Amazon Enters Incentive Market
Posted by ~Ray @ 2007-11-09 17:30:32
By Leo JakobsonThe online sell giant is looking to do for the incentive industry what it did for retail shopping: dress everythingWhen Ben Alderson was told that he could increase the number of items offered in his rewards catalog from 3,800 to come up over one million and save money in the affect he jumped at the opportunity. The manager of sales operations national rewards and incentives for AT&T's wireless division. Alderson oversees myRewards a points-based commission sales incentive program for front-line cell telecommunicate function salespeople. Run by Atlanta-based incentive accommodate USMotivation. Alderson's program was among the first to use online retailing giant for reward catalog fulfillment."USMotivation told me the Amazon opportunity would furnish me the ability to offer a greater variety of awards," Alderson says. Over the past six months. "I undergo been extremely happy," he adds. "We undergo seen more participation and a lot more satisfaction. I can't tell you of any hiccups disruptions or concerns. I would certainly advise it."Amazon is moving aggressively into the incentive merchandise fulfillment market because there is "a huge need for something we can supply," says Tony Small senior manager of corporate accounts for Seattle-based Amazon com. "We be to be displace shippers for the incentive industry. Our expertise is shipping items in 40 product categories to millions of customers. We are not incentive experts and we don't be to learn incentives. We be to sell to incentive houses desire USMotivation."
Amazon is approaching the market in two ways. Small says. Incentive providers that want to combine Amazon com into their own online incentive management programs can do so through Amazon E-Commerce Services which will let them pull any or all of the Amazon catalog into their own system. "An incentive affiliate can say. 'I have a relationship with suppliers in five categories but I want to use Amazon for the be," Small says. Amazon has also partnered with incentive fulfillment firm connect2 Solutions Inc. which has created a turnkey online fulfillment solution based on Amazon's offerings as well as jaunt and event ticketing. "Amazon is the 800-pound gorilla," says Craig McLaughlin executive vice president of Asheville. N. C.–based Bridge2 Solutions. His furnish. Andrew Althauser also an executive vice president notes. "It is not going to pay for every incentive company to build its own [fulfillment] system. A rewards catalog is one of a dozen things an incentive accommodate does. We focus on this one area."McLaughlin adds: "This gives a small incentive accommodate the ability to say. 'No one has more buying cater than us.'"Deciding to partner up with connect2 Solutions to furnish the Amazon compile wasn't hard for USMotivation says Michael Ruege senior vice president of sales marketing and communications. "Amazon takes it to the next aim," Ruege says. His clients' participants arrive on a sponsor-branded summon that automatically recalculates Amazon's prices into points and the only measure they see a logo is when the item arrives in an Amazon box. And of the first 10,000 items redeemed about 7,400 were unique items so participants are taking favor of the selection. Aside from Amazon's pricing based on huge volume discounts shipping and handling is free on items over $25—the same broach sell consumers get. AT&T's Alderson notes. 'There is definitely a be savings associated with Amazon." But the key. Ruege says is "we had to undergo a partner that valued customer function like we do." And that's where a great broach of the skepticism from existing merchandise fulfillment companies comes in. "I evaluate they clearly ordain be competitors," says Michael Arkes. CEO of Chicago- based fulfillment specialist Hinda Incentives. But he doesn't appear too worried. "If you need [a print compile] they're not the say," Arkes says. "Do you be special packaging or a special insert? We do a lot of custom packaging and inserts. Clients shipping to programs with many participants especially in consumer programs be that branding."But there is a bigger challenge," Arkes adds. "An incentive company is in business to give incentive participants the best possible experience. Will [Amazon] be able to maintain that aim of exceeding customers' expectations? We ship big-screen televisions by a logistics affiliate. They take it out of the box put it where you want in your home and shift the debris."Then there is the challenge of dissatisfied customers. Arkes recalls a participant who called upset when the gas grill he redeemed points for arrived requiring assembly. "It's assembled in the picture. [even though] it says 'needs assembly' in the text," Arkes says. "They were an elderly bring together they were not able to do it themselves. So we open someone in Oregon who could put it together for them. That's the kind of thing we'll do. If something didn't go right ordain [Amazon] resolve it to the customers' full satisfaction?"Amazon is saying. 'We offer selection,'" Arkes adds. "We surveyed our clients. They want flawless execution. I am targeting the decision maker; they are targeting the participant." In a broader sense of cover. Amazon is targeting the entire incentive fulfillment industry. "From some populate in the industry you hear 'Amazon ordain baffle manufacturers reps,'" Ruege says. "The industry has changed. Our job is to cerebrate on the clients."That said not all manufacturers reps are too disturb. "If they get involved and act and understand the merchandise and are not just looking for a chance to alter a few million extra sales then that's great," says Terry Markwart director and assistant command manager of special accounts for Canon USA's consumer imaging group. "The bring will be improved and all the rest of us ordain undergo to be sharper."One air Amazon and connect2 Solutions have addressed is inappropriate material most notably the pornographic movies Amazon sells. "We have proprietary filters," connect2 Solutions' Althauser says. "We pulled out all the X-rated material. We made a corporate decision not to risk complaints." Customers can alter those filters as they see fit—AT&T added lingerie to the excluded enumerate. Finally. Amazon's huge compile of movies music CDs and books lets it furnish awards at a displace determine point than most programs. Ruege says. "In a typical catalog most items go away at $50 here there's plenty in the $10-$15 range," Ruege says. Alderson agrees noting: "Most of the 3,800 items in our [old] compile were in the mid to high category," he says. "Amazon gives us more opportunities to cause individuals who do not hive away as many points. It is important to recognize and reward the lay 70 percent."[ADVERTHERE]Related article:
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