Disney Club ending

[cindy_k]

I just read that the Disney Club is closing. A letter was sent to businesses that offer the card to their employees. Here is Q&A that was sent with the letter.

1. I have alot of DC materials at my locations, now that the club is ending, what do I do with them?
A. Please discard all DC materials immediately. Posters should be removed from posted locations, and any DC info on your company's intranet or Internet sites must be removed.

2. We have DC/Sampler info and a link on our company intranet/internet site. Can we keep it "live" until Dec. 12, 2002 or should we remove it now?
A. Please remove it now.

3. We are out of DC materials. Can I order just enough enrollment forms to last until 12/12/2002?
A. No.

4. How will members find out about the close of DC?
A. We will send letters that explain the close of the Club and its effect on individual membershis in October.

4. Many of my employees are members of DC. Will their benefits continue after 12/12/2002?
A. Yes. Individual Member benefits will continue through the expiration date on their membership card or 12/31/2003, whichever comes first.

6. I have an employee leaving for a Disney vacation in two months. Can they still join the DC?
A. Yes, DC membership applications will be accepted until 12/12/2002.

7. If I have more questiobs where can I reach you......
A. They give a phone number here - for chapter directors.

8. What if my employees have questions about Membership.
. Individual members will be receiving letters that explain the close of the club in Oct. but they can go to www.disneyclub.com for detailed info or call Disney's Club's 800 phone number.

This letter came from Dinah Keefe - Disney Club VP. The letter ended saying "Closing the DC on 12/31/2003 has been a difficult decision to make. We thank you for your continuing support and for being a special part of the club."

I don't know why Disney is doing this. It doesn't seem like a smart move to me. :brick: :veryconfu :hammer:

Cindy

 

[hellokitty1]

oh no, i liked getting extra off at the disney store.
too bad, now i have less incentive to go shopping at disney
store.

boo hoo

 

[Talsonic]

It's True!

Because you are a Disney Club Chapter Director, we are sending you advance notice of our decision to close The Disney Club on 12/31/03.

While we will be announcing the Club's closing to each of our Members in October, we would like you to be prepared, should they have any questions.

We would also like your help with the following during the close of the Club:
Please discontinue all distribution of Disney Club info. We will stop processing renewals and new memberships after 12/12/02.
Please remove and dispose of all Disney Club materials from your work locations immediately, including enrollment forms and posters.
Please remove all mentions of Disney Club or Disney Sampler from your company intranet, internet site or employee communications immediately.

To help make your part easier, we have enclosed answers to a few questions you and your employees might have.

Closing the Disney Club on 12/31/03 has been a difficult decision to make. We thank you for your continuing support and for being such a special part of the Club.

Sincerely,
Dinah Keefe
Disney Club Vice President

 

[pheneix]

Well, looks like one of those cutbacks that everyone said I was lying about just happened. As I've said before, this is one of many, many more to come within the next few months to "maximize growth." DC members have historicly been some of Disney's most loyal customers (what a way to make them happy), so why not get every penny you can out of them?

But given that the D Club was already dead to most people when the MK Club died, I doubt many people will care.

Here is some more info:

The Walt Disney Company will discontinue and close down the Disney Club (paid membership) program by December 31, 2003.

If eligible, you can renew your membership through December 12, 2002 for an additional one-year term and all benefits will be maintained as currently offered for a one-year period not to exceed December 31, 2003.

After December 12, 2002 renewals will not be permitted or accepted.

The Disney Club is NOT being replaced by a "free" or other "non-paid" program similar to the former Magic Kingdom Club.

No announcement has been made as to what (if any) offer, program and/or promotion will replace Disney Club.

For more information, call Disney Club at (800) 654-6347

http://mousepad.mouseplanet.com/showthread.php?s=&threadid=10307

 

[Talsonic]

Disney is watching!

Let me add this little piece of information. Prior to The Disney Club, there was the Magic Kingdom Club. I'm sure many of you remember. Now, our family still has a Magic Kingdom Club number in the computers. For example, when we shop at any of the Disney Outlet stores we always get a 10% discount based upon the old MK Club number! A CM at a Disney Outlet store once advised us, "Never forget that number!". Also, I have noticed (and mentioned several times on this forum) that when we make reservations at WDW by phone we lately don't have to provide special codes because our family is all ready "in" the computer and we get the discounts automatically. My assertion here is that future discounts may perhaps be given based upon your spending pattern and computer history with the Disney company. But , hey, what do I know. Just a guess.:lookaroun

 

[prberk]

It just does not make sense at all to offend or upset your most loyal customers. That extra 10% discount or literature distribution is very little to pay for the excitement and repeat business it generates. Even business school flunkies know that it is much cheaper to keep a loyal customer happy than to advertise to pull in new ones...

