customers. Get your early adopters involved in the evolution of your program and they are more like to stay with you for the long haul.