A pocketful of Coins
One of the early predictions from internet futurologists was that it would enable completely new ways of doing business. This included the creation of new corporate currencies that could be easily traded online, bypassing traditional pounds, dollars and euros. So you could swap your Tesco Clubcard points for Airmiles or buy goods directly on the web using your Nectar card.
Obviously some of this has happened, but the dream of virtual currencies have either remained niche (such as Bitcoin) or crashed and burned (Beenz). But this could be about to change with Amazon’s launch of Coins, a new currency/loyalty scheme aimed at users of its Kindle Fire. From May, consumers in the US will be able to buy apps and games using Coins, which have a face value of a cent. To stimulate the new currency Amazon is promising to give away ‘tens of millions’ of dollars worth of Coins to consumers, which they can spend on Kindle app content.
While it is early stages this is a smart move by Amazon. Firstly, it is likely to get consumers spending more. As casinos know if you can make people feel that the currency they are using isn’t real money (in their case gambling chips) then they treat it with less respect and are more willing to wager it. Secondly, it will attract more developers to create apps for the Kindle through Amazon specifically as they benefit from greater revenues.
But where it will potentially get really interesting is when (not if) Amazon extends Coins to the rest of its products and services. Pricing books, DVDs and the million and one other things Amazon sells in Coins, possibly at a slight discount to local currency, will stimulate a whole new economy that Amazon has a lot more control over. And given the thousands of independent merchants who sell goods via Amazon Marketplace the potential power of this new trading bloc will bring other retailers on board – for example offline shops offering the chance to buy goods in Coins rather than sterling.
At the very least Coins provides a powerful loyalty scheme for Amazon – it can’t be a coincidence that the retailer has just cut its long standing ties with Nectar in the UK. Tying in users means Amazon can learn even more about them and consequently offer more tailored products and services (Amazon Telecom perhaps?), enabling it to continue its expansion. Given the havoc Amazon has already wreaked on the High Street, rivals (and even banks) should make sure they are closely watching the next step in its plans………….
February 6, 2013 - Posted by Chris Measures | Marketing, Social Media | Airmiles, Amazon, Amazon Kindle, Amazon Marketplace, Android, Beenz, Bitcoin, coins, Kindle Fire, Loyalty, Nectar, Tesco Clubcard, Virtual currency
2 Comments »
Why Revolutionary Measures?
Marketing is undergoing a revolution. The advent of social media provides the opportunity for one-to-one communication for the first time since the move to an industrial society. This blog will look at what this means for B2B PR and marketing, incorporating my own thoughts/rants and interests. Do let me know your feedback!
About meI'm Chris Measures and I've spent the last 18 years creating and implementing PR and marketing campaigns for technology companies. I've worked with everyone from large quoted companies to fast growth start-ups, giving me unrivalled experience and ideas. I'm now director of Measures Consulting, an agency that uses this expertise to deliver PR and marketing success for technology businesses.
- Would explain where my biscuits go <<Children eat 20 custard creams per day via @thetimes thetimes.co.uk/article/childr… 16 hours ago
- RT @ComputerWeekly: Government fails to meet target for recruiting computing teachers: ow.ly/8kWX309hLzJ 1 day ago
- RT @TimOBrien: Trump deportation plan could cost the economy $5 trillion over 10 years. Yes, $5 trillion. bloom.bg/2l6nH94 2 days ago
- RT @cambridgehack: #CambridgeHack - 25th and 26th February. This is the weekend to push your boundaries and take part in an awesome new pro… 4 days ago
- Really impressed with the speed & ease of renewing my passport online. No paperwork & new passport back in a week! Well done @ukhomeoffice 4 days ago
advertising Amazon Android Apple ARM Artificial intelligence Autonomy Barack Obama BBC BBC Micro Business Cambridge Cambridgeshire Cambridge University CfEL Chris Measures Communications Creativity Crossing the Chasm Daily Mail David Cameron Digital Donald Trump Ed Miliband Edward Snowden Entrepreneur European Union Facebook FIFA Google government Hewlett Packard IBM Idea Transform innovation Intel internet Internet of Things iPad IPhone Journalism Journalist LinkedIn London Malcolm Tucker marketing Mark Zuckerberg Measures Consulting Microsoft mobile MySpace Nick Clegg Nigel Farage Nokia Norwich PR Privacy Public Relations Raspberry Pi Silicon Fen Silicon Valley Smartphone social media Social network Starbucks startup Tech City Technology The Economist twitter United States WhatsApp World Cup YouTube ZX Spectrum
Site infoRevolutionary Measures
Blog at WordPress.com.