Loyalty Program Awards Buying, Fidelity

Every marketer, it seems, has a loyalty program for something frivolous. But very few think of life’s basic necessities. So thinks one West Coast entrepreneur who has come up with just that: a program that will reward married couples up to $1 million for purchasing over the long term — provided they stay married.

Jim Miller, a long-time entrepreneur in California, has launched UTango, an online consumer loyalty and rewards program that allows singles, engaged couples and newlyweds to leverage a portion of their everyday spending to earn cash rewards that could possibly amount to $1 million in return for becoming long-term, loyal customers at the more than 200 merchants it has lined up so far.

“Shortly after I got married six years ago, I conceived the idea for UTango,” says Miller. “As a newlywed and new father, I quickly came to realize the toughest job we will really ever have is being a good spouse and good parent but that achievement is rarely recognized as a success in our society.”

Over the next few months, Miller plans to prospect for consumers online through wedding Web sites and others sites appealing to the 20 to 40 age group.

The Mercer Island, WA firm will also continue hunting for more merchants through direct selling.

“I didn’t want to be just another loyalty program, that gives free golf clubs for running up a certain number of purchase points,” says Miller, who formerly started up Reflex Communications, a company that offered broadband access to small towns, competing against major telecommunications companies

Through its Web site http://www.utango.com, the program works by rewarding members with Tango Bucks for each dollar they spend with program merchants. Newlyweds married three years or less can select between three life-stage rewards plans ($250,000, $500,000 and $1 million) and should select the level that fits within their budget.

Once a married member has chosen a plan they must remain married throughout the program and maintain the minimum accrued Tango Buck balance in their account in order to receive cash payouts up to $10,000 at 10 years, $100,000 at 20 years and $1 million at 30 years.

UTango is funding these rewards through a fund it has established with AllianceBernstein L.P.

Miller isn’t making any revenue projections right now but thinks UTango could eventually grow into the billions of dollars “if people understand what we are tryng to do,” he says.