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An Original or a Copy?
Apr 1, 2008 12:00 PM , Richard H. Levey
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Quick — is FedEx Kinko's new business loyalty program the original or a copy?

It's a little of both, actually. On April 2, the Dallas-based company is relaunching a year-old effort. Previously called FedEx Kinko's Rewards, the program will be rebranded as My FedEx Rewards, and its Web site address will become Fedex.com/rewards, an adjunct of its main online presence.

The program started last April for a three-month trial. That test was extended for three additional three-month periods before the company made it a permanent part of its marketing strategy.

The rollout was originally scheduled for April 1. But it was changed to avoid “conflict with April Fool's Day,” according to a spokesperson.

So what's changing?

For one thing, during testing the firm figured out how to incorporate its Print Online service (which enables users to send documents for printing to any FedEx Kinko's office) into the program. It had to work through how to track those purchases and apply them to participants' accounts.

“Some of our best members are both Print Online customers and My FedEx Rewards participants,” says FedEx Kinko's marketing specialist adviser Kristy Treleani.

Prize categories, which have been modified several times throughout the test periods, are being rethought yet again. Initially participants could redeem their points — 10 earned for every dollar spent — for electronics products and branded premiums. At times these rewards were enhanced with add-ons from the company's partners. For instance, during the holiday season members earned both American Airlines miles and program points.

All merchandise prizes were eliminated last September in favor of gift cards redeemable at Starbucks, Sharper Image, Target and iTunes, among others. The gift cards proved to be the most popular rewards by far.

Some merchandise is available once again. But choices focus on higher-ticket items, “things participants wouldn't buy for themselves,” according to Treleani.

There also will be some unique premiums, such as offerings from FedEx Kinko's-sponsored Professional Golfers Association events.

Another major difference in the program is the way prize points will be handled. Previously, points earned supposedly expired at the end of each three-month trial. But they always rolled over, and now their life has been extended indefinitely.

The original plan to have them expire was intentional. “We wanted a solid exit strategy in case [the program] wasn't successful,” Treleani notes.

What does FedEx Kinko's get out of all this? The program was established to build a database of small businesses. While Treleani won't give specifics, she says that in the 15 months since testing began, the number of participants has doubled.

Having captured these names, the company is treating them as assets to be cultivated. E-mail messages promote services that reflect members' purchase histories as well as self-reported information like job title and products frequently used. They highlight a participant's point status and a few special online offers. Customers aren't contacted more than twice a month. “We're very careful not to over-communicate with [them],” Treleani says.

As for what's staying the same, the program still awards 10 points per dollar spent. Shoppers still log on to the Web site and enter codes from register receipts for qualifying purchases. And customers still aren't rewarded for shipping activities.

“With millions of shipments, [the program] could go broke,” says Treleani, not entirely tongue-in-cheek. That said, the company is evaluating how it might work shipping transactions into the rewards structure.



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