Broadnet S.A. is Ecuador's first independent network service provider focused on digital products and transaction processing. To help Broadnet S.A. remain competitive amid growing rivals, implementing a loyalty card program is proposed. Analyzing the SWOT of loyalty cards, benefits include understanding customer behavior to improve decisions, while limitations include competitors also adopting the strategy. A comparative analysis projects that loyalty cards could increase monthly income from $5 million to $7.2 million and profits from 8% to 10% within 3 months of implementing a $22,000 investment program.

1. Herramientas de Colaboración Digital
IN WHAT WAY IT WOULD AFFECT THE IMPLEMENTATION OF
LOYALTY CARDS AS A FORM OF LOYALTY IN THE CUSTOMER
NETWORK OF BROADNET S.A.?
María José Jurado Mantilla -

2. Broadnet S.A. is the first independent network service in
Ecuador dedicated in the development and marketing of
digital products and transaction processing. It works since
2005 and are recognized as pioneers and leaders in the
marketing of mobile payment services.
The huge demand of mobile services has raised the number
of competitors in the market, and in order to help Broadnet
S.A. to stay in the head, it is proposed to stablish a loyalty
system that allows customers obtain an added value each
time they buy in any of the network members that work
with Broadnet S.A., that’s why the next question is made In
what way would affect the implementation of loyalty cards
as a form of loyalty in the customer network of Broadnet
S.A.?

3. Involves the conceptual parameters that are detailed below:
· Loyalty:
Allows the business to identify the
most frequent customers and · Loyalty objectives:
raise the incomes from Share of wallet and marketing
them, through long-term added relacional
value
· Loyalty cards:
Are a system of the loyalty · Cost-Benefits analysis:
business model and it helps to Used technique for deciding
know the frequency customers whether to make a change
uses the products

4. In order to take a decision of using loyalty cards, we should
analyze different factors based on the SWOT of loyalty cards’
use :
Strengths Weaknesses Opportunities Threats
• Is a very common • People do not often • Help not to • Competition can
system, easily to use the loyalty cards decrease the easily realize the
handle with it by and or do not, customers’ base of strategy used, so
the enterprise and sometimes the the businesses. they would apply it
the customers, does discounts are done Customers can form also. People
not have a high cost anyway but because part of a publicity sometimes
and help to make of the people which method by manipulate them
decisions because it do not use the commenting others obtaining the
helps to know about cards, the expense about the business maximum of
the behavior of of the discounts are they are loyal at and benefits at the
customers with the not always covered. customers also lower of frequency.
business. Other case is that spend more in the
people feel their products the brand
privacy is disturbed offer.
so they do not trust
in the program.

5. Benefits
• Help to know the behavior of the customers can help to make decisions where
implementing new methods or paying more attention of the movement of customers.
• · The lack of image BROADNET S.A. projects to the general public can increase during
the use of the program.
• · People after recognizing the benefits BROADNET S.A. provides can tell others about
the brand and convince them to buy the services that it offers.
Limitations
• Not very trustable for people byhe service offered and the provider because not
everybody knows about the brand name BROADNET S.A. or PONLE+
• · At the moment when the competitors notice the new activity, they will be tempted to
use it too, so the publicity that customers would do, would be ineffective.

6. BROADNET S.A. COMPARATIVE ANALYSIS
Before implementing “Loyalty Cards” During 3 months
Possible customers 8.000 Points of sale; with 4.500 Customers,
with sales of $1.111 each one.
Incomes $5’000.000,00 (Monthly)
Profits 8%
Acquisition costs $4’600.000,00 (Monthly)
After implementing “Loyalty Cards” During 3 months
Possible customers 8.400 Points of sale, with 4.800 Customers,
with sales of $1.500 each one.
Incomes $7’200.000,00
Profits 10%
Acquisition costs $6’480.000,00

7. INVERSIÓN PARA IMPLEMENTACIÓN DE SISTEMA DE FIDELIZACIÓN
DETALLE DE ITEM
VALOR
Hardware $ 6,400.00
Desarrollo de Sistema de control $ 4,000.00
Capacitación a fuerza de Ventas
$ 800.00
Material para emisión de tarjetas
$ 1,800.00
Publicidad en medios e impresa
$ 9,000.00
TOTAL INVERSIÓN $ 22,000.00

8. Broadnet S.A. have a strong base in Ecuador, supported
by a solid foreign base, represented by its subsidiary
Denarii, so the costs of the investments are really cheap in
comparison to the implementation realized with the other
enterprise with the same target .
The investment that will be realized with this loyalty
system represents a 3% of the monthly profit margin, is
justified with the increase of inputs.
It is estimated that in six months the objectives proposed
will be accomplished in the projections done in Table N°1