The other day I was in Toys R Us with my 4 year old. She test drove this pink Barbie Escalade… tried to talk me into buying it but we ended up getting out of there just picking up a couple small things.
When we checked out the lady made a hard play to get me to sign up for their rewards club which gives me points for things when I buy stuff at Toys R Us and get free things or something. She was not giving up on trying to get my to sign up for this card and was pulling out all the stops. Saying stuff like “Do you really like loosing money I just don’t understand why you would want to pass up free money”. (she must have seen my weapons of marketing video lol).
When I asked her why she was trying so hard to sell me on this stupid rewards card she was like, “listen I am just looking out for you. They are giving away so much money that I am sure they will stop the program soon and I don’t want you to miss out!”.
There was nobody behind us in line so I engaged her a bit. I was like listen level with me what do you get like $2 per person who signs up? She said $5. I was like wow is that really worth it? and she replied umm if I get a sign up a hour that basically increases my pay by 50%. Amazing.
Here is a person working her ass off for $10 an hour doing essentially a offline CPA (cost per action) offer paying $5.
She said at Toys R Us they have a handbook which teaches them all these sales techniques.
After I played 20 questions with her she had one for me, “So why don’t you sign up!”.
I told her, “Because people like me buy the data you are collecting. As soon as people see what I am spending on kids stuff I am going to start getting tons of mail to my house and calls trying to sell me shit.”
I was like listen for some people maybe this is a good deal…. But for guys like me who know what happens to the data I can tell you for every person that you get to sign up Toys R Us is getting probably 60-80$ per person selling that data (actually friends in retail tell me its much more depending obviously on the person).
I find reward programs extremely fascinating. Lets be honest. These companies are not losing money on these “reward” programs. We can learn a LOT by looking at all the techniques they use.
Tomorrow I am going to break down one of my favorite “rewards program” and point out every marketing trick they are using and what we, as internet marketers can learn from them.
About the author...
Jeremy Schoemaker – who has written 2415 posts on ShoeMoney.com.
Hi I am Jeremy Schoemaker and ShoeMoney.com is my blog. 99% of the post here are done by me but you will see others occasionally make guest posts. This blog is fun to write but for my day job I run several online companies.
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{ 89 comments… read them below or add one }
You have to wonder where all of the information that you give them ends up.
I haven’t really signed up for alot of rewards cards. I have only signed up to my local gas station because it is where I buy my gas and anything else I need fast.
Thanks
Greg Ellison
lol, i wonder what her reaction was.
Agreed, though I am interested in the whole “rewards” concept. Obviously the companies wouldn’t be doing it unless it was to their benefit. I suppose it encourages us to use a particular retailer, regardless of cost, based on the reward we’re earning. Interesting look into consumer behaviors.
So true! I’ve got (detailed) lists of people that use our sites to find home rentals. Now I just need to find someone to buy the dead leads from me every month. Any dentists and insurance guys out there?
You should have offered her $5 for the handbook. Then get one from
many other stores that have rewards programs and compare them.
I’m interested to know what’s in those handbooks too. I’d probably be able to pick a trick or two.
Did you tell her about the Shoemoney system at the end lol
She’s so pretty! And picking that pink Escalade tells me she’s got class and style too. She just looks so adorable driving that car!
I think sales pitches and tons of marketing emails would be the least of my problems if I just go around leaving personal data every time I sign up with those things. The real problem would be if those data fell into the wrong hands.
I’d probably have signed up just to help her. I’ve done a similar job before when I was in college and it was not as easy as I thought it to be.
I would, too. Some rewards programs do provide certain perks that I get to enjoy. But I’m picky about which ones I sign up for.
Oh, I used to sign up for stuff like that! I didn’t realize that there are people who might actually be buying the information I’m providing.
A lot of people sign up for those. One time I was convinced by a really persistent sales person. I noticed that there were already a number of names who’ve signed up before me.
Yeah. That’s why It’s not surprising why significant numbers of personal identifying information are used for fraud and other crimes. We should think twice before sharing private data.
I’ve never understood how these rewards programs work. I’m really looking forward to reading your post tomorrow.
I’m keeping my Golf Galaxy rewards program no matter what you say
For someone working a low-end salaried job and who hasn’t discovered making money online, $5 per signup is pretty good…she just made the sales pitch on the wrong person :.)
I’m sure your data to them is worth well more than $60-$80…
Smart move, Jeremy! A lot of people provide personal information without really thinking about where it’ll end up. My experience working in the Internet security industry has taught me enough to leave me paranoid about giving out sensitive data like that.
Posts like these are just one of the reasons why I love your blog, Shoe. Keep up the good work.
I’m often a sucker for those things. Even if I know better, some sales people are just too good at their job that I end up signing on anyway.
One great thing about these rewards deals is the feeling that you’re actually saving a lot of cash. Stumble upon a lot of these during the Yuletide and Halloween shopping seasons. Are they really that economical? What do you think?
