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Loyalty & Co Branding Bank Card & ePayment 2005 26 th October 2005

What does loyalty mean to businesses ? LOYALTY Retention of Customers ? Repeat Purchases ? Create Profitable Customers ? Acquisition of Customers ? More Information on Customers ? Reward Loyal Customers ? Just Another Marketing Program ? Reality …… . … .could be all of the above !!!!

How did it all start – the Loyalty Program way ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What’s the Good News ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

What’s the Not-So-Good News ? ,[object Object],Do Loyalty Programs work -- Not as well as they are intended to ,[object Object],[object Object],Some difference A lot of difference Little difference Don ’ t Know Dont make any difference at all Dont make much difference 12% 23% 13% 24% 16% 11%

Some successful US programs – e-Bay ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Some successful UK programs – Nectar ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Some insights --- Customer & Company perspective ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Loyalty initiatives are not short term marketing tools. They should ,[object Object],---- Immediate gratification ---- More Choice ---- Feel Good factor ---- Does it make sense ---- Ease of availing reward ,[object Object],Loyalty initiatives must also be profitable

What does loyalty mean to the customer today ? Primary drivers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Product / service* Brand** Relationship ,[object Object],[object Object],[object Object],Complete Customer “ Relationship ” Experience Customers want an end-to-end relationship experience Price Customer cost of using your product Customer Perceived value

Customer Relationship experience – Banking illustration Customer Value Perception Organization’s translation of Value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Price Product / Quality Customer Service Brand Relationship

Ask yourselves…..are you truly Customer Centric? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Enterprise approach to Loyalty ,[object Object],[object Object],[object Object],[object Object],2nd : Must be in sync with Business Objectives ,[object Object],[object Object],3rd : Business Process to be customer centric 4th : Design Customer centric & Profitable Loyalty programs ,[object Object],[object Object]

How do you do it ……. ,[object Object],[object Object],Loyalty Strategy Business Objectives Process Changes Loyalty Programs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Role of Partnering & Co Branded Programs ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Partnering or Co branding --- which option to choose ? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Co-Branding in Credit Cards – Is it Profitable? ,[object Object],[object Object],[object Object],Same 64% Less 9% 4% Purchase more 23% Purchase amount from Co-Brand Partner Same 64% Dont know Purchase 23% Frequency of using CoBranded-Partner Same 59% More often 31% Dont know 2% Less often 8%

To summarise ,[object Object],[object Object],[object Object],[object Object],Loyalty has to be earned … ..its hard work … .but at the end you have a profitable customer

Are all loyalty programs successful? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: ‘ Mismanagement of Loyalty, HBR, July 2002

Technology in Loyalty Marketing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Jet Privileges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Shoppers Stop - First citizen ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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