How many points do you need to be offered to help your purchase decision?

[dalereardon]

Hi,

Thinking about offering FF points to our business customers. We have 2 different price points - the expensive service is easy as we can afford to offer a substantial number of points and entice customers.

However with a low value purchase how many points would you have to be offered to actually entice you to purchase? Just trying to work out how many points we would need to offer to make a difference. No point offering any points at all if it doesn't increase sales.

Thanks,
Dale.

 

[lovestotravel]

What is a low value purchase ?

A recent example for me was:

5000 points for a $500 spend with Bing Lee recently was enough to get me to spend some $ that I wouldn't have spent otherwise

 

[bismarck]

I think it depends how low value it is.

I think <$20...100 points might motivate me if I was on the fence.

5 points/$ would motivate me >20<100

Over $100, would probably need >1000 points.

 

[lovestotravel]

I do get excited when Woolworths offers 300 points for a $50 spend

 

[dalereardon]

Hi,

We will have some ebooks starting at probably around $9.95 and purchases ranging up to $100.

The large value transaction I spoke of is around $1800 upwards so that has enough margin to offer a substantial amount.

Dale.

 

[Aussie_flyer]

Hi,

We will have some ebooks starting at probably around $9.95 and purchases ranging up to $100.

The large value transaction I spoke of is around $1800 upwards so that has enough margin to offer a substantial amount.

Dale.

I think 50 points per cheap ebook would be fine, but at the $100 ebook 500 is more appropriate

 

[bismarck]

I think threshold spend might work better than pts/$ for something like this.

Maybe 100 for $20, 500 for $50 and 1000 for whatever the large value product is.

 

[Hvr]

What's the product? And can I pay with credit card?

Lots of variables that need to be answered first.

 

[dalereardon]

You can certainly pay with credit card, Paypal or bank transfer - whatever takes your fancy. Businesses that don't allow credit card & absorb the surcharge are just crazy but thats another topic altogether.

I hadn't wanted to self promote but the cheap products will be a range of ebooks dealing with various subjects to do with moving house, finding a rental, moving to Tasmania which is our main focus etc. We are considering developing an online software tool which will be dearer and there will also be personal consultatations ranging in price but say $100 for them.

Then there is the full relocation agent service - Move to Tasmania - Expert Relocation Agents in TAS | Settled In - which ranges from $1800 to $3500 depending if you are renting, buying etc.

My wife does the relocation consultant services personally and publishes a blog - Living in Tasmania Blog - for anyone moving to Tasmania or already enjoying Tassie life - but wants to expand into non personal time services.

Thanks for all the comments,

Dale.

 

[casanovawa]

Lots of things factor in, if it was something you were already wanting to buy and usually do, well if it costs me less than 1 cent per point is usually all its takes for me.... If you are earning on the credit card purchase and then again on the actual purchase and if they are really wanting your service then you might not need to go over the top...

if you went onto the Velocity website you might see how lots of businesses on their structure their offers??? If you ask American Express or NAB you might learn how not to...

 

[dalereardon]

Hi,

Just to report back and thank those who gave feedback.

Sadly neither Qantas or Velocity wish to take on a small business and only want large national businesses that would appeal to the majority of their members.

A shame.

Dale.