BANKINGUnderstanding the Loyalty Programs inBanking
Presented By:   Dheeraj Meshram   Kinnar Majithia   Akankasha Sharma    (P1053)   Nishad Banodkar   Nirav Doshi   Eb...
Contents   Structure of Loyalty    Programs   Reasons Behind    Structure   Program Execution   Benefits   Challenges...
STRUCTURE OF LOYALTY    PROGRAM   SBI     FreedomRewardz    (Debit     Card Plan)   HDFC     Divided  into 3 Programs ...
„FreedomRewardz‟ BY SBI   Customers are rewarded points for using the SBI Debit card   All State Bank Group Debit-card h...
„FreedomRewardz‟ BY SBI   Points can be redeemed till 36 months from the time they are    accrued after which they expire...
SBI FreedomRewardz Partners
LOYALTY PROGRAMS AT HDFCBANK   HDFC bank has 3 distinguished loyalty    programs for customers based on the balance    in...
HDFC BANK CLASSICBANKINGHIGHLIGHTS:   Free EasyShop Gold Debit card   50% waiver on annual locker rental rates   Annual...
HDFC BANK PREFERREDBANKINGHIGHLIGHTS:   Dedicated Relationship Manager   Customized Investment Solutions   Relationship...
HDFC BANK IMPERIABANKINGHIGHLIGHTS:   Imperia client Relationship Manager/Private banking advisor   In-house research-ba...
HDFC Loyalty ProgramPartners
REASONS BEHINDSTRUCTURE   SBI       “FreedomRewardz is an exclusive loyalty program initiated        by State Bank Group...
PROGRAM EXECUTION   SBI       Every new SBI customer is made        aware of the scheme       All State Bank Group Debi...
BENEFITS   SBI     Customer  Retention     Increased business opportunity   HDFC     Business  growth     Retains ol...
CHALLENGES FACED   SBI     Creating   awareness is      difficult due to a huge      customer base     Difficult to tra...
CHALLENGES FACED   HDFC     New   customer asks for      customization     Imperia customers may ask      for certain c...
Q7 Ans
PROMOTIONAL ACTIVITIES   SBI                     HDFC     Dedicated              site for        QuarterlyEvents     F...
BUDGETOperating Expenses(for the period April’09 to March’10)   SBI     20318,68,00   (in „000 Rs.)   HDFC     57,644,...
DATABASE MARKETING   SBI     None    identified   HDFC     EmailMarketing     Sending free gift vouchers
CUSTOMER FEEDBACK   SBI   HDFC
THANKYOU!!!
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Banking Loyalty

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Banking Loyalty

  1. 1. BANKINGUnderstanding the Loyalty Programs inBanking
  2. 2. Presented By: Dheeraj Meshram Kinnar Majithia Akankasha Sharma (P1053) Nishad Banodkar Nirav Doshi Ebrahim Noorani
  3. 3. Contents Structure of Loyalty Programs Reasons Behind Structure Program Execution Benefits Challenges Faced Promotional Activities Budget Database Marketing
  4. 4. STRUCTURE OF LOYALTY PROGRAM SBI  FreedomRewardz (Debit Card Plan) HDFC  Divided into 3 Programs 1. Classic 2. Preferred RM 3. Imperia
  5. 5. „FreedomRewardz‟ BY SBI Customers are rewarded points for using the SBI Debit card All State Bank Group Debit-card holders are pre-enrolled into FreedomRewardz, on individual basis 2.5 points provided for every ` 100 purchase using the debit card Additional points for using the card at SBI‟s partner outlets Special promotions during holidays and festivals
  6. 6. „FreedomRewardz‟ BY SBI Points can be redeemed till 36 months from the time they are accrued after which they expire Points can be redeemed for Gifts, merchandises and services in the domains of:  Personalized products  Airline tickets, Bus tickets  Movie tickets  Entertainment products, Electronic items  Family, Home, Fashion & Beauty products  Music and Sports products  Limited-time Seasonal Rewards
  7. 7. SBI FreedomRewardz Partners
  8. 8. LOYALTY PROGRAMS AT HDFCBANK HDFC bank has 3 distinguished loyalty programs for customers based on the balance in their CASA account  Classic banking (min. ` 1 Lac)  Preferred Banking (min. ` 2 Lac)  Imperia Banking (min. ` 5 Lac)
  9. 9. HDFC BANK CLASSICBANKINGHIGHLIGHTS: Free EasyShop Gold Debit card 50% waiver on annual locker rental rates Annual waiver of `25 on Utility BillPay Improvement of 5 paise over the day‟s rate for Forex transactions
  10. 10. HDFC BANK PREFERREDBANKINGHIGHLIGHTS: Dedicated Relationship Manager Customized Investment Solutions Relationship pricing – Credit card, Loans, Securities Trading account No charges on NEFT and RTGS transactions, Free „At Par‟ cheque books Multiple Demat accounts free of charge Waiver of up to `2000 on service charges like Duplicate
  11. 11. HDFC BANK IMPERIABANKINGHIGHLIGHTS: Imperia client Relationship Manager/Private banking advisor In-house research-backed investment advice Exclusive Imperia Phone-Banking Service Loans, Gold bars at preferential rates, hassle-free foreign remittances Free combined monthly statements of Savings, Current and Fixed Deposit accounts
  12. 12. HDFC Loyalty ProgramPartners
  13. 13. REASONS BEHINDSTRUCTURE SBI  “FreedomRewardz is an exclusive loyalty program initiated by State Bank Group for its debit card holders to reward them with points accumulated over transactions and redeeming the same for a wide range of consumer products.” HDFC  Based bank balance kept by customer with the bank Program Name Balance Required in CASA Account (Rs.) Classic 1,00,000 Preferred RM 2,00,000 Imperia 5,00,000
  14. 14. PROGRAM EXECUTION SBI  Every new SBI customer is made aware of the scheme  All State Bank Group Debit Card holders are pre-enrolled into FreedomRewardz, on an individual basis,  Existing regular customers (without debit card) are tapped HDFC  Monitor the balance of the customer over the quarter  If criteria satisfied, call customer and brief about the program  Old loyalty program customers refer new customers, pitch the same program
  15. 15. BENEFITS SBI  Customer Retention  Increased business opportunity HDFC  Business growth  Retains old customers  Word- of-Mouth publicity
  16. 16. CHALLENGES FACED SBI  Creating awareness is difficult due to a huge customer base  Difficult to train illiterate customers  Changing habits: shift from traditional cash withdrawals to Debit Card use  Unable to make customers aware of the security provided by them  Negotiating and maintaining
  17. 17. CHALLENGES FACED HDFC  New customer asks for customization  Imperia customers may ask for certain customized financial services  Keeping service charges down to make the program viable  Extra staff employed, dedicated relationship manager  Costs incurred by bank to reimburse RM‟s travel expenses
  18. 18. Q7 Ans
  19. 19. PROMOTIONAL ACTIVITIES SBI  HDFC  Dedicated site for  QuarterlyEvents Freedom Rewardz  Seminars/ Workshop  Get-togethers  Donations to CRY, other NGO
  20. 20. BUDGETOperating Expenses(for the period April’09 to March’10) SBI  20318,68,00 (in „000 Rs.) HDFC  57,644,827 (in „000 Rs.)
  21. 21. DATABASE MARKETING SBI  None identified HDFC  EmailMarketing  Sending free gift vouchers
  22. 22. CUSTOMER FEEDBACK SBI HDFC
  23. 23. THANKYOU!!!
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