News On Japan

There's more than points at stake in Japan's reward programs

Jun 26 (Nikkei) - Reward programs and discounts are an attraction for consumers, but they are not exactly a motivator to do better. In a twist on such services, some Japanese companies are introducing point systems that encourage users to be more diligent in various personal tasks and then compensate them for their efforts.

Such endeavors often require a strong will, and a reward acts as an incentive to encourage people to persevere. By dangling such carrots, companies are hoping to entice more customers into using their services.

Times24, a division of Park24 that operates an hourly parking lot service, also runs a car-sharing business called Times Car Plus. Itsue Koiwa, a user of the service in her 30s, finds it fun to gain points in the company's reward program. "It's a good bonus, and a motivation to drive better," she said.

A driver can earn three points if they refrain from sharply accelerating and decelerating, thereby saving gas. Points are also given for such efforts as keeping the car clean and filling it up with gas after driving. Depending on the points accumulated, a user receives discounts on fees or the ability to book cars in a special advance booking period that is not available to all customers.

"The service also sends me emails showing how frequently I accelerated or slowed down the car," Koiwa said. I'm happy when I get a good score. This has made me more conscious of the need to drive in a gentle way," she added.

Times24 began the reward system in hopes of positively influencing the manners of its users. Some customers smoked in nonsmoking vehicles or left cars dirty. But after the program started, more people drive in an eco-friendly way, and cars are cleaner, too. Because of this, the company said its maintenance workload has been reduced.

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