FreeMonee Launches the First Gift Network
- During the Finovate fair, a group of former Visa, eBay and Oracle leaders has announced the launch of FreeMonee: the very first “gift network” connecting banks, merchants and customers.
- In this three-way system, consumers adhering to FreeMonee receive discount vouchers from their bank, and can use them with hundreds of US partner brands, stores or restaurants. These gift vouchers are “stored” in the bank card and the amount of the gift is systematically recredited on the cardholder’s account when purchasing goods at the given partner stores.
- The distribution of these gifts is based on a calculation algorithm which takes into account the purchase history of the means of payment and, as a consequence, the customer’s affinities.
- This network is particularly original as it resembles a mutualised customer loyalty program using the bank card as its main medium. The three-way organisation provides this initiative with a business model: the go-between commission pays for the banks’ marketing efforts as they generate traffic and additional income for the merchants granting these discounts.
- Also, the way FreeMonee works offers the cardholders undeniable ergonomy and benefits, compared to traditional loyalty or incentive programs: customisation of the reduction coupons so that they can better fit their centre of interest, single medium (bank card), instant discounts as the account is recredited when the customer pays for his purchase.
- This initiative confirms a strategic renewal in customer loyalty: they are now more profitable and attractive for the customers.