Loyalty Program Presentation

Transcription

1 Smart Smart Smart Smart Shopper Shopper Shopper Shopper Loyalty Program Presentation Smart Smart Smart Smart Shopper Shopper Shopper Shopper

2 Loyalty Programs Some Facts Studies show businesses can increase revenues by approximately 50% by retaining only 5% of their customers. Remember the 80/20 rule? Consumer spending is 6% higher for companies with loyalty programs. Nearly 75% of shoppers belong to at least one loyalty program. The average household has 12 loyalty memberships, but uses only 1 or 2 of them. Loyalty cards increase frequency of visits by more than 25% When paired with gift cards, loyalty programs can increase sales by over 70% When paired with a gift program, loyalty programs can increase frequency by more than 35%

3 Loyalty Programs Some Facts When paired with a gift program, loyalty programs can increase frequency by more than 35% Advanced Loyalty programs can include rewards for things such as: Rewards per amount spent Rewards based on frequency, number of purchases or number of visits Rewards based on exceeding a certain amount spent. Rewards for paying via credit cards or cash, etc New member or product bonuses Random awards such as at certain transaction number

4 Middle East Loyalty Cards Many small profile cards have been issued widely due to the close nature of these issuers, the network did not grow well A leading UAE bank has deployed an EXPENSIVE loyalty program but, forgot the real success in loyalty is behind two key elements; Where can points be earned Where can points be burned If you close your customers to a certain network, area or shopping chain then customers simply do not carry the extra baggage (loyalty card) in their wallet, this is because they are not sure whether it is accepted To our knowledge, there is no well & widely accepted loyalty program anywhere in GCC countries All existing loyalty cards are just a flat point cards, does not encourage customer to return or even to spend more.

5 What is Smart Shopper Smart Shopper A state-of-art Secure Loyalty Program using Smart Card. Smart Shopper Smart Shopper is a stand-alone and off-line Loyalty Application Unlimited number of Loyalty Customers. Up to 50 Merchants (each with unlimited number of outlets). Smart Shopper does not require any computers and can work off-line worldwide. Earned/Redeem points are stored in smart card for each merchant. Earning / Burning - Rules can be loaded on to the terminal during installation.

6 Shopper Shopper Shopper Shopper Shopper Shopper Shopper Shopper Smart Smart Smart Smart Smart Smart Smart Smart What do you need? + = Smart Smart Smart Smart Shopper Shopper Shopper Shopper + = Smart Smart Smart Smart Shopper Shopper Shopper Shopper

7 ewallets - Virtual Electronic Wallets Our basic smart card proposition can support up to 50 merchants (Carrefour is one merchant) A well fledged loyalty program will not need more than 3 merchants such as; 1. Points earned against department store purchases, (These of course can be redeemed for a higher value) 2. Points earned against nominal purchases, eg; Supermarket purchase (These can be redeemed at a different rate, and redemption areas can be controlled) 3. Quick points earned against CASH purchases on fuel or something provided the participant (The fuel co.) pays off parts of the value earned, and the rules here can be set to redeem it against fuel only, etc, etc

8 Merchant s Wide Range of Criteria Each merchants can load their own Rules into the terminals as : Earn Points Against Purchase Purchase Ceiling Exceeding Points Visit Frequency Bonus Points Happy Hour Bonus Payment Type Bonus Points Surprise Points Gift Points

9 Example Rules Earning Points Earn Points Against Purchase Set a point value to earn against a purchase (1 SR = 1 pt, for example) Number of points per merchant can be calculated based on terminal configuration at each merchant, for example Supermarket may grant customer 1 point for each SR.10 purchase where Department Store may grant customer 1 point for each SR.1 purchased. Purchase Ceiling Exceeding Points When customer purchases above a set forth value (Say 500), provide N number of bonus points Visit Frequency Bonus Points If the customer visits this particular merchant more than twice a week, provide N number of points

10 Example Rules Earning Points Happy Hour Bonus Additional bonus points will be earned if purchase occurred during the Happy Hours. Merchants can setup the happy hours during terminal configuration in way to encourage customer to visit their store outside the peak hours. Payment Type Bonus Points Additional bonus point will be earned if payment type is Cash or Credit Card Merchant can select which payment type will earn bonus points. Surprise Points Setting a configuration on merchant terminal to provide extra points every N number of transactions. Gift Points Setting a configuration on merchant terminal to provide gift points at customer joining the loyalty program.

11 ewallets No limits to the card When the concept of ewallet is applied, there is no defined limits of growing your loyalty program There is simply nothing hard-coded to which you are stuck with for your entire program life Dynamicity in the program makes customers feel more interesting to carry the Extra Baggage which is the loyalty card

12 Redemption Rules Many rules can be set at terminal level for redemption as : Points balance can be redeem for cash Points balance can be redeem for gift items Points balance can be redeem for purchase value Etc, etc

13 To Summarize Loyalty isn't created by a program it can at best strengthen it. Loyalty is not about short term rewards.it is about end-to-end customer experience with your products / services Companies need to have a enterprise wide loyalty strategy backed by customer centric processes to deliver value. Co branded programs work --- Ensure you get the value proposition right Loyalty has to be earned..its hard work.but at the end you have a profitable customer

14 Thank you Smart Smart Smart Smart Shopper Shopper Shopper Shopper