By DANIEL RIORDAN
A new customer rewards programme backed by Eric Watson and listed venture capital company Strathmore Group plans to create four millionaires a year.
Global Online Promotions' Kachingo! programme was launched this week at the 102-store Super Liquor chain. Global Online expects to sign a similar deal with a major
supermarket chain within a few days and is talking to other national retailers including a petrol company and a fast-food chain.
Strathmore owns a third of Global Online, Mr Watson 52 per cent, and company management the rest.
Founded two years ago by chief executive Chris Berryman and business development director Chris Aikin, the company has spent $5 million developing its technology, and is expanding into Australia early next year (although the law prevents it giving away cash there).
But Global Online's NZ general manager, Mary Vance, says the company views New Zealand and Australia as merely test markets for its ultimate aim - breaking into the US, where retailers spent about $400 billion on sales promotions, rewards and coupon programmes last year.
The company has set up an office in San Francisco and is sounding out potential American partners.
Global patents protect the technology, which has been developed over the past three years in association with IBM and Wellington computer company CSI.
The point-of-sale technology enables retailers to issue instant prizes to shoppers, as well as giving them tickets for daily, weekly and monthly cash prizes.
Shoppers who spend more than a certain amount, or buy certain products, receive tickets for daily $1000 draws, weekly $10,000 draws and monthly draws of $100,000. In April, Global Online plans to replace these with prizes of $250,000 a month and $1 million four times a year.
Global Online makes its money from participating retailers and the suppliers to the retailers of products featured in the programme.
