Equity Loyalty Q & A
"Why would a company want to give away its stock?"
Most people don’t realize the current rewards (whether they are discounts,
refunds, upgrades, golf balls etc…) are kept on the company’s books as a
liability. There is a cost associated with providing all of the rewards offered
today. Worst part about it, these rewards aren't creating loyalty. Once you
understand the cost, a better question is; why wouldn't a company choose
to offer a vehicle to reinvest this liability or use the money set aside to
satisfy this rewards cost, in its own company.
"This has got to be difficult to implement?!?"
Equity Loyalty can integrate with an existing rewards program or can be
used as the basis for creating a new Loyalty Program. Equity Loyalty will
also partner with the program sponsor to come up with a Marketing
campaign to properly introduce Equity Loyalty to its current and future
customers. Consumers will look for those companies participating in Equity
Loyalty.
"We don’t know if our customers would find value."
I would hate to be wrong about this one. If a company’s competition
implements Equity Loyalty these are customers you may never get back.
"Who ultimately gains the value from Equity Loyalty?"
Consumer gains long term value from Equity Loyalty (with no changes to
current habits.) A consumer can build an investment portfolio simply by
making choices on where to shop for goods and services.
Business gains loyal customers, increased sales and increased stock
activity (converting current liability into a reinvestment opportunity.)
Wall Street benefits by introducing millions of consumers to the market for
the first time; and bringing millions of investors back to the market.
"How do you reward business or large institutional customers?"
The Equity Loyalty Program was designed with the consumer and business
in mind. The Equity Loyalty Program Sponsor may choose to extend the
program to its large business partners or limit it to private individual account
purchases. This would be a business to business program. Qualifying
purchases would accumulate points and based on the program criteria,
Equity Loyalty would purchase the stock under a business established
customer account.
"How will customers make the decisions?"
Equity Loyalty is flexible and the specifics of implementation are left up to
the program sponsor. (There are best practices for implantation specific to
each industry, and this will be analyzed prior to the marketing phase.) The
business may offer Equity Loyalty as an option (a supplement) to the
business’ current rewards program, or may offer this as the complete loyalty
program. Equity loyalty can be implemented to satisfy any of the program
sponsors specific restrictions or rules. Equity Loyalty will partner with the
program sponsor’s marketing effort and assist in educating and soliciting the
customer in a way that benefits the program sponsor and proves the benefit
of Equity Loyalty. In most cases the redemption of the accumulated points
for stock will not happen at time of purchase. Equity Loyalty can provide a
business initiated, consumer initiated, scheduled or incremental
purchase/conversion for the issuance.
Most people don’t realize the current rewards (whether they are discounts,
refunds, upgrades, golf balls etc…) are kept on the company’s books as a
liability. There is a cost associated with providing all of the rewards offered
today. Worst part about it, these rewards aren't creating loyalty. Once you
understand the cost, a better question is; why wouldn't a company choose
to offer a vehicle to reinvest this liability or use the money set aside to
satisfy this rewards cost, in its own company.
"This has got to be difficult to implement?!?"
Equity Loyalty can integrate with an existing rewards program or can be
used as the basis for creating a new Loyalty Program. Equity Loyalty will
also partner with the program sponsor to come up with a Marketing
campaign to properly introduce Equity Loyalty to its current and future
customers. Consumers will look for those companies participating in Equity
Loyalty.
"We don’t know if our customers would find value."
I would hate to be wrong about this one. If a company’s competition
implements Equity Loyalty these are customers you may never get back.
"Who ultimately gains the value from Equity Loyalty?"
Consumer gains long term value from Equity Loyalty (with no changes to
current habits.) A consumer can build an investment portfolio simply by
making choices on where to shop for goods and services.
Business gains loyal customers, increased sales and increased stock
activity (converting current liability into a reinvestment opportunity.)
Wall Street benefits by introducing millions of consumers to the market for
the first time; and bringing millions of investors back to the market.
"How do you reward business or large institutional customers?"
The Equity Loyalty Program was designed with the consumer and business
in mind. The Equity Loyalty Program Sponsor may choose to extend the
program to its large business partners or limit it to private individual account
purchases. This would be a business to business program. Qualifying
purchases would accumulate points and based on the program criteria,
Equity Loyalty would purchase the stock under a business established
customer account.
"How will customers make the decisions?"
Equity Loyalty is flexible and the specifics of implementation are left up to
the program sponsor. (There are best practices for implantation specific to
each industry, and this will be analyzed prior to the marketing phase.) The
business may offer Equity Loyalty as an option (a supplement) to the
business’ current rewards program, or may offer this as the complete loyalty
program. Equity loyalty can be implemented to satisfy any of the program
sponsors specific restrictions or rules. Equity Loyalty will partner with the
program sponsor’s marketing effort and assist in educating and soliciting the
customer in a way that benefits the program sponsor and proves the benefit
of Equity Loyalty. In most cases the redemption of the accumulated points
for stock will not happen at time of purchase. Equity Loyalty can provide a
business initiated, consumer initiated, scheduled or incremental
purchase/conversion for the issuance.
| If you have questions that we did not address here, please e-mail info@equityloyaltyllc.com. We would be glad to talk to you. |
"How is buying behavior influenced?"
Influencing buying behavior is the goal. We expect the program to influence
the consumer to purchase goods and services from businesses offering
Equity Loyalty or Equity Loyalty program sponsor partnered businesses.
