iHerb Rewards is iHerb.com's same as a Loyalty Program. A Loyalty Program is s strategy by retailers, both offline and online, to induce customers to maintain on coming back, and of course, buy more.
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I'm a self-confessed raw food fanatic. But eating "raw" all the time may not be realistic. So, I buy my raw food "condensed" from natural health shops. And a lot more convenient, by purchasing them offline, simply because they offer deeply-discounted products, i discovered that buying them on the web is cheaper.
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In case a pound of Spirulina sells $10 at Walmart, GNC,or Walgreens, you can get the same, or their equivalent at $5-$7 depending on which online shop got the greater deal from your manufacturer., (Meaning)
One the shops I frequent is iHerb.com. In 2009, they created their own Loyalty Program. Each buyer gets his own "iHerb Referral Code", any by utilizing it, the Buyer turns into a slew of advantages ranging from instant cash discounts, added check-out discounts depending on the amount purchased, free freight given a specific degree of purchase.
One benefit that got unnoticed by regular buyers is the advantage of getting sales commissions across a particular number of levels whenever they give or promote their iHerb codes.
It ranged coming from a high of 4% to a low of 1% within the lifetime of the consumer.
The normal member shrugged the lowly commissions. Saying "Ooh shucks... 4%? 1%? ... forget it! "
But the entrepreneurial segment, comprising of 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, from the ranks from the unsophisticated marketers, began.
That's the very first Bad.
A lot of competition. And once there's competition from amongst first-time marketers, some unhealthy tactics became available.
Similar to this one.
When the company promoted a "products review" contest with really hefty prizes (say, $ten thousand for the initial place, and $100 towards the 100th place), some "No-bombing" surfaced.
This is because the product review is judged by the quantity of "No" and "Yes" votes. The greater Yes votes, the greater chances that product reviewer will win. And the more No votes? You obtain the idea.
The practice got so bad that the Company was struggling to disregard the complaints regarding it anymore. Their solution? Get rid of the "No" button, and simply leave the "Yes" button!
Touche! Which was the very first Good.
The Next Bad.
The products review portion of the company site begun to seem like a circus because the majority of the reviews that became available lately gave more prominence for their iHerb referral codes than the actual report on the product!
It's so laughable once you read such blurbs as 'Use this to have $10-Off The Initial Purchase'! -- in the Headline Title from the Product Review!
The Organization itself noticed this ugly development. They sent a circulate that most reviews containing an iHerb referral code any place in the material of the product review "shall be removed" by way of a certain date.
In a nutshell, the business banned such grossly unsophisticated marketing within their iHerb Rewards program.
That was the Second Good.
So to sum up, such as the Yin and the Yang, when there's competition, as well as the want to win creates negative tactics, it behooves the Company or the Sponsor to behave swiftly and decisively, to continually level the playing field.. This makes sure that their Program stays healthy and sustainable with time.
