1. Rizwan Sultan Qazi

2. What has changed?
What’s the same?
The Product Life Cycle (PLC)
Building Your Loyalty Program ROI
Effective Customer Engagement
Risk Management
Conclusion

3. Economy is not the only thing that has changed globally –
Regulations have also..
Debit card is fast becoming payment instrument of choice
 Displacing cash and check
 For small ticket purchases
New generation of users more comfortable with debit &
appreciate “green” initiatives
Consumers taking more control of their money
 Increasingly aware of the cost of credit
 Have been focused on debt reduction

4. Card offers are becoming somewhat conservative
 Annual fees
 Interest rates
 Credit lines
Issuers are reducing credit limits and assigning lower limits at
point of approval
Penalty pricing is becoming harder to execute
Tougher risk management – no more border line approvals

5. Credit card remains highly profitable product within financial
institutions
Issuers are attracting new clients with aggressive and
different offers
Multi product clients tend to perform better across all
products – requires segmentation and smart offering
Loyalty programs and rewards schemes are becoming
increasingly attractive and competitive

6.  Important measure of sales
revenues
 Development of the product
should be based on
consumer feedback and test
results
 Engaging clients during the
growth phase is most
challenging as the focus
remains on further growth
 In the maturity phase, focus
should shift to customer
engagement to reduce
decline impact
Development
Introduction
Growth
Maturity
Decline
Time
SalesVolume
 1st 3 months are most important

7. Investment can be in:
 PEOPLE
 Technology and systems
 Marketing and advertising
 Product development and distribution channels
How to improve ROI:
 Focus on PEOPLE – employees and customers fairly and equally
 Communicate often and with transparency and clarity
 Analyze date and create valuable information
 Do more segmentation and differentiate messaging using the insights

8. Loyalty programs generate strong financial results by
engaging clients, creating increased frequency of usage, less
churn, and create powerful incentive for the clients
Finding the right balance between customer preferences and
program cost are critical
Understanding how to manage the program levers also
improves ROI
Increase in
usage
Less
Churn
Promo
Rewards
Cost
Program
Cost

9. From planning to launching a loyalty program and to manage
it over time, it is important to know how the intersection of
costs and revenues impact your bottom line
More flexible the program, more sustainable it is…
This allows more room to do more frequent promotions to
keep clients engaged

10. Communicate new features and updates in a timely fashion
Gather feedback on existing features
Upgrade and cross sell other products and services
Decrease churn or focus on retention
Better Risk Management is important to reduce impact to
bottom line
Improve your Net Promoter Score

11. Does loyalty cannibalize usage?
How can we prevent cannibalization?
What is an acceptable ROI?

12. Better targeting, use of proxy information
Life cycle management to improve authorization approval
rates, reduce fraud
Improve line management strategy to incentivize incremental
usage
Manage delinquencies

13. “Your most unhappy customers are your greatest source of
learning” – Bill Gates, Microsoft
“In business you get what you want by giving people what they
want” – Alice MacDougal
“Customers don’t expect you to be perfect. They do expect you
to fix things when they go wrong” – Donald Porter, BA
Manage delinquencies