Loyalty Programs

Part
01
of three
Part
01

Australia Loyalty Programs

Woolworths Rewards and Qantas Frequent Flyer are some examples of best in class loyalty programs in Australia because of their high customer engagement and the success of each of these programs.

Australia Loyalty Programs

1. WOOLWORTHS REWARDS: RETAIL INDUSTRY

HOW THE PROGRAM IS ENGAGING WITH CUSTOMERS:

MECHANISMS USED FOR THAT ENGAGEMENT:

EXAMPLES OF THAT ENGAGEMENT:

WHY THIS IS BEST IN CLASS:

  • Woolsworth rewards email campaign had a 16% increase of email open rate and a net promoter score of 10%.
  • The company’s hub program had over 2 million customer interactions, and have attributed to over 60,000 new member sign ups.
  • According to Woolsworth, by increasing personalized engagement with their customers they had an increase in Rewards members, The number of Rewards members grew to 10.9 million at the end of June 2018.
  • Woolsworth Rewards placed second place in the Top 10 Unprompted Most Mentioned Programs in 2017, with 13% of the votes.


2. QANTAS FREQUENT FLYER: TRAVEL INDUSTRY

HOW THE PROGRAM IS ENGAGING WITH CUSTOMERS:

  • Qantas Frequent Flyer partnered with BWM Dentsu Sydney to create a loyalty program with the message tagline of ‘Why Not?
  • The ‘Why Not?’ engagement avenues include unique rewards and benefits that can be unlocked as a member of the Qantas Frequent Flyer program.
  • Qantas has also partnered with over 200 different companies such as major banks, supermarkets, and insurance companies that buy frequent flyer points from Qantas, which can be used to reward their own customers.

MECHANISMS USED FOR THAT ENGAGEMENT:

  • Qantas Frequent Flyer uses digital banner ads, TV ads, outdoor activities, and social media to engage with its customers.
  • The company also uses YouTube for its videos ads.

EXAMPLES OF THAT ENGAGEMENT:

WHY THIS IS BEST IN CLASS:

  • In 2016, 4.9 million seats were purchased with points from the program.
  • The Qantas Frequent Flyer program is one of the leading online loyalty redemption programs in Australia with over $100 million in value redeemed each year.
  • The Qantas Frequent Flyer program has helped the company to increase its revenue by more than $400 million a year since its launch.


Additional Findings:

Velocity Frequent Flyer: Travel industry

How the program is engaging with customers:

  • The company is engaging its customers with offers and promotions using the tagline of #Earnbassadors.
  • The engagement was aimed to educate members of the Velocity program about status credits.

Mechanisms used for that engagement:

Examples of that engagement:

Why this is best in class:

The company’s Earnbassadors loyalty program saw a 484.5% increase in positive sentiment and earned 7.6 million in cumulative reach.



Part
02
of three
Part
02

India Loyalty Programs

Three case studies of best-in-class loyalty programs in India are OYO's Wizard, Make My Trip's MMT Black Loyalty, and Future Group's loyalty programs in retail. Below the case studies are provided.

Case study#1: OYO's loyalty program; category: travel

CUSTOMER ENGAGEMENT

HOW CUSTOMER ENGAGEMENT TAKES PLACE
  • It asks customers to become members and pay an early-bird membership price of INR 99. Membership is expected to provide "surprising benefits" to those who enroll.
  • The company is posing the program as a "one of a kind" benefit membership program that is supposed to deepen and strengthen the relationship with the customer by providing guaranteed discounts, benefits, and upgrades.
  • The messaging tagline used in OYO Wizard marketing materials is "A Smarter Way to OYO Your Way Around the World".

MECHANISMS FOR ENGAGEMENT
  • OYO posts audio-visual ads on their verified social media pages asking people to register for the loyalty program. Each video posted on social media has the hashtag #OYOWizard mentioned in its description.
  • Visuals of customer engagement, as posted on social media handles, also include images declaring winners of various contests meant for Wizard members.
  • OYO is also mentioned for their loyalty program on sites which post news on such deals, such as Deal Trendz.
  • It also uses third-party coupon aggregation sites, such as Coupon Dunia, to mention its loyalty schemes.

CaSe Study#2: Make MyTrip's MMT Black Loyalty program; category: travel

CUSTOMER ENGAGEMENT

HOW CUSTOMER ENGAGEMENT TAKES PLACE
  • The program's tagline is "The Most Rewarding Loyalty Program, Ever!"
  • The program engages customers by, among others, offering its members rewards such as stays in Oberoi and Trident Hotels and vouchers for Lenovo, Kalyan Jewelers, and Urban Ladder.
  • It also engages through more premium loyalty programs of the same kind, such as MMT Double BLACK which offers 100% free cancellations on 10 domestic hotel and flight bookings

MECHANISMS FOR ENGAGEMENT
  • The primary avenue of connecting with consumers is the company website.
  • The company has formulated brand partnerships across channels as well. For example, it has entered into a partnership with the OTT platform ALTBalaji, which allows MMT Black subscribers access to ALTBalaji’s content library of Hindi Original Exclusives.
  • The company is also using e-commerce platforms to sell and promote Make My Trip Double Black — Membership gift cards.

