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Loyalty Program


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Loyalty Program

  1. 1. uality Customer Management PROGRAM LOAYLT Y LOYALT Y C ARD ABSTRACT LOYALT Y PROGRAM TC “UŠĆE” 2010 by Aleksandra Simeon Kostadinovic Konsalting
  2. 2. Loyalty programs are system tools that manage the relations company- customer, through business strategies, which achieve and maintain long-term and profitable relationships with customers. Loyalty program Better conditions for consumers customers, will have as a result of Such mutual interface quality Beter conditions for brands&retailers the trend of increasing sales and achieved Loyalty programs that growing customer base. reward users for loyalty shown. The trend of complexity and Price, quality and image of a expansion of supply in the market particular product or service, is not a for goods and services, as well as a sufficient argument for consumers. LOYALTY PROGRAM large range of different retail stores It is necessary, with the (from shopping malls, trade centres Systematic reward for loyal aforementioned qualities, and and small shops) points to the need implementation a systematic customers for building bridges between the program, to reward loyal Increase sales and customer base bidder and the loyalty of consumers. customers. In order to achieve market, due to the increase of users On the one hand, it is necessary loyalty, it is necessary that the to upgrade the motives of the and spanding per user and the best consumer gets a special place , a consumer in order to continuously customer segment privilege, because they consume the meet the needs of the same supplier. product or service. Also, they retail chains and facilities, which first implemented the system consistently nurturing loyal HRANA I PIĆE FASHION SPORT CULTURE SPENDING FUN BEAUTY HOUSE & DECORATION SEGMENTS: HEALTH TRAVEL LIVING ETC
  3. 3. LOYALT Y PROGRAM SERBIA CONSUMER LOYALTY CARD SHARE OF SPANDING - PARTNERS IN Serbian market is becoming especially topical for the LOYALTY PROGRAM implementation of loyalty program. TC "USCE" has an ideal structure for the setting of Loyalty. Consumers are not able to establish the continuity of Group brands and sales salons that are positioned in the loyalty to certain brands and retail structures, because the shopping center of a major segment of the buying interest of expansion in a short period of time appear always new, and consumers. Given that in Serbia there are no loyalty programs part of the old disappear. that systematically rewarded his loyalty to customers and Consumer Card TC "USCE", the loyalty program, it would determination to stay true to a certain brand loyalty to this have a mission to gather referral partners (brands) that follow program met with great response from customers TC "USCE" the structure of real consumer spending in Serbia. In this case, the loyalty program would have great potential for clustering TC "Confluence" has been designed and trendy turn in and customer retention within your system. relation to the purchase and customers, so it is logical that new trends start from the same center: NEW LOYALTY CARD. THE REST Partners FOOD Food & Beverage & BEVARAGE Home 19% Oil Partnes: 40% Fashion Clothing House Decoration TURIST 3% AGENCY Culture 5% Education 3% Travel 3% Communication 7% Partners: 5% 3% The rest 12% CINEMA PartnerS: PartnerS: HOME FASHION CENTRES
  4. 4. Loyalty Program Elements CLUB Club Consumer Loyalty Program has the mission of uality spreading the benefits to Customer consumers. Management LOYALTY CARD Identification Loyalty Card which on the POS of benefit and allows the identification and award for the customers. SALES AND SERVICE POSITIONS Clearly marked places, which, as partners in the club CONSUMER AWARDING SYSTEMS guaranteed benefits provided to consumers. POINTS: Partners who each purchase rewards points that represent the value (eg. 1 point = 1 din). CSI CUSTOMER SATISFACTION INDEX DISCOUNTS: unit of measure customer Partners who have specific products for satisfaction and control the cardholder's loyalty program, instrument as it offers in relation provide additional discounts. to the expectations of consumers. GIFTS: On the competitive market, where Partners at which points can be companies are fighting for the replaced for certain products but by consumer segments, CSI is buying them with points gained considered a key element of business strategy. PRIVILEGES: The system privilege is unaudited and has a large amplitude that starts direct, personalized contact with individual consumers to special offers, the possibility of doubling the value of points, special methods of purchase, reservations and so on.
