Posts tagged “cooperative”

Unexpected thanks

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Some businesses operate on a cooperative model where customers get money back annually, quarterly, etc. Either depending on their activity level (i.e., REI, Discover Card), or on how the business does overall (i.e., co-op grocery stores). AAA doesn’t typically do that, so I was surprised to see a check for $25 from them the other day, thanking me for my business as a policy holder. Sure, they could have discounted my rate at the time I paid (and I vaguely remember them doing this either this year or in the past) but this has a lot more impact. Instead of a brief line item (i.e., LOYAL CUSTOMER DISCOUNT) on my bill, they can communicate a bit more about their intent with the money the are kicking back to me. Call it a dividend and create loyalty with me not only by giving me some cash, but using some rhetoric that suggests a cooperative relationship; that I own a bit of AAA.

Their bottom line (if you ignore printing and mailing costs; which might wash out anyway since some checks won’t be cashed) is pretty much the same, but their chance to have an impact is pretty different.

This isn’t a huge winner or anything, but it’s an interesting example.


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