CaSe Study#3: Future group's loyalty program; category: retail

CUSTOMER ENGAGEMENT
  • The loyalty program of Future Group is considered to best-in-class as it has managed to subscribe 30 million members.
  • In terms of customer engagement, members on paid loyalty platforms visit the company on average 18 times a year.

HOW CUSTOMER ENGAGEMENT TAKES PLACE
  • The company uses several loyalty programs to engage with its vast base of customers. These programs include Big Bazaar Profit Club, T24 Mobile Program, and the recently introduced Easyday Savings Club and Future Pay mobile wallet.
  • Through these programs, the company engages in the segmented targeting of its audience. It uses certain promotions for specific groups of loyalty customers, which allows members to fully benefit from their membership. According to the company, this mode of engagement helps to achieve higher visits and higher sales.

MECHANISMS FOR ENGAGEMENT
  • Through these loyalty programs, the company aims to decrease its dependency on mass media advertising. It prefers to use other channels such as its own loyalty platforms and social media for this purpose.
  • The company uses social media and digital channels to implement its "online-to-offline model" as well.
  • The company used Twitter campaigns for a wide range of products and decreased the price of products with every retweet. This, according to the company, generated a huge response from its customers.



Part
03
of three
Part
03

Mexico Loyalty Programs

Two case studies of best in class loyalty programs in Mexico are Club Premier by Aeromexico and Savings Wallet by Farmacias del Ahorro.

Case Study#1 : Club Premier by Aeromexico

  • Club Premier, from airline Aeromexico has more than 4 million members. Each month, more than 20,000 award tickets are redeemed.
  • Members are encouraged to engage with the program as there are more than 100 affiliated companies that members can earn points with. Some examples include affiliate airlines, cruise lines, Hilton Hotels, Hyatt Hotels, Hertz car rental and more.
  • Club Premier members with co-branded bank cards also accumulate points.
  • When members accumulate enough points, they can exchange them for award tickets with the airline, or other rewards like cruises.
  • Club Premier uses several digital and social channels to engage with customers. They have Facebook, Twitter, Instagram and both Android and Apple apps.

Case Study#2 : Savings Wallet (monedero del ahorro) by farmacias del ahorro

  • This loyalty program from major Mexican pharmacy chain, Farmacias del Ahorro, encompasses more than 1,300 branches across the country.
  • There are more than 15 million registered members.
  • Customers receive credit when making a purchase at the pharmacy. Some incentives include subsequent free products, coupons, access to promotions or cashback based on the individual's purchase history.
  • There are no limits, so as long as a member keeps purchasing, they will receive incentives.
  • Monedero del Ahorro promotes its loyalty program through social media like these Facebook posts and on Twitter.

Research strategy

We selected the above two case studies based on the number of customers, or members, compared to a variety of loyalty programs in Mexico. We strived to keep our selection diverse, offering one example from the travel industry and one example from the retail industry. These two were the most popular in terms of customers and press coverage.
Sources
Sources