FYI: Here is the Sentinel article about it:

http://www.orlandosentinel.com/busi...1,0,6111045.story?coll=orl-business-headlines

I can't help but notice the business school buzz-word of the month in that article: "co-branded". I have a business degree, and I understand business school philosophies. But I am about sick to death of the word "brand" these days among Disney executives and every other business article out there. In the eighties the phrase of the day was "market segmentation," and all you could here was about how to segment the market. [Nothing for the whole family anymore: every person was assumed to fit entirely into one neat category by age, gender, or race. (MTV for Teens, VH1 for adults, Disney for.... who, all ages...kids in the daytime, adults at night...until now!)] Now, it is not market segmentation anymore, it is "branding". Disney is the "kids" brand only.

No one cares about the PRODUCT anymore, just the BRAND (name) on it!
I can't help but think of the old cattle farmers who branded their cattle with their ranch name. Not only could they keep their cattle together, but people who bought the beef knew where it came from. What difference did the brand make if the product was not worth a second notice anymore?

Let's stop worrying about the Disney "brand" and take some time on the "product": the thing that inspires loyal customers who want to be in a "club" in the first place!

I am sorry for venting, but I just wish Disney understood the value of its own product, not to mention its most loyal customers.

 

[cymbaldiva]

Good Show!

I agree with you whole-heartedly prberk!!!

I truly fear that Disney is doing itself in with actions like these - reminds me a bit of the company I work for actually! :lol:

BTW...your avatar kicks A$$!!!! :sohappy:

 

[DMC-12]

well this stinks..... I joined back in august for the first time...and now I am getting dumped on...

It seems everything I like gets cancelled or discontinued...I might have to write a letter this time

 

[DMC-12]

I just put 2 and 2 together.... the new card they are talking about is the BankOne/Visa/Disney credit card I posted about awhile back!....wow...I did not know they were going to kill the Disney Club though.....

http://forums.wdwmagic.com/showthread.php?s=&threadid=9875&highlight=bank+one

 

[niteobsrvr]

just a quick note to maybe put this in perspective.

According to Disney the club memrship was about 500,000 people. When you compare that to 30 million which is approximately the number of people who visit just Disney World alone every year, the cost outweighs the benefit to the company. Thats just from a business perspective.

Now the new program. People spend tons and tons of money on credit cards every year. The points systems can rack up pretty high especially if the family member who holds the card is a frequent business traveler. Now we know Disney gets a cut somehow of the money the card makes in fees and interest. If you are going to pay interest may as well pay it to Disney and then get part of it back in free stuff and Merchandise Discounts etc. Beats the heck out of just paying them outright for membership or just giving your money to a bank who will still charge you just to posses their card.

Not to mention, there is a fair chance more people will get and use a Disney Visa which should by correllation make the incentives to have one quite lucrative for the average person.

By the way, things change sometimes, whether we like it or not. After the high flying 90's and various accounting scandals, you can bet your rear end that more changes are in the future at Disney and everywhere else. Its about time the world gets back to reality and Disney starts focusing on Magic as more than a brand. Disney where fantasy is reality and reality is fantastic.

 

[cymbaldiva]

I hear and understand what you're saying...

However I have to say the same thing to this that I said when I learned that ressies for Cindy's required a credit card deposit - Guess it just sux for those of us who do not use credit cards!

No Cindy's ressies, no discounts...what's a girl to do?

 

[niteobsrvr]

I understand what you are saying about credit cards.

I learned a valuable lesson about those a while back and continue to learn valuable lessons now that I only have one.

I dont like them either so I keep one just in case something odd happens. I have used it twice since 2000.

I do keep an Amex card and limit my charges to what can be paid off every month. I am not advertising for AMEX though. Using that strategy you can have any credit card and not get in trouble.

A good example, I recently came in contact with a retired couple who had one credit card. It was Discover so they got I believe 2% back off their purchases every year. Now here is the deal. They used cash only when necessary and paid as many regular bills and made all their purchasers with the card. Then they paid it off every month. In their case, they get paid to carry a card. A careful person could use the new DIsney card the same way.

 

[cymbaldiva]

Lord...I was scared to death to read your post! Turns out we pretty much think alike!

I just spent way too much time and money paying off the college cc debt...I'm not up for any more at this point. It does trouble me that only cc users recieve any benefits - almost feels like discrimination - Hmmm...

 

[niteobsrvr]

:sohappy:


Why were you afraid?