LOL! Me too! If I’m not in a hurry, I usually spend time checking out what they’re offering.
Maybe that’s why I’m getting all these annoying phone calls from people selling me stuff I don’t even need.
…and for $5 you’re rewarded with annoying calls from telemarketers when you’re in a middle of a shower.
“FTC estimates that as many as 9 million Americans have their identities stolen each year” http://www.ftc.gov/bcp/edu/microsites/idtheft/consumers/about-identity-theft.html — This is why we should take a leaf off your book, Jeremy. Personal information should always be treated as critical data.
Yeah. We should be aware of the risks. That way, we’d learned not to give out personal information so freely.
Looking forward to catch a peek at your post tomorrow, Shoe. To tell you the truth, I am a bit confused how this marketing set-up really works (e.g. how companies decide how much money customers should pay, products that they will offer, etc.). I just know my Thursday’s going be spectacular.
My top of the mind reaction whenever I am offered a rewards program? Fraud alert. Identity theft is so rampant these days that I don’t want to risk it.
It’s a bit scary knowing random people are having access to your personal information. Kudos for the 411, Shoe. I’ll be much more careful from now on. So excited to read your post tomorrow.
Wow, so we’re actually ripped off instead off saving cash? Fight the power! LMAO
Aha! So that’s why you can find rewards deals almost anywhere. Mystery solved.
Quite a lot of lessons learned from offline marketing from that preview post. Will definitely catch the big one tomorrow. Keep the good stuff rolling.
Selling customer data has been a marketing strategy ever since time immemorial. Worst experience I ever had? Receiving repeated calls from a telemarketer at 3 a.m. a couple of months ago after I filled up a discount form at a local mall. What gives?
Sadly, it’s not just internet marketers who buy information like that. There’s a thriving underground business that profit from selling collected personal data.
Sweet. Now I’ve got a sliver of an idea why department store personnel are so eager to make me sign up for a “low-cost rewards programs.” Jeremy, just one question: isn’t selling personal information illegal? Or is there a loophole somewhere which gets them off the hook?
I always try to be careful in sharing my personal information. Even more so online.
I’ve recently signed up for a rewards program in our local store. Makes me feel like it wasn’t exactly a smart decision.
I keep getting several calls from telemarketers too. I never really thought much about where they may be getting information about me. I know better now.
Looking forward to your presentation of the components of these babies, Shoe. Nice post, too.
Same thing happens to me when I visit toy shops with my son. We go there thinking of buying one thing and end up leaving with more than we’ve discussed buying.
Came across a great resource page about how you can avoid identity theft. Kindly check this out if you have the time: http://www.identitytheftcreditfraud.com/
Why is there always a catch when stores offer some money-saving deals? Reverse psychology trick perhaps?
Now that’s what you call a saleslady! I’d gladly fill up a form without even batting an eyelash. Nice way to make Shoemoney Blog patrons excited for your next post though. Best wishes from Georgia.
You’ve got to admire that saleslady’s guts. Honestly, I think that companies like the one she’s employed in make money off people like her. 5 bucks converted into $80 when translated into personal info is such a big difference.
I bet that lady can be really good at Internet marketing.
Because nothing ever comes for free. I have no problem availing of a few rewards program if I feel that they’re good enough for me. It’s the potential risk of the information that I provide that I’m most worried about.
Awesome!
Giving us beginners a preview of your favorite rewards program is definitely a great boost to get our web marketing initiatives rolling. See you tomorrow, buddy.
Hi Jeremy,
)
your 4 year old is so pretty !!! She look so happy! (I hope you brought here the car
The good to know that big brand retail shop like that use incentive program to reward their customer. It’s also interesting how they use the same technique as the online world…or maybe the online world use their technique. Who ever come first.
Finally! A Shoemoney post that will definitely debunk all myths about rewards programs. Thanks a million in advance for the heads up, Jeremy.
Dibs on the first comment for Jeremy’s rewards program post!
Personally, I don’t have much faith in those rewards programs. I’ll check out your post tomorrow and see if my misgivings are not entirely pointless.
I agree that these companies don’t lose money with rewards promos. They are earning more than quadruple of the sign-up fee! It’s a perfect win-win situation if you ask me.
I signed up for that same rewards program the other day. I probably shouldn’t have.
The thing is, there’s always a catch in most rewards programs I know. It’s the spin that makes us sign up.
I have a friend who had her identity stolen. She lost a great deal of money and went through a lot of trouble in fixing the problem.
We could learn a lot from identity theft victims. More stories here http://www.privacyrights.org/cases/victim.htm
I have no problem sharing my personal information if I believe in what I’m signing up for. But I’d expect those who are responsible in handling the data to ensure that they remain private.
I work in retail so I have a fairly good idea about how that works. I think it’s important that companies who employ this strategy should take measures to protect the privacy of their customers.
Does the government have any guidelines what info to regulate? There’s a fine line between sharing personal information and identity theft if you look at it at a different perspective.
