Why is AirMiles prehistory?
Database marketing makes sense only when improving customer experience. But, considering only the rewards component, when using her AirMiles card in connection with a monthly budget of $300.00 in groceries and $50.00 in pharmacy products, the average Jane earns about 20 points a month. In order to trade a two-slice toaster (at 500 points), she needs to spend about $8,000.00 or wait for more than two years at her expense level – quite a turnoff.Moreover, Jane only earns points for full $20.00 chunks spent. At the end of each week, the marginal fraction under $20.00 is discarded. The program combines lack of incentives with unnecessary meanness. Marketing would fare better without AirMiles.
