Dubai, 25 February 2013 Mark Mortimer-Davies CEO Air Miles Middle East

Transcription

1 INSIGHTS INTO AIR MILES MENA Dubai, 25 February 2013 Mark Mortimer-Davies CEO Air Miles Middle East

2 AIMIA S GLOBAL COALITION PROGRAMMES Canada 4.6 MILLION ACTIVE MEMBERS UK & Italy 18.5 MILLION ACTIVE MEMBERS 1.3 MILLION ACTIVE MEMBERS Middle East Over 100M Chile Household s Data Is Analysed Daily 2

3 MENA Region Population Ethnicity KSA 26,534,504 Arab 90%, Afro-Asian 10% UAE Qatar Bahrain 5,314,317 1,951,591 1,248,348 Emirati 19%, other Arab and Iranian 23%, South Asian 50%, other expatriates (incl Western & East Asians) 8% Arab 40%, Indian 18%, Pakistani 18%, Iranian 10%, other 14% Bahraini 46%, non-bahraini 54% Kuwait Oman Jordan Egypt Iraq Iran 2,646,314 Kuwaiti 45%, other Arab 35%, South Asian 9%, Iranian 4%, other 7% 3,090,150 Arab, Baluchi, South Asian (Indian, Pakistani etc), African 6,508,887 83,688,164 Arab 98%, Circassian 1%, Armenian 1% Egyptian 99.6%, other 0.4% 31,129,225 Arab 75%-80%, Kurdish 15%-20%, Turkoman, Assyrian, or other 5% 78,868,711 Persian 61%, Azeri 16%, Kurd 10%, Lur 6%, Baloch 2%, Arab 2%, Turkmen and Turkic tribes 2%, other 1% MENA: top 5 retailers <30% of the business. UK: top 5 retailers >90% of the business 3

4 TELECOM AIRLINE BANKING & FINANCE RETAIL HOSPITALITY & LEISURE WE HAVE SIGNIFICANT STANDALONE PROGRAMME EXPERTISE ACROSS THE REGION PROPRIETARY LOYALTY Design, launch & operate new client programmes Re-launch & refresh existing client programmes Lead innovation in digital, mobile & social media Bring loyalty analytics to bear on behalf of our clients 4

5 AIR MILES MIDDLE EAST MY REWARDS POINTS: Jordan, Egypt, Lebanon, Oman WHILE OUR COALITION BUSINESS CONTINUES TO GROW COALITION COALITION LOYALTY LOYALTY Region s largest coalition loyalty programme HSBC s Premier Credit card rewards programme Over 1.1M members (11yrs) 200+ partners Rewarding global spending at all Mastercard accepting partners globally across all sectors 5

6 MENA IN A NUTSHELL 72 million internet users in Arabia 2500% growth in Arabic language online usage MENA population to reach 611 million by 2050 One new hour of video content uploaded every minute 155 million tweets per day 6

7 ADAPTING AIR MILES THE TO REGION AND ACROSS COUNTRIES

8 THE COALITION IN THE REGION DIFFERS FROM OUR OTHER PROGRAMMES Aeroplan Nectar UK RMMEL Countries Programme Tiering Y N Y Currency Partners Online partners Anchor Sector Airline / Financial Retail Fractured Impact of government Communication methods Post SMS FAX HTML x x X 8

9 ADAPTING AIR MILES TO EVOLVING REGIONAL LOCAL LIFESTYLES STATISTICS Shopping in Malls continues to dominate the lifestyle in the GCC Air Miles outlets are present in each of the top ten UAE malls, present in the top 5 malls in Bahrain and the top 9 malls in Qatar Air Miles partner choice facilitate this lifestyle and enable members easier and faster collection Mall locationed partners, including family food outlets. Online is evolving consumer shopping habits 65% go online during shopping process Highest penetration of online shoppers is in GCC Airline and Tourism Services leading online purchases Launched online travel booking in UAE Government and local utility suppliers calling for residents to Go Green Launch with Averda as recycling becomes part of lifestyle 9