Influencing purchases within the walls of the program sponsor would be in
the hands of the program sponsor. Example; a grocery store may choose to
incentivize their generic brand of products with a 2% reward rate and a 1%
reward rate for other items. Equity Loyalty can accommodate these
configurations, but it would be up to the program sponsor’s to define and
disclose.
"Is this a transient opportunity or a steady state?"
Customer education and marketing can play a big part in influencing the
habits of the consumer. The focus for this campaign would be highlighting
the benefit for a long term accumulation of Equity Loyalty program sponsor’s
stock. The campaign would introduce the Equity Loyalty end user accounts
as a supplement to a 401K and social security. Ample information and
studies show that long term investment is still the best retirement savings
habit. Once a consumer becomes an “Owner” in the program sponsor, the
consumer is much less likely to support the competition. The customer now
has a vested interest in the longevity and success of the program
sponsor/business. More loyal customers and increased interest based on
Equity Loyalty availability will add up to increased sales. Increasing activity
purchases of program sponsor stock betters the businesses market position.
"Does Equity Loyalty only benefit public companies, how can a
private company participate?"
Equity Loyalty has a program offering for private companies that is similarly
beneficial. Private Program Sponsors (through strategic partnership) can
offer Equity Loyalty, but instead of buying stock in the program sponsor, the
consumer buys into funds created specifically for the program. The fund
would consist of stock/securities of the strategic partnered businesses. The
partnered businesses would then reciprocate the purchases by offering
discounts on goods and services purchased by the Private Program
Sponsor or by direct reimbursement.
"If a company has a large liability on it's books due to their current
program, couldn't a midstream change create a problem financially?"
Equity Loyalty trusts that marketing and education would curb transient
activity and that the Equity Loyalty opportunity will be viewed as a long term
investment. However the program sponsor with assistance from Equity
Loyalty will have to do its due diligence to ensure that an unforeseen
situation does not provoke anything that would impact the business
negatively. It may also be advantageous for a business with a tremendous
liability on their books for their current program to implement Equity Loyalty
by “phase in” and/or a “go forward” basis and allow the current
accumulations run their course under the stipulation of the prior plan.
"What if customers with rewards switch to stock for liquidity and
there is a large "sell off" that brings down the price of the stock?"
The Equity Loyalty program sponsor may choose to identify and disclose
limitations on their program. For example, a business may choose to dictate
a hold period, a penalty for early sales or possibly planned calendar sales
freezes. These limitations would be to prevent adverse affects and level any
possible spikes.
Influencing buying behavior is the goal. We expect the program to influence
the consumer to purchase goods and services from businesses offering
Equity Loyalty or Equity Loyalty program sponsor partnered businesses.
Influencing purchases within the walls of the program sponsor would be in
the hands of the program sponsor. Example; a grocery store may choose to
incentivize their generic brand of products with a 2% reward rate and a 1%
reward rate for other items. Equity Loyalty can accommodate these
configurations, but it would be up to the program sponsor’s to define and
disclose.
"Is this a transient opportunity or a steady state?"
Customer education and marketing can play a big part in influencing the
habits of the consumer. The focus for this campaign would be highlighting
the benefit for a long term accumulation of Equity Loyalty program sponsor’s
stock. The campaign would introduce the Equity Loyalty end user accounts
as a supplement to a 401K and social security. Ample information and
studies show that long term investment is still the best retirement savings
habit. Once a consumer becomes an “Owner” in the program sponsor, the
consumer is much less likely to support the competition. The customer now
has a vested interest in the longevity and success of the program
sponsor/business. More loyal customers and increased interest based on
Equity Loyalty availability will add up to increased sales. Increasing activity
purchases of program sponsor stock betters the businesses market position.
"Does Equity Loyalty only benefit public companies, how can a
private company participate?"
Equity Loyalty has a program offering for private companies that is similarly
beneficial. Private Program Sponsors (through strategic partnership) can
offer Equity Loyalty, but instead of buying stock in the program sponsor, the
consumer buys into funds created specifically for the program. The fund
would consist of stock/securities of the strategic partnered businesses. The
partnered businesses would then reciprocate the purchases by offering
discounts on goods and services purchased by the Private Program
Sponsor or by direct reimbursement.
"If a company has a large liability on it's books due to their current
program, couldn't a midstream change create a problem financially?"
Equity Loyalty trusts that marketing and education would curb transient
activity and that the Equity Loyalty opportunity will be viewed as a long term
investment. However the program sponsor with assistance from Equity
Loyalty will have to do its due diligence to ensure that an unforeseen
situation does not provoke anything that would impact the business
negatively. It may also be advantageous for a business with a tremendous
liability on their books for their current program to implement Equity Loyalty
by “phase in” and/or a “go forward” basis and allow the current
accumulations run their course under the stipulation of the prior plan.
"What if customers with rewards switch to stock for liquidity and
there is a large "sell off" that brings down the price of the stock?"
The Equity Loyalty program sponsor may choose to identify and disclose
limitations on their program. For example, a business may choose to dictate
a hold period, a penalty for early sales or possibly planned calendar sales
freezes. These limitations would be to prevent adverse affects and level any
possible spikes.
| A new concept of this magnitude is going to generate questions... Below, we have posted questions we have received to help explain this ground breaking program. |
| Copyright © 2012 Equity Loyalty LLC - All Rights Reserved. Patent Pending |
"We need to give people more of an incentive to work, to save,
to invest, to create a true future for themselves." Suze Orman
to invest, to create a true future for themselves." Suze Orman