RE: Dissecting the AGMQuote from the article referred to in an earler post:
"Groupe Aeroplan is actually ACTIVELY ENGAGED in promoting Futura's business to any client that is viewed as too small by AER. I'd be willing to guess that the vast majority of business devoid of a loyalty program at this stage are those business with less than 50 locations anyways".
I feel it`s not the 50 location limit which is at issue here. Groupe Areoplan must be impressed with Futura`s Auto Industry initiative. The auto industy would be an important category (ie: financial size) for any major loyalty program. For Futura to recognize this industry category and then be embraced by its members, speaks volumes.
My post of July 2nd referred to Graham Farrell attending the National Auto Dealers Association convention. He noticed that most loyalty programs were merely promotional in nature and not what he feels a true loyalty program should be all about. He saw an industry category (automobiles) which required a loyalty program which could benefit from his vision of what such programs are capable of.
FUT would receive .05 cents/mile revenue for being a value added reseller for the Aeroplan product line. To get $5 million in revenue, they need to sell 100,000,000 Aeroplan miles/year. (34 million miles in 2010 and they expect to double that for 2011). Seems like a long way yet to go yet, but well within range.
At first glance it seems like a ho hum and time consuming way to make money being a reseller. But if Mr. Farrell's vision of a loyalty program gains momentum, investors will quickly notice. The revenue and other opportunities will follow. Having a high retention rate among retailers with Futura, is a testament to a loyalty following for Futura itself. That is the most important test for any company.