iHerb Rewards - How to Turn Bad Into Good When Too Much Competition Among Participants Heats Up
iHerb Rewards is iHerb.com's equivalent of a Loyalty Program. A Loyalty Program is s strategy by retailers, both online and offline, to induce customers to maintain on returning, not to mention, buy even more.
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I'm a self-confessed raw food fanatic. But eating "raw" constantly might not be realistic. So, I buy my raw food "condensed" from natural health shops. And much more convenient, by buying them offline, since they offer deeply-discounted products, i discovered that buying them on the web is cheaper.
(Meaning, when a pound of Spirulina sells $10 at Walmart, GNC,or Walgreens, you can get the identical, or their equivalent at $5-$7 depending on which online shop got the better deal from the manufacturer.)
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One the shops I frequent is iHerb.com. During 2009, they created their very own Loyalty Program. Each buyer gets their own "iHerb Referral Code", any by making use of it, the Buyer gets a slew of advantages starting from instant cash discounts, added check-out discounts depending on the amount purchased, free delivery given a certain level of purchase.
One benefit that got unnoticed by regular buyers is the benefit of getting sales commissions across a specific quantity of levels whenever they give or promote their iHerb codes.
It ranged coming from a high of 4% to some low of 1% within the lifetime of the customer.
The normal member shrugged the lowly commissions. Saying "Ooh shucks... 4%? 1%? ... forget it! "
But the entrepreneurial segment, comprising in the 5% "usual suspects" failed to.
2 yrs later, when iHerb began publishing their top 20 "earners", the rush to advertise their very own iHerb codes, through the ranks of the unsophisticated marketers, began.
That's the first Bad.
A lot of competition. And once there's competition from amongst first-time marketers, some unhealthy tactics came out.
Similar to this one.
If the company promoted a "products review" contest with really hefty prizes (say, $ten thousand for the initial place, and $100 to the 100th place), some "No-bombing" surfaced.
This is because the product review is judged by the amount of "No" and "Yes" votes. The greater Yes votes, the better chances that product reviewer will win. And the more No votes? You obtain the concept.
The practice got so bad that the Company was unable to disregard the complaints about this anymore. Their solution? Dispose off the "No" button, and merely leave the "Yes" button!
Touche! That was the very first Good.
The 2nd Bad.
The products review section of the company site began to appear like a circus because the majority of the product reviews that arrived lately gave more prominence for their iHerb referral codes than the actual review of the item!
It's so laughable whenever you read such blurbs as 'Use this to have $10-Off The First Purchase'! -- in the Headline Title of the Product Review!
The Company itself noticed this ugly development. They sent out a circulate that all reviews containing an iHerb referral code any place in the information in the product review "will be removed" by way of a certain date.
To put it briefly, the organization banned such grossly unsophisticated marketing in their iHerb Rewards program.
That was the Second Good.
So in conclusion, like the Yin as well as the Yang, when there's competition, and also the need to win creates negative tactics, it behooves the Company or even the Sponsor to act swiftly and decisively, to continually level the playing field.. This makes sure that their Program stays sustainable and healthy with time.