2 Responses

  1. Paul Hebert
    Paul Hebert at |

    Thanks for putting the discussion up. I did respond to your comment on our own site and to clarify a couple of points here…

    1. You’re right – there is a tremendous benefit to the company to move their point liability to stock. That is one reason we think companies will want to look at this as an option.

    2. The point valuation is critical. It makes no sense to offer this option and then have the points worth some miniscule amount.

    3. The system is NOT designed to keep people from flipping stocks. There is a 30 day waiting period but that is function of the rules – not a company issue. No one is trying to “lock” someone into the stock.

    4. It won’t be a good redemption option for everyone. There are many people who only get enough points to get a vacation or a couple of tickets back to see the family. Those folks won’t find value in this option. But for a large number of people, who never, ever use all their points – AND – like the company they are loyalty too… it might make sense to buy some of the stock with their points.

    It won’t be for everyone. But we think there are enough loyal customers, who are loyal to the company not just for the points/miles but also because they like the service and the product.