From Part 01
Quotes
  • "RESULTS: The data has shown the technology is successful, attributing to a higher spend and scan rate and increased shopping frequency. In the first 12 months of deployment the Hubs have been set up in over 600 stores nationwide, have had over 2 million customer interactions, and have attributed to over 60,000 new member signups."
Quotes
  • "Since 2015, we have helped to re-engineer the Woolworths loyalty programme, Woolworths Rewards, to beat “Fly Buys” to lead loyalty in the Australian retail space. "
  • "We’ve delivered new marketing channels (and re-imagined existing ones), to market in new ways via email marketing, display advertising, web, point of sale and mobile marketing."
Quotes
  • "Qantas Frequent Flyer has launched a new campaign, developed in partnership with BWM Dentsu Sydney, to encourage its 11.8 million members to be spontaneous and ask ‘Why Not?’ use their Qantas Points to do something they’ve always dreamed of and treat themselves or a loved one."
Quotes
  • "Today Qantas has more than 200 "partners", which include the four major banks, supermarkets and insurance companies. These partners buy frequent flyer points from Qantas, which they can use to reward their own customers."
Quotes
  • "Earnbassadors achieved a 30% increase in revenue from more than 5,700 pieces of organic, authentic, member-made content. We saw a 484.5% increase in positive sentiment and earned 7.6 million in cumulative reach."
From Part 02
Quotes
  • "You’re cordially invited to step into the magical world of OYO Wizard. The largest membership program, #OYOWizard is your smarter way to OYO around. With surprising benefits awaiting you, watch the video to know more and become an #OYOWizard now, at an early bird price of ₹99 only. Limited period offer."
Quotes
  • "We’re looking for a magician. Well, more specifically, we’re looking for our millionth magician. Sign up for #OYOWizard today, and if you are Wizard #1,000,000 there’s lots of great things in store. Get your #OYO Wizard subscription now!"
Quotes
  • "MakeMyTrip, India’s largest online travel agency, narrowed its losses by using loyalty programs to encourage more repeat, high-value bookings and by expanding into profitable intercity bus ticketing."
  • "For every $100 the company earns, it spends $87 in marketing — a perilous level that makes profitability elusive. Much of that marketing expense was for offering consumers discounts for hotels and brand advertisements."
  • "The MakeMyTrip Group continues to invest in its loyalty program for its flagship brand. MMT Black Loyalty, which debuted in July 2017, lets travelers earn vouchers redeemable toward future bookings. More than 900,000 customers have joined, the company said Tuesday."
  • "The company also offers MMT Double Black, a luxury twist on the loyalty program, where consumers pay a fee in the style of Amazon Prime to get access to members-only benefits, such as no fee for canceling trips. About 33,000 people have enrolled so far in MMT Double Black, the company said."
  • "This past spring the company also introduced a loyalty program for its Goibibo brand. The program rewards people who contribute hotel reviews with credits that can be redeemed for future travel."
Quotes
  • " The benefits of MMTDoubleBLACK include 100% free cancellations of 10 domestic hotel and flight bookings, an exclusive invite to the MMT Black loyalty program, and a 24x7 hotline support. "
Quotes
  • "In the past three months, the firm has seen 73,000 and 16,000 registrations for MMT Black and MMT Double Black respectively. The renewed focus on the by-invitation-only loyalty programmes has helped MakeMyTrip go beyond discounts to improve repeat rates and shore up NPS (Net Promoter Score), a measure of customers' willingness to recommend a company's products. t"
  • ""While discounts play a role in trial and inducement, well-formulated programmes that deliver value to customers will drive repeat purchases," said Saujanya Shrivastava, chief marketing officer, MakeMyTrip. The company launched both the invite-only programmes in August this year. "
Quotes
  • "OTT platform ALTBalaji has entered into a partnership with MakeMyTrip for its rewards and loyalty programme – MMT Black, which offers exciting benefits across multiple categories."
  • "The collaboration allows MMT Black subscribers seamless access to ALTBalaji’s vast content library of Hindi Original Exclusives. Currently at 39 originals, ALTBalaji offers a formidable content library of originals across genres."
  • "MMTBlack is an invite-only programme of MakeMyTrip wherein members get to store unlimited money in their MyCash wallet. MMTBlack users can avail 1-year subscription of ALTBalaji by redeeming the MyCash in their wallet. On redemption, the users receive a voucher code, which they can enter on ALTBalaji’s android app, PWA and web versions, thus availing an entire year’s membership with no added costs."
Quotes
  • "Your Company today has access to consumer data of almost 30 million customers who are members of our loyalty programs. We are now steadily moving them to paid loyalty programs or membership model. These include Big Bazaar Profit Club, T24 mobile program and the newly introduced easyday Savings Club and Future Pay mobile wallet."
  • "Most of the customers on these paid loyalty platforms visit us on an average 18 times in a year."
  • "These loyalty programs are slowly allowing us to reduce our dependence on mass media advertising and moving on to conversations with customers through these loyalty platforms and social media. Social media and digital channels are also being used for our ‘online to offline model.’ For example, a series of Twitter campaigns for a wide range of products whose price go down on every retweet, generated a huge response from customers."
  • "The Company targets certain promotions to specific set of loyalty customers to give them benefit of being member of such program. This in turn results in higher frequency of visits by the member customer and higher sales."
  • "Our unique extensions in form of Future Pay wallet, Membership & Loyalty drive across formats are redefining our customer connect and increasing the relevance to customers by many folds. This would allow us to have deeper share of their consumption spends and bring in new customers in our fold with a higher consistency"
