Ox&Pen

There is a lot of action in the loyalty space now-a-days. Many entrepreneurs have identified that one thing missing from the omnipresent daily deal sites out there is helping businesses build customer loyalty.

Loyalty programs are nothing new. They’ve been around in some way, shape, or form since commerce began. But perhaps one of the first formal loyalty programs was the Green Stamps program, created by Thomas Sperry and Shelly Hutchinson back in 1896. The basic premise: the more a customer spent at any participating business, the more stamps she receives, and the sooner she would be able to redeem them for rewards.

However, there are loyalty programs sprouting up that have gotten away from this fundamental concept. More and more we are seeing reward programs that don’t take into consideration the transaction itself. For instance, if two friends walk into a merchant and “check in” (the digital version of a loyalty punch card), they would both be rewarded the same amount, even if one of them may spend $50 there and the other, nothing.

Does it make sense for a business owner to equally reward these two people? The customer spending $50 dollars will feel hoodwinked if she knows her budget conscious buddy received the same level of reward. Similarly, as a merchant, which of these two customers would you most like to incentivize to come back to your business?

The last thing any merchant wants is to make an unprofitable customer loyal. Yet, I would argue that the structure of many loyalty programs out there lend themselves to that outcome.

At Ox&Pen, we know there is value in driving someone to a business, so providing incentive for the member to “check in” and get them through the door is in the merchant’s best interest… but it’s just one piece of the puzzle. The goal for that business owner is to then have that member make a purchase… the bigger the better.

Our universal loyalty network is predicated on just this. For each dollar spent, our members receive points that can be redeemed ANYWHERE in our network. The more they spend, the more points they receive. This works out well, because our merchants like it when our members spend money at their establishments… so everyone wins!

While the technological landscape is completely different since the Green Stamps program initiated in 1896, there are timeless aspects of loyalty that are as relevant today as they were back then. Regardless of whether you receive those points via green paper stamps, or scanning a QR code using our smartphone app that then banks your points automatically, the objective is the same… I think Sperry and Hutchinson would agree.

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“I’m an Ox&Pen member and I have 1,276 points. Now what?”

First of all, if you have 1,200 loyalty points, holy cannoli! Second of all, it’s time to get out there and use them.

Keep in mind you can earn points with purchases at merchants in the Ox&Pen network. You’re also awarded points when you check in at merchants using the Ox&Pen app, and you get bonus points for sharing the check-in on Facebook or Twitter.

Earn points with purchases, check-ins, social shares and by inviting friends.

If you want to get lots of points fast, invite your friends to join Ox&Pen; you’ll receive 250 points for every friend who becomes a member.*

Once you’ve earned enough points, you can redeem them for goods and services at any merchant in the network. The points are effectively virtual currency on the Ox&Pen platform. Surprise! You have extra spending power you didn’t know you had.

But now that you know you can spend these points on actual goods and services, what types of things can you get?

Every merchant in the Ox&Pen network offers rewards for different amounts of points. To cash in your points, simply find the merchant you want on your mobile app, select the “Use Points” tab and click “Use Now” next to the

Use your points at any merchant in the Ox&Pen network!

appropriate point value. You’ll then scan the merchant-provided QR code to redeem. If you want to do your homework ahead of time, take a peek at the complete list of rewards, found on the Points tab in your Ox&Pen member dashboard within the web app.

Here are examples of what your loyalty points are worth:

• 500 points:  $6 at Roots Pizza, $6 at Bleeding Heart Bakery and Café, free bakery pastry at Dog-a-holics
• 1,000 points:  $10 at Krista K Boutique, glass of sherry at Vera, $15 at Roots Pizza, $15 at Bleeding Heart Bakery and Café
• 1,200 points:  free entree at Porkchop
• 1,500 points:  $20 at The Fifty/50, $18 at Pizza Persona
• 2,500 points:  free pound of dog food at Dog-a-holics, $30 worth of food and drink at Leopold

Now that you have a taste of what Ox&Pen loyalty points can get you, are you ready to take advantage of free stuff?

*Insider info: Ox&Pen partners with merchants on the network every so often to host events to show appreciation for our members. At those events, members typically have the chance to check in and share for a lot more points than normal. For instance, tomorrow there is a free whiskey and gin tasting at Porkchop. In addition to free tastes and 15% off the bill, Ox&Pen members get double points for check-ins and shares! 

