Access hit another big milestone last week when we debuted PowerDeals, a micro-redemption engine built to encourage loyalty while lowering costs for points programs. We were honored to introduce the new service on-stage at FinovateSpring, a two-day event featuring intense, seven-minute sessions featuring the latest in financial technology.
So, what is PowerDeals?
PowerDeals allows customers to redeem small amounts of points or miles for deep discounts at over 300,000 local and national merchants. The goal is to encourage more frequent reward redemptions, generating more member engagement.
Here's an example: in a typical rewards program you can pick up a $10 gift card to a national retailer for a thousand points or more. Or you can grab a PowerDeal to the same retailer, say $10 off a $25 purchase, for just a couple hundred points.
The big difference is program administrators typically pay full price for the gift card, whereas the PowerDeals cost a fraction of the face value. Those savings are passed along to the members, who will make more transactions because of the low redemption thresholds. Those transactions keep them engaged with the brand, which is able to lower costs and accrual liability.
We call it micro-redemption, or giving consumers big value for just a handful of points. In true Access fashion, PowerDeals creates a win-win-win for all involved: programs earn more engagement while beefing up their member benefits; customers get deep discount for a small amount of points; and our merchant partners get the foot traffic and sales they desire.
Erin McCune of PaymentsViews put together a great, extensive live blog of Finovate here, including a recap of the PowerDeals presentation.