Quotes
  • "At Future Group, we believe in building long-lasting relationships with customers. We encourage repeat customer visits through our unique offers and special sale days."
  • "With PAYBACK, customers can shop, save and get rewarded. This program enables consumers to collect millions of points across online and offline partners – with just a single card. Customers can accumulate points across Future Group formats , thereby making “shopping rewarding”."
  • "Our formats Big Bazaar, Food Bazaar, Central, Home Town, Ezone, Brand Factory and Future Bazaar are a part of the PAYBACK Loyalty program."
From Part 03
Quotes
  • "The Aeromexico loyalty program , Club Premier, agreed to an alliance with the ICE Enterprise cruise booking management company, which aims to benefit between 10,000 and 15,000 air travelers."
  • "Karen Traviesa, travel manager of Club Premier, explained that as a result of the agreement, the Online Cruises platform was launched, in which airline travelers will be able to use their points to make cruises and earn points for navigating on these. ships with 44 maritime lines, such as Carnival Cruise Line, Royal Caribbean, Norwegian Cruise Line, Celebrity Cruises and others."
  • "John McCarthy, member of the board of directors of ICE, stressed that it is the only alliance in the world in this type and that with this, travelers will have more incentives to travel. " Cruises are the most aspirational sector there is, " he said in the presentation event of the Cruceros en Línea platform . Aeromexico has 51 percent of the shares of Club Premier, according to its latest results report."
Quotes
  • "Club Premier is a rewards program owned by PLM Premier, SAPI de CV. It is a company created by Grupo Aeroméxico (51% share) and AIMIA (49% stake). Club Premier, with more than 4 million members, is the leading coalition loyalty program in Mexico and the operator of the Frequent Traveler program of Aeromexico, the flagship airline of Mexico. Club Premier Members can accumulate Premier Points in more than 100 affiliated companies."
  • "In the field of travel, Premier Points can be accumulated with Aeromexico, SkyTeam Airlines, LAN, Copa Airlines and more, as well as with a large number of hotel chains (Camino Real, City Express, Fiesta Americana, Hilton, Hyatt, Marriott, Marquis , NH, Starwood and more) and leasing companies (Hertz, Budget, Avis and GreenMotion)."
  • "Club Premier offers co-branded bank cards: American Express Aeromexico, Santander Aeromexico and US Bank (USAAA), as well as an American Express Corporate card. Club Premier Members can transfer points from other loyalty programs to their Premier Club account to convert them into Premier Points. Premier Points can be redeemed at Aeromexico, SkyTeam ™ Airlines, as well as a wide variety of products and services."
  • "More than 20,000 Award Tickets are redeemed each month at Club Premier"
Quotes
  • "We currently have more than 1,300 branches and are increasing with presence in more than 80% of the national territory, generating more and more jobs through openings in new places, such as Ciudad Juarez and Tepic, now with the collaboration of Derma."
  • "We created the most successful loyalty program in Latin America, the Savings Wallet, through which our customers obtain electronic money for all their purchases, with which they can subsequently purchase any product in Farmacias del Ahorro. They also receive great benefits such as: free products, real money, promotions according to the purchase history and coupons focused on the interests of each client. It is important to remind them that for promotions you do not have to purchase everything in one visit as your purse registers and adds your purchases. For all this, it has become the favorite benefit card of all, and unlike other purses, it has no validity whatsoever."
  • "We have more than 15 million users of the Savings Wallet nationwide"
Quotes
  • "This is the loyalty program owned by Comercializadora Farmacéutica de Chiapas, SAPI de CV, as well as its subsidiaries, subsidiaries and companies belonging to the Farmacias del Ahorro Group (hereinafter referred to as "Farmacias del Ahorro"), which is solely responsible for to operate and administer it)."
  • "-Electronic Money: Consistent benefit in exchange and payment according to the promotions and electronically exercised in Savings Pharmacies and affiliated companies. -Redemption: Action to exchange gift pieces and electronic money for items according to current promotions agreed by the company. -Application and loyalty plans: Benefit within the Savings Wallet with dynamics of obtaining gift pieces."
  • "--Attachment and loyalty plans are linked to the client, so in case of transferring the electronic money from said plastic to a different one, the plans and the record of the promotion record or what is known as the benefit 100 + 100 and Free pieces, it is transferred to the customer's new plastic. --The system will indicate when your gift product should be delivered. --The granting of a gift product is subject to the availability of the item. --The granting of the gift product is linked to the current negotiations with the laboratories, which can be modified without prior notice depending on the expiration of the participating rule. --The promotion record is linked to the percentage of payment per article and is independent of the electronic money accumulated in the Savings Wallet, so its accumulation may differ from the redeemable balance."
Quotes
  • "Take advantage of this impressive promotion and free yourself from constipation with duphalac. Use your savings purse to keep accumulating electronic money. We are waiting!"
Quotes
  • "Arrived at pharmacies of saving your innovative facial sun for every type of skin that... doesn't irritate your eyes! Take it with 10 *% discount + 3 * months without interest. Don't forget to pass your savings purse! * minimum purchases of $ 1,500 on the same ticket. Ask for participating products."
Quotes
  • "Each month they serve approximately 850 thousand people and have assets of more than 15 million savings purses."