PepsiCo’s first-ever cashback loyalty program, PepCoin, rewards members for buying a beverage and a snack and applies to nearly 70 PepsiCo and Frito-Lay products. Executed via the PepCoin.com website and available only to adults 18+, the program makes transfers to members’ PayPal and Venmo accounts.
Participants earn up to 10% (37¢) cash back by registering at PepCoin.com and purchasing at least one participating Frito-Lay snack and one participating 20-ounce PepsiCo beverage within 48 hours of each other. Once a user’s rewards balance reaches $2, it’s automatically transferred to her PayPal or Venmo digital wallet.
Members earn the rewards by using their phone to scan the front bag codes on specially marked Frito-Lay packages and codes under the cap of specially marked PepsiCo drinks. The codes also can be entered manually.
As of now, there appears to be no PepCoin app. Marketing Daily reached out to PepsiCo to ask why the loyalty program is only available via the PepCoin.com site but had not heard back by deadline.
Companies with multiple brands are increasingly using loyalty programs as a vehicle to sell across their portfolio, according to Jenn Szekely, managing partner, USA at branding agency Coley Porter Bell.
“Hospitality companies have been doing this successfully for a while, and the same strategy can be helpful for CPG companies like PepsiCo,” says Szekely. “Loyalty programs are a great way to increase consumer understanding of a portfolio.”
Kate Hogenson, senior loyalty consultant at loyalty marketing company Kobie, believes the success of PepCoin will hinge on whether it’s sustainable.
“The initial approach is purely incentive-driven, which is usually enough to drive enrollment, but that doesn’t mean it’s enough to create long-term loyalty,” Hogenson says. “The programs that continuously win ongoing engagement, especially from younger consumers, are the ones that can create emotional loyalty by delivering truly engaging experiences.”
While initial rewards are limited to 10%, PepCoin.com says there may be subsequent offers that will allow members to earn additional cash back through limited-time offers.