The promise of amazing rewards is always hard to resist. Maybe this is why these programs work for a lot of people.
60 bucks for EACH personal info? Is it just me or am I having a wonderful idea where to focus my marketing initiatives next?
What an easy way to earn a lot of cash. So that’s why lots of people are into the department store business.
I’ll wait for your next post. I think the information you’re sharing can help me make informed decisions.
Why haven’t you turned the tables at the end by offering Toys R Us management limited Shoemoney System packs like you gave away at the ASE? Speaking of those, is it true John Chow is raffling away copies?
You had me when you said “friends in retail tell me its much more depending obviously on the person.” How do these companies stick a “price” on an individual?
Can companies sell customers’ personal information without notifying them? Isn’t there any law against that?
Is it true that Facebook sells private information? I configured my settings to private so I won’t have to deal with shit I don’t want. Just a thought.
I’ve heard that too. But I doubt it. After all, they do have a reputation to protect. Unless there’s something going on I don’t know about since I’m no expert.
Well, maybe we just have to be a little bit more stingy with how we share information we wouldn’t want used without our knowledge.
Good point.
I’ve heard from a friend of mine that some of the sales staff even have a standard sales pitch to lure in potential customers. That handbook you were telling us about sure is handy when you don’t know what to say next!
Companies who offer these rewards programs benefit most from them. They have good sales people who can be quite creative in making their pitches thus convincing consumers like me that what they’re offering is the best deal ever.
My wife loves rewards programs. I never really quite figured why.
I’ve read several stories related to identity theft. I think what it’s important that people know more about the importance of keeping personal information private.
I once paid a $50 rewards fee a couple of months ago and the cashier asked me to fill up a form. Turns out they were gathering customer data for a survey. When asked what survey it was, the woman just shrugged and said “to give better service.” Three days later, a load of mail arrived at my place saying I won this and won that. Just merde all of it…
That’s why they’re called “rewards” program. We’re supposed to do something first before we can even begin to enjoy them. Those offers sound too good to be true most times.
I enjoy reading your posts. I find them refreshing and useful. Keep it up!
I think this would make a good challenge… go back to the store and find her, tell her who you are and refer her here.. once shes over the “weirdo” factor have her contact you. Then you take a entry level salaried employee from that store and give her a free membership into the shoemoney system and show how literally anyone can go from $10/hr to being self sufficient and successful.. you change a life and get one hell of a success story to use for promotion…
poor lady, she is missing out a lot. I have met lots of similar people throughout and i honestly respect their hustling. I think she needs the shoemoney system
..will look out for your next post, cheers
hi
Wow,, to think about the department store working that marketing angle with employees. It really is related to internet marketing when you think about it. I never gave that situation that kind of thought.I am enjoying your blog.
I am Rose Kline from Pa. I joined Mark Terrell”s coaching and doing everything he says.That way I know I will make it to the top percentage of people who make it,,I just started a blog and would value your comment or feed back. To your success, Best Wishes
Rose
Jeremy,
You are simply AMAZING. I heard a lot about you and it’s just recently that I found the time to read your articles. You are the real moneymaker!!!! You are great for sharing your knowledge…
ouch, talk about trying to sell a gold nugget to a gold miner……I hate the rewards programs and have seen what “counseling” the cashiers go through to sell these things, even down to threats of employment.
Sad.
They should have some policy that states they will sell your information to others. That would be considerate.
Shoe, Seems every time I comment on your blog I get 5 more guru launch emails from some other marketer. What’s going on there?
dunno… I wrote a post about how to track what people do with your email a while back… maybe you read it?
very very good
This points system makes the customer feel good as they believe they are getting something for little or no effort. In reality it’s a clever way of getting your details to sell on.
I’ve been explaining this to my Mum because she wonders why she get so much junk mail in the post.
I thought this was going to be about how little money you actually save from the program. Toysrus reward program offers a $5 coupon for every $150 dollars you spend. But if you check their website, there is a whole bunch of fine print. Some items do not qualify and give you zero or half a point. Pretty much anything expensive and would earn you a lot of points does not qualify. And the points only last 3 months.
As for identity theft and not leaving your information. I find the idea laughable. In modern times, so many things that we do require entering private data. Just posting on this blog alone required some private data. The reality is people are leaking private data everywhere.
Couple things, I cant stand the cashiers who offer me rewards program sign up’s when I am shopping. I am a guy and I live in a city, it probably took me twenty minutes just to get to the store in the first place, I am annoyed I have to be there, and I am annoyed I have to wait in line. Dont waste more of my time pushing your rewards program on me, if I want to sign up I will go online and research it first.
Second not all rewards programs are created equal, while one program may suck, there are others that are fantastic, There is a reason Marriott Rewards has 43 million members, and its not because the front desk agent is pushing it. Here is a great site for comparing rewards programs if anyone is interested, http://www.rewardsadviser.com