November 11, 2005

Bryan Ellis from Bertelsmann China talks about his acid test for loyalty programs

Filed under: Direct Marketing,Loyalty — Administrator @ 11:54 am

I had a chat with Bryan Ellis from Bertelsmann’s Book Club in Shanghai. Bryan is somewhat of an expert in direct marketing and loyalty programs; he was kind enough to pass along some interesting insights and lessons he has learned over his 8+ years at Bertelsmann, such as his acid test for weeding out the “players” from the “non-players” in the loyalty universe.

Bryan’s acid test is made up of three parts:

a. Who are the partners in the coalition?
b. How can a new member leverage this network?
c. What is the spread (buy v. sell)?

He noted that in China, most companies get some derivative of part “a” and part “b”, but no one has every been able to nail the economics of the business…or what he calls the spread…

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