Ernex system to be used by Harbour Air; stock
options
CSI Credit Systems International Inc
CSU
Shares issued 10,062,500
1998-06-30 close $1.15
Wednesday Jul 1 1998
Mr. James Christensen reports
Harbour Air Seaplanes has chosen to operate a frequent flyer program using the
Ernex system.
Harbour Air, which specialises in flights between Vancouver, Victoria, and
Nanaimo, has developed a frequent flyer program that tracks its customers and
issues points for flights taken. Accumulated points can be redeemed towards the
balance outstanding on future flights with Harbour Air.
CSI rents the Ernex system to Harbour Air and receives a transaction fee for the
processing of all loyalty transactions. The Ernex system also processes all credit and
debit card transactions.
CSI has granted 170,000 in employee stock options at $1.10 expiring five years from
the date of issue.
-30-
Another company buys into ERNEX. Each terminal brings in cash flow every month; it's not a one time sale.
Interesting sidenote: I was reading the Grope and Flail's Report on Business this month, and there's a little blurb on "10 Important Trends in the corporate landscape of the year 2000 and beyond". #4 was "think regional, not global".
This is very much what CSI is doing. One of ERNEX's main competitive advantages over any other loyalty system is allowing businesses that have nothing in common except geography (ie they are in the same regional area) to combine their marketing power by cross-selling. So a high end restaurant can offer a $10 off gift certificate at a local tailor or high end clothier when they their bill at his restaurant comes to more than $100, for example. And vice versa.
Downtown business associations, made up of dozens of local, independently owned mom and pop shops, and national chains too, can do a loyalty program. Or those restaurant programs in major cities can now do on-line loyalty programs. All the couponing that goes on between car rental companies and hotels and travel agencies and destination resorts etc. can now be done online, and changed to meet a new need almost instantly. Going from couponing to online is just naturally the way business is going.
I like the product so much, I bought some of the company. |