  5. 5. Loyalty Programs COUNTRY PROGRAM EFFICIENCY KNOWN IN THE WORLD No.1 TESCO 53% HOUSEHOLDS Tesco GREAT BRITAIN 300% increase in profits since the introduction of loyalty program NECTAR 56% HOUSEHOLDS (1997) GREAT BRITAIN PAYBACK 67% HOUSEHOLDS GERMANY MALINA 38% HOUSEHOLDS RUSSIA UPROMISE 36% domaćinstva USA
  6. 6. Luxury Furniture has a different segmentation of customers of Customer Experience Methodology supermarkets, such as teenage fashion chain, does not belong to Customer Experience is an integrated method of the same segment as a luxury shoe store.). communication and information center methodology study raises Segmentation is the process of separation of groups of consumers CONSUMER EXPERIENCE as a primary measure for the according to common characteristics and define the instruments development of loyalty program. The main focus is properly for the additional motivation of each segment according to its placed loyalty program is a consumer research experience (before, features. during and after purchase). This methodological approach allows the proper placement of rewarding loyal customers and the Restitution Fee highest level of understanding their buying behavior, priorities, Restitution fee is the degree of value that is returned loyal preferences, expectations, and (dis) satisfaction. customer because the value invested in a particular market by The main objectives of such a loyalty program are: purchasing entity. Some structures of market entities (Partners in Increase profitability, and the number of loyal consumers for the Loyalty Program) can provide a lower level of return (eg market segment offers products and services supermarket), while some may approve a higher level of return Rewarding and providing restitution coefficient of loyal customers (or a chain of fashion salon furniture). (or return value), according to the criteria and consumer loyalty (repeat purchases), etc. The loyalty program is a good reason for the introduction Customer Segmentation of gift cards at the level of TC "USCE" Consumers is incorrectly treated as a monolithic group. They, in particular levels of consumption, habits, lifestyles, expectations are belonging to different segments of consumers. It is therefore essential to monitor consumer segments and systems to benefit the Loyalty Program designed to each customer segment. (For ex. An example of possible realization of points per year Partner Profile Monthly spending Yearly spending Restitution fee No.of points Supermarket 200 euro 2400 euro 3% 72 points - euro HOME - 1000 euro 15% 150 points - euro CENTER FASHION 50 euro 600 euro 15% 90 points - euro CLOTHING TRAVEL AGENCY - 1000 euro 15% 150 points - euro TOTAL: 462 points - euro
  7. 7. Functional model Loyalty Program model must be efficient, rich in content and functionally simple. Customer login system to the Club loyalty program and registration must be provided at each retail site that belongs to the structure of the Partners Program. Information and communication system must ensure a secure implementation of the two main objectives: Consumers have simply exercised their rights Loyalty Program (user friendly) Partners in Loyalty Program must receive a simple model of a program, and a system for effective implementation. Loyalty Program Marketing Campaing Loyalty program requires a serious project Promotions Loyalty Program. The campaign to animate as many consumers in Belgrade and Serbia, in order to start a program of as many members, that issued the card loyalty program. Organization Indicators from the global market suggests that the success of loyalty program depends on effective and functional organization. HEAD TEAM MARKETING DATA BASE IT FINANCE& COMMUNICATION TEAM TEAM ADMINISTRATION TEAM
  8. 8. Aleksandra Kostadinović, Simeon konsalting F ields of Exper tise: Integrated Marketing Communication Customer Experience Management (CRM & Loyalty Program) Strategic Management The most significant Projects (as a Project Director): West Ritham Music Festival, Belgrade 1999 Davidof f Award for the Contemporar y Theatre Expressions, Belgrade, 1999 Davidof f Concer t Season, Belgrade, 2000 Microsof t Synergy, Belgrade, 2001 Microsof t XP Launching, Belgrade, 2001 IBM Forum, Belgrade, 2001 Cisco Avvid Live on Tour, Belgrade, 2001 West McLaren Mercedes, Serbia, 1999, 2000 Telekom Srbija, Loyalty Program, 2003-2008 Government of Republic of Serbia, 100 Investment Projects - Zoran Đinđić, 2001 Government of Republic of Serbia, Green Card, 2001 Banca Intesa, Reality Show “ Transforma” ,R T S1, 2005 mt:s, mt:s club, 2003 - 2008 etc.