The
JAG
Wire
Integrated Market Strategies
Customers Win With MyPoints

“What I’m doing today is heresy,” laughs Knox Lundgren, president of
San Francisco-based
MyPoints.com.  “It goes against the principles of
‘Marketing 101’ not to build my brand, but I’m taking the customer’s
perspective.” Although his former marketing professor may wince,
Lundgren is clearly winning at one-to-one marketing.

What the customer wants is choices.  MyPoints, a subsidiary of UAL
Loyalty Services, delivers to its members a wide selection of brand-
name products from 300+ partners through its points-based loyalty
programs.  As customers click and buy, they win points toward free
products and discounts.
Knox Lundgren
After a false start, MyPoints eschewed the private-label business deals cut by its competitors, convinced
such programs could not acquire or retain customers with offers tied to a single brand.  MyPoints set out
to build the biggest loyalty site and in fact, has outlasted most of its competitors.  In recent years,
Netcentives, Beenz.com and PointClick have disappeared.

Today, MyPoints ranks as one of the top 10 multi-commerce sites alongside media giants Yahoo! eBay
and AOL.  Members can buy everything from computers to movies and vacations.  Meanwhile,
brand-name companies from Columbia House and Tupperware to United Airlines, Kmart and Office
Depot are drawn to MyPoints' customer acquisition, retention and targeting capabilities.  A survey
collects 400 data points on each member applicant, and clients run their own surveys that members can
fill out for more freebies.  As customers surf through vendor Web sites, their interests and purchases are
tracked and stored in a repository that enables MyPoints to offer a range of direct marketing and
analytical services while still providing anonymity to the individual member.  These services encompass
everything from email and Web-based products to newsletters and ads.

While MyPoints focuses its own outreach and client offerings on direct marketing, it appears to be
delivering the marketing solutions its 10 million members and 400+ advertisers want.

Fall 2003 Issue
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