4. STRUCTURE OF LOYALTY
PROGRAM
SBI
FreedomRewardz (Debit
Card Plan)
HDFC
Divided into 3 Programs
1. Classic
2. Preferred RM
3. Imperia
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. „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
8. LOYALTY PROGRAMS AT HDFC
BANK
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. HDFC BANK CLASSIC
BANKING
HIGHLIGHTS:
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. HDFC BANK PREFERRED
BANKING
HIGHLIGHTS:
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. HDFC BANK IMPERIA
BANKING
HIGHLIGHTS:
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
13. REASONS BEHIND
STRUCTURE
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. 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. BENEFITS
SBI
Customer Retention
Increased business opportunity
HDFC
Business growth
Retains old customers
Word- of-Mouth publicity
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. 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
