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 UK and Canada. In the programs that have succeeded, we noted that three crucial elements were present (and were notably missing from the ones that did not) – nationwide consistency and relevancy, utility, and both an online and offline presence.
Plenti launched on May 4th, backed by a significant marketing effort on television, the internet and in-store with all of its partners. It included the requisite co-brand card to accelerate earning (it is a construct of 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.
So how did Plenti fare? Well, it depends…
On Relevancy and Utility
They did secure some national brands, though relevancy will only be there if you happen to have them in your area and already shop with them. But the key question is, 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, anyway.
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 every day spend category, the utility score of Plenti is pretty low. (Note: You can link your grocery store loyalty card to Plenti if it is a participating store here, but after entering a number of different zip codes, not one came up in my local area.)
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, you can use your points for discounts with some of the nationwide partners, but not all. And you need a minimum of 200 points in your account to play. There is no rewards chart telling you what your points are worth, but they give you a hint that points are worth about a penny apiece: “For every 1000 points you earn, you can look forward to at least $10 of savings.”
While this is certainly only phase 1 in the launch of Plenti, 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.
Interested in learning more about how to design an effective rewards programs? Check out our whitepaper on “Designing the Right Rewards Program for Your Business.”
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