B2B2C and Buying Groups

With B2B2C (Business-to-business-to-customer), businesses collaborate with one another for mutual benefit, and to benefit customers. One example is where buying groups such as labor unions, veteran’s associations and cooperatives combine the purchasing power of all of their members to negotiate competitive purchase agreements. These exclusive agreements from market-leading suppliers provide members with cost savings, while creating a sales channel for the businesses involved.

Client incentive programs like airline mileage programs or credit cards companies with “loyalty bonus” programs often negotiate similar discounts benefits, but when they involve the shipping of physical goods or allocation of flights, often lead to bad customer experiences, and complicated accounting and reconciliation. Giftcards provide a more efficient, more user-friendly alternative.

How it works

The buying group simply negotiates a deal on behalf of its members whereby a retailer agrees to sell gift cards at a discount. The buyer group then passes on the discount to their members, as a loyalty reward or incentive. The giftcard issuer offers a discount because the buying group purchases a large amount of cards in one go, bringing the retailer a large revenue windfall. Globally, the buyer groups discussed have members numbering in the millions, each one a potential customer.

In addition, the loyalty programs that are often integrated with giftcards, provide an opportunity to create a large volume of repeat customers.

How can Ogloba help?

Ogloba offer consumer organisations a platform to issue any branded card, based on an agreement they have signed with a retailer, and simplifies the whole process for all parties.

Closed loop cards are issued, and Ogloba ensures they are only redeemable in the related retailer’s stores. An EAN code identifies the card as an Ogloba product, and ensures the transaction is channelled to the Ogloba back-end for authorization. No integration in the cash register is required because the transactions are channelled to the Ogloba platform through the reliable and secure MasterCard or VISA rails.

Every redemption is automatically cleared overnight by the Ogloba platform and settled by the organisation to the retailer the next day, so the retailer receives the funds promptly.

The customer experience is straight-forward too. Before shopping at their preferred retailer, a member buys a digital shopping card at a discount either online, or via an app. It is sent to the member’s email or mobile phone (or via social media), and can be redeemed at the customer’s convenience.

To find out more, please read our detailed overview:

Download: Gift Cards for Associations PDF (124Kb)