Kellogg’s announced a new rewards program today called Kellogg’s Family Rewards. Is it a scam or is it a good program? My review is below:
Who can participate: US residents age 18 or older
How to earn points: Find codes inside specially-marked packages. You can enter up to 20 codes per day.
Rewards include: Contest entries, $1.50 off coupons (the cheapest non-contest redemption, at 1,000 points each), movie cash, gift cards, and merchandise including grocery totes, kids’ books, branded swag, and more. Plus, each time you enter a rewards code, you’ll be entered to win a $200 gift card (one awarded daily).
1. As of 12/06/12, the following codes are available for free points:
COSTOFCEREALPOLL (10 free points)
KFRFIBERPLUSPOLL (10 free points)
HOWITWORKS20PNTS (20 free points)
KELLOGGSMEDAL20P (20 free points)
TAKECAREOFYOU20P (20 free points)
KFRN-OWON-FACE-BOOK (20 free points)
LVNGSOCIAL25PNTS (25 free points)
HALLOWEENPARTY25 (25 free points)
JOINKELLOGG2SAVE (50 free points)
ERES-UNGA-NADO-RHOY (50 free points)
FOOD-NETM-AG50-PNTS (50 free points)
redbookKFR50pnts (50 free points)
goodhousemag50pt (50 free points)
KFRFREEGROCERIES (50 free points)
MYFAVCHARACTER50 (50 free points)
2. Note: not all Kellogg’s products have rewards codes. In general, larger cereal boxes have 100 point codes, and smaller boxes are worth 80 points. The Kellogg’s Family Rewards site doesn’t list all of the points values yet.
3. The program’s terms and conditions state that some products may offer bonus points, and that they may discount cashouts on redemptions on occasion. They say the rewards WILL change periodically and without notice; they’re up while supplies last.
4. Accounts will be monitored for inactivity starting on 1/1/13. From that date forward, accounts inactive for more than 90 days may be zeroed out.
So far, I am very unimpressed with this program. Suppose you are able to stock up on large boxes of cereal for $2 a box (you’d have to find them on sale and use a Kellogg’s coupon). If each one had a 100 point code, you’d have to spend $20 (10 boxes @ $2 each) for a 1,000 point coupon for $1.50 off a future purchase. There are coupons out all the time for $.50 off, so this isn’t some kind of outstanding reward we’re talking about here.
Okay, what about free gift cards. We all love those, right? To get a free $5 Starbucks gift card (6,600 points) you’d have to buy 66 boxes of cereal! Yes, I know you can earn points from things other than just cereal, but as a cost benchmark, 66 boxes x $2 (if you got the cereal or whatever equivalent Kellogg’s item on sale) = $132 for a $5 gift card. That’s about a 4% reward. Not exciting.
Kellogg’s wants to get in on the rewards business, like MyCokeRewards is doing…but without a variety of more attainable real rewards, not just coupons and contest entries, consumers will join to see what the hype is about, then drop out.
Kellogg’s, you should have done your research first. This program will go nowhere. (I offer consulting services, btw. Drop me a line.)