Ox&Pen

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.

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Here’s a true story my friend Ryan just relayed to me about a punch card loyalty program:

Seeking escape from the heat last week, Ryan popped into a coffee shop for a cold beverage. Even better—he had a “Buy 10 drinks, get the 11^th FREE” card on him with 10 punches in it—he was due for a free beverage! After ordering, Ryan offered up the fully punched card as payment, only to be told that the coffee shop stopped accepting those punch cards last week!

Ryan’s loyalty to the coffee shop went down the drain along with the free drink he once thought he had. The points he accrued in the form of punches now have a value of zero; he can’t go down the street to the Italian sandwich shop and use them toward his lunch instead. He can’t even just hang onto them to use at another time. All the money Ryan spent on those drinks was spent in vain. Had he known that the loyalty punches would one day hold no value, he may have gone elsewhere to grab a coffee.

That experiences like Ryan’s exist is a big reason Ox&Pen is a universal loyalty network, and not just a loyalty program. Accrual of universal loyalty points means you have the choice of where to redeem your earned points. Points that are redeemable network-wide also serve as something of an insurance policy. If, for whatever reason, you are no longer able to use your points at a merchant in the network, those points still retain value and can be redeemed anywhere else in the network. Such is not the case for loyalty punch cards. Whether it’s a physical card or a smartphone-based loyalty app, the fact remains that those points are likely redeemable only at the merchant at which they were earned.

Don’t let one-dimensional loyalty points happen to you; download Ox&Pen for iPhone® or Android™ and start reaping the benefits of universal loyalty rewards.

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I don’t think a blog can adequately convey how much of a blast we had at West Fest. Many thanks to the West Town Chamber of Commerce for putting on a great event, and to the many friends and neighbors who stopped by the Ox&Pen booth to spin the Wheel of Loyalty. There weren’t any slow moments during the weekend. Some people came over hoping to hear more about a universal loyalty program; some wanted to know what all the commotion was; and some stopped by solely because they like anything and everything purple.

The Ox&Pen booth was conveniently positioned near Roots Pizza and Bleeding Heart Bakery and Café; the fact that we were giving away gift cards for the two hot spots and buying shots at Roots for Ox&Pen members may have been part of the reason for the ever-present and excited crowd huddled around our booth.

We gave away hundreds of prizes, including gift cards, sunglasses, t-shirts, water bottles and tens of thousands of universal loyalty points. We made new friends and networked with local merchants interested in the platform. We ate delicious food from Frontier, our booth neighbor, and cooled off with a few ice-cold beers. Check out a few photos from the weekend on our Facebook page (you can like us too while you’re there!).

It was an awesome weekend and we can’t wait until our next festival appearance—Wicker Park Fest on July 28 & 29! See you there!

P.S.  Those of you who took home loyalty points, keep in mind you can redeem them anywhere in the network! They’re yours to use whenever and wherever you’d like! For a list of rewards you can get with your loyalty points, sign in to your Ox&Pen account and click this link.

The Ox&Pen team at West Fest

Manning the booth

Spinning the Wheel of Loyalty

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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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One of the most exciting parts about explaining Ox&Pen is when people have their “Aha! Moment” (shout out to Oprah, a former West Loop neighbor) as they realize the many benefits of the network. However, it’s not always simple to shed light on every corner of Ox&Pen’s many inner workings.

Sometimes, when I’m sharing what it is Ox&Pen offers, I hear comments similar to, “Oh, so you guys are running daily deals,” which is actually the furthest thing from the truth.

First of all, exclusive promotions aren’t necessarily our bread and butter; our main order of business at Ox&Pen is to provide members the unique opportunity to earn universal loyalty points, but that’s a topic on its own.

But on the topic of promotions, I’d like to take this time to lay out the many ways Ox&Pen is not a daily deal site.

Daily deals require upfront purchases.
To use any daily deal, you must buy it up front. Even if you aren’t sure when (if ever) you’ll use it, you’re locked in. (Did you know that 25-40% of all purchased deals go unredeemed?) Ox&Pen promotions, on the other hand, don’t require advance purchase. If you remember one thing, let it be this: Ox&Pen members don’t pay upfront for a promotion; instead, offers are redeemable at point of purchase.

Daily deals come on a daily basis.
Many daily deal sites have one featured deal, occasionally surrounded by a few other smaller deals. They last for 24 hours, and then they’re gone. So not only do you have to make an upfront purchase, but you are rushed to make the decision to do so, rather than redeeming a promotion on your own time. Ox&Pen exclusive offers are good for many weeks and as a member, you are able to browse them at your leisure and redeem them whenever you want.

Daily deals are inconvenient.
They also lack instant gratification. Generally, daily deal sites are not mobile-based, which means you have to print out a voucher proving you purchased the deal and present it to the merchant. With Ox&Pen, check for exclusive offers as you’re walking down the street. If you find one you’d like to redeem, all you have to do is walk into the merchant and scan a QR code.

Daily deals don’t cater to your interests.
Sure, deal sites may send you daily emails boasting crazy-steep discounts, but how can you be sure they will consistently be for experiences or services you actually want or need? As an Ox&Pen member, set your personal preferences to stay on top of the promotions in which you’re most interested—and ignore the ones that you don’t need at the moment. Better yet, search for the type of offer you want, rather than waiting for it to come to you.

These are just a few ways consumers will notice Ox&Pen departs from the daily deal model. But don’t take my word; sign up for early access to the network and see for yourself.

Coming up next: how Ox&Pen’s network works to generate repeat business for local merchants.

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