Sunday, February 18, 2007

Rainbow rewards

Another example is a local rewards scheme called Rainbow Rewards.
This is a great looking business driver for small businesses. As a
punter, you register a credit card. As a business you sign up to the
scheme, but it only costs you a small percentage of each transaction
conducted on a registered credit card. This seems to vary from 2% to
17% (don't know how that is decided). As a punter, you get cash back.

So
if nobody walks in, the scheme costs the business nothing. If they do,
well you hope that a percentage would not have come if it wasn't for
the scheme. Rainbow rewards also donate a small percentage of their
total income to the Mile
High United Way
(Denver branch of a national charity).

In their words ....

Rainbow Rewards is the only free and easy
way to get cash back and give back to your local community at the same
time. That's right, you receive cash in your pocket for purchases you
make. And if that's not enough, your purchases result in a donation to
local Public Schools and important local charities like Mile High
United Way.

It's free. It's easy. And it's completely secure.

Through
this program you get up to 20% cash back, local businesses get
marketing advantages, and local schools and charities get a sustainable
source of funding. In exchange for providing marketing support to local
businesses, Rainbow Rewards receives a small marketing fee paid by
participating businesses. You pay nothing to join.

So
all round, a pretty cool scheme. And they are apparently taking it to
other areas of the US. Once they build up their customer database, it
will be a great tool for local marketing activity - wonder if they will
open it up to big brands?

1 comment:

morgdotmac said...

C- If you want more insider info on this company stop by and I'll point you to two ex-Integer employees - Dan Kelman and Jen Sanning (Dan used to be Marc Comina here, and Jen was an Acct. Director).