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  •  Incentives R Around, Pi R Squared (and Other Math Jokes)    
     Author:  jcompton
     Dated:  Wednesday, March 09 2005 @ 02:37 AM EST
    CRMuse ArticlesA few people asked me via e-mail on Tuesday why I decided to start CRMuse. Here’s one good reason--I enjoy the flexibility to immediately follow up with a relevant add-on to something I put in print as new information presents itself.

    In an article I wrote about loyalty programs for the March issue of CRM Magazine, I examined the problem of customer loyalty programs. Namely, most of the time, the first mover in the market reaps the benefits for a spell, then competitors swoop in and clone the program. The result? Everybody falls through the floor to fight on more or less equal footing again, except now margins are lower across the industry. Intuitively, we know there has to be a way to attract and retain loyalty in differentiated fashion--and it all comes back to finding ways to make customers smile and believe that their experience has been a good one. In this model, the incentive is the foot in the door, not the actual payoff. I just stumbled upon one, an amusing innovation in the quest for search engine eyeballs.

    Amazon is now tempting its users to find out how to save 1.57% on their purchases--a joke that, to my shame, I didn’t catch on to when I saw it. Amazon wants to split the “pi” (3.14) for people willing to sign in to their A9 search engine and browse around a bit, soaking up Amazon product tabs and miscellaneous banners in the process.

    The part of the pitch I respect isn’t the fact that Amazon is willing to offer a “lost in the noise” discount in exchange for sitting through Web advertising--that form of online bribery has been around since the late 1990s and has only proven marginally effective and widely cloned. It’s the fact that I feel like some marketing executive has been dying to offer a fraction-of-pi incentive campaign for ages, just to get the pun on the books, and that’s a corporate spirit I feel good about dealing with. It’s not going to make me a regular A9 user, but it certainly made me smile, reminding me that it’s not just what’s in the hand being offered to the customer, but the style behind the gesture that counts. Whether it is backed by a confidence-boosting mastery of one’s industry, or a quirky math gag, there has to be a real relationship value created for the customers. It can’t simply be the equivalent of lobbing pennies across the room, because anybody can do that.

    None of the companies mentioned in this article have been clients of CRMuse LLC for at least the past six months. Jason Compton was an employee of CRM Magazine within the past six months.




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  • Incentives R Around, Pi R Squared (and Other Math Jokes) | 4 comments | Create New Account
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    Incentives R Around, Pi R Squared (and Other Math Jokes)
    Authored by: JGillespie on Wednesday, March 09 2005 @ 08:55 AM EST
    At the very least, even if that particular bribe doesn't work to get people to sign up for the A9 search, it will make people talk; which is by and large the most effective advertising available. "Oh, man, it was so funny - Amazon.com has this discount you can get for doing whatever, but it's "half the pie - the pi - get it?" "That's cute! Amazon.com?" "Amazon.com!"
    Can't lose any way you, uh, slice it.
    Incentives R Around, Pi R Squared (and Other Math Jokes)
    Authored by: jcompton on Wednesday, March 09 2005 @ 09:29 AM EST
    Right. Because here we are, giving it airtime.
    Can simple math carry the day?
    Authored by: paleo on Thursday, March 10 2005 @ 07:58 PM EST
    I would be interested in how well this really keeps customers interested above the plethora of things Amazon has already implemented (and perfected in some instances) that make you click on yet another link on their site.

    Also I wonder how many people get that joke altogether. I agree that it might be something the CD of the marketing company has been dying to try for ages, but I doubt that such puns create a real incentive. After all you pointed out yourself that the actual saving is negligible.

    Only time and statistics might tell.
    Can simple math carry the day?
    Authored by: jcompton on Thursday, March 10 2005 @ 08:10 PM EST
    I've been a little confused about Amazon's A9.com strategy myself. I understand their theory--if they know what you're searching for online, it's just that much more information they can plug in to the Big Personalization Engine.

    But the strategy for convincing others to use it has, yes, seemed to be lacking. I admit that I enjoy peeking at the Alexa data for traffic rank, site info... even the thumbnail amuses me for some reason. But as long as there are faster and more efficient search engines (why use A9's "Google-Plus" system when I can... just use Google, and much faster at that?), it's unclear what A9 does for the common man. Thus, enter the pi-over-2 discount.

    It's not a terrible idea. Last time I checked, research showed that roughly half of all Internet users never change their homepages, so that's half the Internet stuck using whatever their OEM was paid to configure. The other half has a lot of long-term Internet users, such as myself, who have likely shifted search engine "loyalty" more than once (I believe I went from HotBot to Altavista to Google) and, therefore, are perfectly apt to switch again, given a good enough reason.