10 REWARD VS. RECOGNITION IN THE REGION Global standards Brand engagement leads to more valuable members Each segment has different needs Price conscience and value seekers Engage in promotions and discount offers Emotional recognition and status Tiering Exclusivity Local standards Refined segmentation down to image styling by country Air Miles members within each country are segments with different needs, different partners and rewards Target different members with the same offer but different value add incentive Tiered status with different look and feel comms, different portfolio of rewards, exclusive tiered only events and services 10

11 PARTNERS ARE LOCALISED TO MEET COUNTRY SPECIFIC DEMAND Grocery Partner Predominant Western clients, with expat food selection, situated around expat residential areas Predominant local clients, situated around locals residential areas Fractured market Financial Partner Anchor partner, heavy regional presence, mix of local and expat members Rewards preference Flights (online and travel call centre) Shopping Vouchers (collection from Air Miles office) Low cost Electronics (displayed on web. However, redeemed via call centre) 11

12 ADAPTING PROPOSITION AGAINST CHANGING LEGISLATION Adapting promotions and planning campaigns Personalisation of SMS in Qatar not possible - challenging suppliers to provide a solution Promotions need licences from the government sourced by authorised agencies, a % needing to be in Arabic regardless of whether your client focus is Arabic: Revisited the need for such major ATL campaigns and reviewing company trade licence Postal system unreliable: Moved to 100% ecomms, instant packs introduced to save time and effort Reviewing value proposition when legislation changes Central Bank changes, like caps on banking in Qatar 12

13 ITS IMPORTANT TO HAVE A CLEAR DATA COLLECTION AND MAINTENANCE STRATEGY GCC has a large transient community (31% of GCC population are expats) Regularly updated to identify gone-aways Ensuring low rate of ghost accounts to maximise value from CRM Quicker routes to engagement and collection velocity Recent launch of instant packs across UAE, Qatar and Bahrain Tracking Mechanic Review Building trustworthy relationships with members and partners TACT 13

14 1) Stay front of wallet 6) Tomorrows World 2) Education to Engagement 6 lessons learnt 5) Staying Smart 3) Be flexible 4) Collect what you need

15 Lesson 1 STAY FRONT OF WALLET CHALLENGE Multiple schemes at Coalition outlets Lack of DATA enabled management AIR MILES ACTION Removing Partners with conflicting loyalty programmes Removal of Partners that are unable to be customer centric unless deemed valuable by members Minimum store point of sale requirements built into contract

16 Lesson 2 EDUCATION TO ENGAGEMENT CHALLENGE Consumers don t always understand how coalitions work in the region AIR MILES ACTION Robust customer on-boarding across Coalition countries to educate members and promote ideal behaviour in the first months of their lifecycle Upfront conversation with new members to understand their requirements to learn how to educate them better More partner education top to bottom from white papers to increased Front line training

17 Lesson 3 BE FLEXIBLE CHALLENGE Different countries = different communication issues and different government policies AIR MILES ACTION Challenged local suppliers to find us solutions Moved to 100% ecomms Reviewed opt out policy to ensure members all receive e-statements Replaced mass ATL to targeted ATL

18 Lesson 4 COLLECT WHAT YOU NEED AIR MILES ACTION Reward members for giving data - incentivized surveys CHALLENGE Collecting robust data across Air Miles countries that can be leveraged for communications and analytics Strict non selling of data policy Demonstrate the power of data to member and partner: relevant offers and benefits validation to partners

19 Lesson 5 STAYING SMART CHALLENGE Stop partners consistently repeating old ATL campaigns & instead Drive data ability AIR MILES ACTION Continuous test and learn adopted with UAE and Qatar partners to improve timing, content and frequency of Air Miles communications Increased Analytics team size and quality and built international bridges to UK and now Canada

20 Lesson 6 TOMORROW S WORLD CHALLENGE Quickly Using SOMO platforms to stay relevant to MENA members AIR MILES ACTION Thought leadership in a diverse changing demographic Research for member segments using each channels Which channel drives engagement

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22 WHAT APPROACH TO REGIONAL VS LOCAL ISSUES THAT AIR MILES HAS ADAPTED COULD YOU USE? Proposition Rewards Legislation Partners Member Data 22

23 THANK YOU Evert de Boer Visit aimia.com/airlineloyalty for more information