Corrections or additions?
This article was prepared for the February 21,
2001 edition of U.S. 1 Newspaper. All rights reserved.
From E-marketing Comes E-loyalty
Datamark Technologies uses magnetic stripe and barcode
technology to implement a points and reward system for encouraging
frequent customers. It is being acquired by Impower and it will add
in-store customer loyalty programs to Impower’s E-marketing solutions.
"Together we can offer more of a total solution," says Jack
Kaplan, founder of Datamark, located at the Technology Center in North
His card-based loyalty programs are used by such clients as Ruth’s
Chris Steakhouse, Modell’s Sporting Goods, J. Crew, Brooks Brothers,
Exxon, Sinclair Oil, and Electronics Boutique.
Kaplan’s "E-Gift" program replaces paper gift certificates.
He estimates that E-Gift cuts at least 30 percent of the
and accounting costs of traditional paper gift certificates. For the
retail industry, E-Gift can be combined with a merchandise return
His "Patron Plus" loyalty program captures transactions at
the point of sale and customizes reports. A customer simply enters
a store, buys a steak or a basketball or a sweater — and can sign
up with this first purchase. The amount of the first purchase is
as "points" toward an award. All customer information
with each purchase is sent daily to Datamark, where it is analyzed.
The award structure, set up for each business by the individual client
companies, determines when the customer receives a reward: a special
promotion, money off a purchase, or a free gift.
Next, the information is combed through to discover the best
what they are buying, and which locations they frequent. Datamark
evaluates solutions for each client. This type of information is
for marketing purposes and is more personal than a system like
in which no customer information is recorded.
With a BS in industrial engineering from the University of Colorado,
Class of 1970, and an MBA from the City University of New York. Based
on his experiences in starting and managing three successful
he teaches entrepreneurship courses at Columbia Business School and
has written a book, "Getting Started in Entrepreneurship."
He worked on smart cards in 1990 at Smart Card International and
his own firm in 1992. (U.S. 1, January 13, 1999). In early 1998, GE
Capital bought almost a 25 percent share of Datamark Technology and
will now be a shareholder in Impower.
The smartest thing about Datamark’s card is the way it produces
Kaplan says. Datamark’s loyalty programs have increased the number
of visits that customers make to stores by as much as 30 percent and
have increased the dollars spent per purchase in excess of 20 percent.
— Barbara Fox
Brunswick 08902. Jack Kaplan, president. 732-873-5322; fax,
Corrections or additions?
This page is published by PrincetonInfo.com
— the web site for U.S. 1 Newspaper in Princeton, New Jersey.