No need to be afraid. LOL, if only more people shared our philosophy. I have lots of theories about credit cardsand the economy. All Learned the hard way just like you.

We just have to keep in mind that credit cards are just a technology. Its the users who get in trouble.

 

[hellokitty1]

http://www.corporate.visa.com/mc/press/press92.html

I will get my Visa card next year!!

 

[inlovewithWDW]

This is an interesting note...

When I made my last ressie in Aug '02, via the Disney Club 1-800 phone number, the CM on the phone must have spent 10+ minutes verifiying my family's information. Items like our kids names & ages, our home address & phone number, he even asked things like "what do you like to do while on vacation." Such as golf, shopping & dining, and it seemed like he was checking off boxes as I answered the questions.

Now why would they go into such detail if they knew they were closing shop in a year?

Just wondering.... :veryconfu


We have since joined DVC and still get some of the bene's that the DC offered (10% off shopping.)

 

[prberk]

Originally posted by niteobsrvr
just a quick note to maybe put this in perspective.

According to Disney the club memrship was about 500,000 people. When you compare that to 30 million which is approximately the number of people who visit just Disney World alone every year, the cost outweighs the benefit to the company. Thats just from a business perspective.

I'm sorry, but I do not know which business school you went to.

Several things are wrong about your blanket statement:

1. 500,000 members times $40 each = $20,000,000 easy money. This more than covers the cost of flyers and administration. These flyers and administration are essentially ads that would have to be made anyway in some form: only in this case you have a complete mailing list of die-hard fans that are not only reliable, but PAY to be on the list. Most businesses in the entertainment or resort business actually spend that kind of money just to find mailing lists.

2. The discounts are more than taken care of by the frequent use by these loyal customers. Most business schools teach, correctly, that the most valuable customer is the repeat customer: because they have already proven that they are interested. Discounts and flyers sent to them remind them and bring them back much more often than the same money spent on mass marketing.

3. The pre-existence of the Disney Club (or its predecessor, the Magic Kingdom Club) does NOT prevent the company from starting the Visa promotion, or any other promotion. Many promotions are run concurrently. Once again, here it is the PRODUCT that is key. If Disney has a superior product, Visa will want to be involved, even without exclusivity. Because otherwise, Disney might give the preference to MasterCard, or American Express (as they have up until now, with "White Glove Treatment" for AmEx cardholders). Don't forget that there are always the AAA discounts that run concurrently, too.

So, sorry niteobsrvr, if I seem rude in my response to you, but your assumption about "business" is just not right.

The only thing I can add is that Disney may have goofed by making this a paid club in the first place. The Magic Kingdom Club had many, many companies offering it as a benefit for more than forty years. That alone inspired loyalty and brought more people to WDW than anything else I have ever seen. Once again, it is intangible, and the benefits cannot be counted simply by looking at the "cost" and known customers: Why? Because you cannot count all the people who looked at the Magic Kingdom Club flyers hanging in workplace breakrooms all over the country (especially East Coast and West Coast), as they have for years, and just looked at it and decided to go to Disney World. It happened routinely at my work, but not as much since the promotional signs for MKC came down over a year ago.

Business, and especially advertising, is more than just a simple formula. Loyalty is priceless. Loss of loyalty is an even greater price still.

 

[Dawnie]

So this new Visa card. Presumably it will be drawn on a US bank. Not much use to me then. At least with the DC card I got the magazine and 10% off at the UK Disney stores. Now I just get a kick in the teeth. :hammer:

 

[Mag1575]

I'm sorry to hear about the closing of the DC. I've enjoyed the discounts that I've received, especially the AP disocunt.

Mark

 

[roiff]

Originally posted by prberk

I'm sorry, but I do not know which business school you went to.

2. The discounts are more than taken care of by the frequent use by these loyal customers. Most business schools teach, correctly, that the most valuable customer is the repeat customer: because they have already proven that they are interested. Discounts and flyers sent to them remind them and bring them back much more often than the same money spent on mass marketing.

Business, and especially advertising, is more than just a simple formula. Loyalty is priceless. Loss of loyalty is an even greater price still.

I often read these boards and very rarely post. But...in special cases I think it is worth it.

I may be grossly misdirected, but I would argue that loyalty to Disney World is not based in ANY way on the Disney Club or any such discount program. I think most people go to Disney World again and again because they enjoy Disney World, not because they were just offered 10% off of merchandise at a local Disney Store.

The Disney Club is NOT like the loyalty programs offered by other companies...it isn't a reward for frequent use. And, so, it doesn't promote loyalty any more than a number of other initiatives.