Air points plan to reward orders on net

By ADAM GIFFORD

IT product and consumables distributor Renaissance is encouraging customers to make orders through its business-to-business website by giving away Air New Zealand air points.

While Renaissance has to buy the points, encouraging more of its 3000 resellers to do all their ordering through the website should bring significant savings in transaction costs. At present 5 per cent of its $120 million revenue or 17 per cent of transactions go through the site.

General manager Paul Johnston said the deal had taken seven months to put together.

"Air New Zealand is looking to expand its air points programme. It has done it through banks and credit card companies. This is a new direction," Mr Johnston said.

"We're the first off the block with this, and the first to market gets a lead it is hard to claw back."

He said Renaissance expected to give away 6.5 million air points within six months.

Customers earn one point for every $5 of product or $10 of consumables ordered through the website. That means $150,000 of printers or $300,000 of printer cartridges would earn a return economy class trip to Sydney for whoever placed the order.

Mr Johnston said Renaissance discussed the plan with some of its big customers, and no ethical or organisational concerns arose.

"The feedback from vendors is they can also see this as a way to market their products, so they can offer double points if customers buy a certain line."

Renaissance has spent about $1.5 million developing its website and e-business solutions. It is selling those services through its SupplyIT business, which allows customers to create their own business-to-business websites, tapping into the Renaissance product database.