When it comes to online marketing, I'm a sucker for rewards programs, sweepstakes, and the rarest of the rare (at least at financial institutions), premium/VIP services. So I was pretty thrilled when I got an email from PayPal two weeks ago with this headline (see first screenshot):

Jim, welcome to PayPal Advantage

According to the email, I qualified by spending $5,000 in the past 12 months (no problem considering we use PayPal to pay several business suppliers). The email included a $10 gift certificate for use with any eBay purchase (through 20 Dec.).

Taking a page from airline companies, PayPal's main account page now contains a progress bar showing how much you need to spend to qualify for another year of Advantage membership (see last two screenshots).

The website lays out the PayPal Advantage benefits (link):

• Cut to the front of the line when calling customer service
• "Advantage hotline" phone number
• Premium support via "most senior U.S.-based customer service specialists"
• Faster dispute resolution
• Exclusive events with executives meet-and-greets
• Advantage member community/forum (coming soon)
• Advantage member email newsletter (received one issue on 19 Nov.)
• First to hear about the best shopping deals

Analysis: While none of the above is as exciting as the free travel rewards big-spending credit-card customers are accustomed to, these softer benefits are not as expensive either. And receiving recognition, combined with the red-carpet treatment from your financial provider, is an unexpected surprise and excellent customer-retention tool.

Welcome email with $10 certificate for any eBay purchase (17 Nov. 2010)

 Interstitial displayed at login (27 Nov 2010, 1 Dec 2010)

PayPal Advantage landing page (link)

 
PayPal Advantage benefits page (link)

Widget on main page shows progress towards Advantage status

Details page showing specific progress

Summary box close up