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Big Brands Migrate to SmileCity

Media Release
27 November 2006


Big Brands Migrate to SmileCity

They have nearly 130,000 members; over 100 retailers sell through them; they have a 45% traffic share of the online shopping rewards market, and they reward their members with loyalty points for their online shopping.

They are SmileCity (www.smilecity.co.nz) and they are surpassing other online shopping sites in New Zealand for popularity, traffic and sales power through their online rewards programme.

When members shop online from SmileCity retail partners they earn reward points – just as they would in real life shopping experiences.

Two members recently used the points they earned on SmileCity to bid for and win two brand new cars in the auctions part of the site – a Hyundai Getz (RRP $22,900) and a Daihatsu Sirion (RRP $18,900). Not a cent changed hands.

Greg du Pille was the Daihatsu Sirion winner.

“I just collected SmileCity points in a lot of different ways,” he says. Mr. du Pille says he spent probably $8,000 to $9,000 online “which I would have spent anyway in bricks and mortar shops.” His online shopping earned him rewards points. “I also collected points by doing online surveys. I joined in 2003 and watched SmileCity grow. I initially used it because I was new to the country, and they had an online forum. I learnt about the country that way. Then I began using it enthusiastically for my online shopping. One of the appeals is I don’t like driving round. I’m lazy. If I shop online, I don’t have to travel half way round Auckland. I can just order online, sit at my mailbox and get rewards points.”

In the end, Mr. du Pille accumulated enough points to bid for the car on the SmileCity site and won it this year.

The retailers who sell online through SmileCity include major ‘real world’ brands such as Woolworths/Foodtown Online, Mitre 10, United Travel, OPSM, Real Groovy, LV Martin, Duty Free Stores New Zealand, and Robbie Burns.

Many retailers have also used the marketing power of SmileCity to send email offers to SmileCity members. By clicking on an email and reading about the offer, a member of SmileCity receives additional reward points.

“The SmileCity concept is a great one,” says Marty O’Donnell, Managing Director of Real Groovy. “It’s a very simple and eloquent offer. It’s about loyalty online – collecting reward points by going through one channel. No-one else is really doing that in New Zealand and it’s a huge driver.”

SmileCity points can be cashed up for personal cheques, providing a certain level of points is reached. This is the most popular way to redeem points.

“Currently SmileCity is writing around 350 cheques per month for New Zealanders. That’s over $10,000 paid out to our members every month,” says SmileCity spokesperson Tom Skotidas. Mr Skotidas says that this has increased from 150 cheques per month just six months ago.

ENDS


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