This document discusses multi-brand loyalty programs like Payback, which allow customers to earn rewards points from corporate rewards programs and redeem them with various online retailer partners. It highlights that Payback has been successful by creating a large network of brand partners and offering customers flexibility in redemption. However, research identified opportunities to improve the user experience for earning and redeeming points, and to better emphasize the value of corporate rewards points to customers. Strengthening interactions between users, corporate reward programs, and brand partners could help unlock the full potential of multi-brand loyalty models.

1. MULTI- BRAND LOYALTY CORPORATE PROGRAM – Untouched segment
Executive Summary:
This article is based on user research and study of payback business model of multi –brand
corporate loyalty program. It highlights that model has great potential. Unique feature of corporate supplier of
reward points make this model complete and valuable to end customer. Study suggests better user experience
holds the key to leverage and enhance potential of this model. Article also point out innovative ideas to expand
this model further.
Abstract -Who should read this article?
Loyalty program is well known customer retention strategy. Conglomerate’s like Reliance and
Tata can afford to have their own loyalty programs however, it has its own maintenance cost. Therefor
companies partner with banks credit cards point system to avail this option. Credit cards are old players
in multi-brand loyalty programs. One of the major and successful players in this segment with large
customer base is Payback. This study highlights opportunities and salient features on how Payback has
made multi-brand loyalty program more effective and profitable. It also tinkles upon unexplored ideas in
this space.
In digital evolution mobile ecommerce is rapidly growing. Multi – brand loyalty program can be
a potential segment to explore for banks and startups.

2. Introduction - What is multi brand loyalty program?
“Customer acquisition costs 7 times customer retention.” – KISSmetrics
Retail giants spend millions on loyalty programs for customer retention. It’s a proven marketing
tool. Almost all top retail giants are using it. Individual loyalty program is perceived as forced model of
shopping. Hence the program is called as customer loyalty program and not brand loyalty program. It is
intended to motivate customer behavior to do repeat purchase from same brand.
Payback Company has successfully understood this buyer behavior and revolutionized the
concept of muti –brand loyalty program by building pool of online brand partners. This article highlights
key feature one should keep for program effectiveness.

3. Revenue Model - How does it work?
American Express paid approximately €425 (US $585) million cash for the acquisition which
signifies the importance of model. Payback India has over 50 partner brands in its network. We choose
Payback business model as center as it has uniquely positioned itself in this segment from long time.
Payback offers customer multiple -brand options and linked with corporate rewards. By doing
this it has already created buyer pool with buying ability for its online partner and at the same time
buyer gets freedom of shopping.
Unique position of payback -
• Corporate Loyalty program (Corporate rewards awarded as points)
• Freedom of points redemption with multiple Payback brand Partners
REVENUE MODEL:
Corporates, Online Partners , other online
shops & vendors buy points from payback –
• BUYING EQUATION - 4 POINTS = 1 RS.
Points can be earned by user from -
 Corporate as performance rewards
 merchants & online brands as shopping
rewards
 User redeems points with partner
brands of Payback

4. Research details - what are the opportunities?
Payback has very comprehensive revenue model and is win-win for all stakeholders – Payback,
Online Partners, Corporates and End Customers.
We have identified 3 salient points which business needs to focus while designing
business model for multiple – brand loyalty programs. We have tried to explain significance of these
points further based on our findings from our research.
1. User Interaction with Corporates – Source of reward points
2. User Interaction with Online partner brands – Source of point redemption
3. User experience –Redemption procedure, Earning procedure
We have conducted a user research on small group of payback user. We have identified
opportunities for value ads in this model along with improvement in current model.
User research includes - heuristic analysis and experiential study on payback website,
other similar websites and apps. It also includes user interviews and questioner survey of small group of
payback users and ethnographic study on buying pattern using payback card and its website.

5. User Interaction with Corporates – Source of reward points
Corporate companies reward points to employee as performance acknowledgement. This has
added advantage of tax savings along with quick collection of reward points.
The key feature of this program is that it is corporate loyalty program. Corporate is major
supplier of points or revenue to this model and in return it motivates employee for better performance. Our
research on payback suggests there is no special importance on this feature as users from our user group were not
aware about the value of payback points. This defeats the key USP of the service.
Insights –
Corporate companies’ contributors are the principal benefit of Payback card. Sources like
corporate companies can be major contributor to reward points. It helps in quick build up reward points which
employee spends on partner brands giving sense of happiness and satisfaction. Business need to work on how to
emphasize on value of this source of reward points in its business model.
Ideas to explore –
Business needs to think creative ideas of increasing sources of reward points for end customer.
For example - Can same strategy used in schools, universities, competitions to increase the source of reward points
and customer base for online partner. It will also contribute to increased customer base.

6. User Interaction with Online partner brands – Source of point redemption:
Business needs to create pool of partner brands both online and offline stores from various
segments – like travel, hotel, entertainment, flights, buses, daily purchase etc. User can redeem points with one or
more partner brands. This gives user flexibility to spend on immediate need while preserving it’s spending within
the pool. This model make sure customer is loyal to the partner pool and returns value to all partner brands for
their association.
The key feature of this loyalty program is freedom and pleasure of shopping for end user. It also
makes sure that user spends on partner brands only. Our research on payback user suggested that users tend to
redeem points with bookmyshow or Big bazar at majority. This can make uneven flow of points not by user choice
but result of inadequate user interaction with online partner brands.
Insights –
This buying behavior is result of ease of interaction or positioning of particular partner brand. For
example- while user will spend points on boomyshow for entertainment, it may not use it any time for purchase on
eBay because he is not aware about other options. This is not the intended model. User interaction and partner
brands positioning in mind of user is key for this model to be successful.
Ideas to explore –
Selection of partner brand can have increase value on this model. Points collected on daily
purchase item can help user get better discount in high value purchase or vice versa. Service usage can go up if
these interactions are effective.

7. User experience –Redemption procedure, earning procedure
Point’s redemption and earning procedures are core of this model. Any sort of discontent in user
experience during these processes is fatal for overall business model.
We conducted experiential research on user journey on online partners of Payback. This is one
area where there are many opportunities of improvement like improved information architecture seamless
navigation, reduced cognitive load, data chunking. User interaction and feedback process can be improved across
user journey during shopping online. Similar value ads can be done to points earning method procedure. This
Ideas to explore – can seamless user experience across multiple brands makes user value these points as ancillary
currency?
Summary:
Our user research suggests Payback has excellent business model and has tremendous potential.
Payback end users are very happy and satisfied customer. Study suggests there is huge scope of improvement from
user experience point of view. It also highlights unexplored potential of this segment to Banks and other mobile
ecommerce companies.
Bibliography:
http://it-services.cioreview.in/cxoinsight/multibrand-loyalty-programs-boost-consumer-relations-for-
retailers-nid-113-cid-1.html - By Rahul Rana, COO, PAYBACK India Pvt Ltd.
https://www.payback.in/pb/home?execution=e1s1
http://www.researchgate.net/publication/235361557_Customer_Loyalty_and_Customer_Loyalty_Progr
ams - from Grahame Dowling
https://www.sweettoothrewards.com/blog/retail-loyalty-programs-effective/ - Alex McEachern