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Eighty degrees? In March? In Chicago? With this weather, most of us are already thinking about Memorial Day, but let’s not forget that St. Patrick’s Day is right around the corner. At Ox&Pen, even though our office walls remain Dutch Orange, we’re celebrating with some Paddy’s Day trivia and by wearing green.

If you couldn’t make it to the South Side Irish Parade last weekend, make sure you find your way downtown this Saturday to watch our beloved Chicago River turn emerald green. Stick around for a bit to see the Downtown St. Patrick’s Day Parade, which runs north on Columbus from Balbo to Monroe.

The river-dyeing begins at 10:00 a.m. and the parade follows at noon. Then, by all means, drink some green beers, but please be safe and get ready for next weekend’s celebration. Ox&Pen is throwing a soft launch party on Saturday, March 24 and we hope to see you there! Find more details on Facebook.

Happy St. Patrick’s Day from all of us at Ox&Pen!

Continue reading “Irish I could earn loyalty points for…” »

Let’s talk about universal loyalty programs. Those of us earning frequent flier miles with an airline that is part of an alliance can likely redeem those miles for free flights on any airline in said alliance. The same is true of some credit card loyalty systems; every dollar you spend translates into a point that can be used at one of several merchants within the credit card’s network.

While the above examples truly embody the idea of a universal loyalty program, neither caters to small, local business owners or their patrons. Rather, those programs work best on a bigger scale; their loyalty networks are typically reserved for large, national (or international) chains.

In the very early stages of conceiving what would later become Ox&Pen, I knew supporting local businesses would be one of our critical objectives and that the loyalty component would be a huge driver in achieving that. I knew the network effect of the above mentioned loyalty programs could be extremely powerful for small businesses, but there were challenges in creating this with seemingly disparate neighborhood specialty shops.

Often, if our favorite mom-and-pop shop has its own rewards program, it involves a punch-card, where, you get something free with every 10^th purchase, but rewards can only be redeemed at that location. This system works well for people who live or work nearby. But if a particular vendor is on the other side of town, the effort required to get there 10 times might outweigh the benefit of receiving something for free. In this case, the punch-card loyalty program isn’t really added incentive to visit that store over another, and both the consumer and the merchant miss out.

However, with Ox&Pen, you can earn loyalty points for purchases and social engagement at a card shop near your home on one side of town, for example, and later redeem those points using your smartphone at that new lunch place near your work on the other. You feel good because you are shopping locally and earning loyalty points at the same time. The owner of the card shop is also happy; he gains an incremental sale that otherwise may have gone elsewhere. What a novel concept: creating a “loyal” customer, even if just a one-time shopper.

Not only does Ox&Pen’s model provide its members with plenty of flexibility in how their hard-earned points can be used; but business owners benefit by joining forces with other small, local establishments. As a network, they can much better compete against their big-box rivals in the loyalty game.

Continue reading “Universal loyalty program built for small, local…” »

As noted in an article on crmtrends.com, the Center for Retail Management at Northwestern University found that while only 12-15% of customers are loyal to a single retailer, that group of shoppers account for 55-70% of company sales.

Simply put, loyalty is essential.

In terms of the consumer-merchant relationship, loyalty begins with the merchant establishing a rapport, which demonstrates dependability and gives consumers a reason to return. Patrons and shoppers, in turn, have the choice to visit again to show appreciation of and devotion to the quality product or service.

But the consumer experience is not in a vacuum. Customers have choices; variables like price or conversations with family and friends could affect what they buy more than purported quality. Sometimes added incentive may be what it takes for a merchant to generate repeat business.

That being said, loyalty rewards programs originated as a solution to the needs and desires of both merchants and consumers. Traditional loyalty programs reward customers for their spending loyalty with points redeemable at a later date.

Such a program is a simple way to retain the customers already acquired through other marketing means. What if merchants went beyond rewarding customers for every dollar spent and incentivized social engagement? Customers would find themselves rewarded for doing things (like posting on Facebook and tweeting on Twitter) they already do.

The social loyalty platform is the next generation. Using this “Version 2.0,” consumers are able to reap rewards as they endorse their favorite merchants. Merchants gain a new channel of communication with their client base and access to very low-cost viral marketing.

It seems so simple, doesn’t it?

Continue reading “Game changer: (Social) Loyalty Platforms…” »