LOYALT Y C ARD

PROGRAM

LOAYLT Y

uality
Customer
Management

ABSTRACT
LOYALT Y PROGRAM

2010

TC UE
by

Aleksandra

Kostadinovic

Simeon

Konsalting

Loyalty programs are

system tools that manage
the relations companycustomer, through
business strategies, which
achieve and maintain
long-term and profitable
relationships with
customers.

Loyalty
program
Better conditions for consumers
Beter conditions for brands&retailers
The trend of complexity and
expansion of supply in the market
for goods and services, as well as a
large range of different retail stores
(from shopping malls, trade centres
and small shops) points to the need
for building bridges between the
bidder and the loyalty of consumers.
On the one hand, it is necessary
to upgrade the motives of the
consumer in order to continuously
meet the needs of the same supplier.
Also, they retail chains and facilities,
which first implemented the system
consistently nurturing loyal
SPENDING
SEGMENTS:

customers, will have as a result of

the trend of increasing sales and
growing customer base.
Price, quality and image of a
particular product or service, is not a
sufficient argument for consumers.
It is necessary, with the
aforementioned qualities, and
implementation a systematic
program, to reward loyal
customers. In order to achieve
loyalty, it is necessary that the
consumer gets a special place , a
privilege, because they consume the
product or service.

HRANA I PIE
FUN
HEALTH

FASHION
BEAUTY
TRAVEL

Such mutual interface quality

achieved Loyalty programs that
reward users for loyalty shown.

LOYALTY PROGRAM
Systematic reward for loyal
customers
Increase sales and customer base
market, due to the increase of users
and spanding per user and the best
customer segment

SPORT

CULTURE

HOUSE & DECORATION

LIVING
ETC

LOYALT Y PROGRAM
SERBIA
CONSUMER LOYALTY CARD
Serbian market is becoming especially topical for the
implementation of loyalty program.
Consumers are not able to establish the continuity of
loyalty to certain brands and retail structures, because the
expansion in a short period of time appear always new, and
part of the old disappear.
Consumer Card TC "USCE", the loyalty program, it would
have a mission to gather referral partners (brands) that follow
the structure of real consumer spending in Serbia. In this case,
the loyalty program would have great potential for clustering
and customer retention within your system.

SHARE OF SPANDING - PARTNERS IN

LOYALTY PROGRAM
TC "USCE" has an ideal structure for the setting of Loyalty.
Group brands and sales salons that are positioned in the
shopping center of a major segment of the buying interest of
consumers. Given that in Serbia there are no loyalty programs
that systematically rewarded his loyalty to customers and
determination to stay true to a certain brand loyalty to this
program met with great response from customers TC "USCE"
TC "Confluence" has been designed and trendy turn in
relation to the purchase and customers, so it is logical that new
trends start from the same center: NEW LOYALTY CARD.

Partners

THE REST

FOOD

Food & Beverage

Home
Oil
Fashion Clothing
House Decoration
Culture
Education
Travel
Communication
The rest

& BEVARAGE

19%
40%

Partnes:

3%
5%
3%
3%
7%

TURIST
AGENCY

Partners:

5% 3%

CINEMA
PartnerS:
HOME
CENTRES

PartnerS:
FASHION

12%

Loyalty Program Elements

uality
Customer
Management

CONSUMER AWARDING SYSTEMS

POINTS:
Partners who each purchase rewards
points that represent the value (eg. 1
point = 1 din).
DISCOUNTS:
Partners who have specific products for
the cardholder's loyalty program,
provide additional discounts.
GIFTS:
Partners at which points can be
replaced for certain products but by
buying them with points gained
PRIVILEGES:
The system privilege is unaudited and
has a large amplitude that starts direct,
personalized contact with individual
consumers to special offers, the
possibility of doubling the value of
points, special methods of purchase,
reservations and so on.

CLUB
Club Consumer Loyalty
Program has the mission of
spreading the benefits to
consumers.
LOYALTY CARD
Identification Loyalty Card
which on the POS of benefit
and allows the identification
and award for the customers.
SALES AND SERVICE POSITIONS
Clearly marked places, which,
as partners in the club
guaranteed benefits provided
to consumers.

CSI
CUSTOMER SATISFACTION INDEX
unit of measure customer
satisfaction and control
instrument as it offers in relation
to the expectations of consumers.
On the competitive market, where
companies are fighting for the
consumer segments, CSI is
considered a key element of
business strategy.

Loyalty Programs
KNOWN IN THE
WORLD

PROGRAM

EFFICIENCY

No.1

TESCO

53% HOUSEHOLDS

Tesco

GREAT BRITAIN

300% increase in
profits since the
introduction of
loyalty program
(1997)

COUNTRY

NECTAR

56% HOUSEHOLDS

GREAT BRITAIN

PAYBACK

67% HOUSEHOLDS

GERMANY

MALINA

38% HOUSEHOLDS

RUSSIA

UPROMISE
USA

36% domainstva

Customer Experience Methodology

Customer Experience is an integrated method of
communication and information center methodology study raises
CONSUMER EXPERIENCE as a primary measure for the
development of loyalty program. The main focus is properly
placed loyalty program is a consumer research experience (before,
during and after purchase). This methodological approach allows
the proper placement of rewarding loyal customers and the
highest level of understanding their buying behavior, priorities,
preferences, expectations, and (dis) satisfaction.
The main objectives of such a loyalty program are:
Increase profitability, and the number of loyal consumers for the
market segment offers products and services
Rewarding and providing restitution coefficient of loyal customers
(or return value), according to the criteria and consumer loyalty
(repeat purchases), etc.

Customer Segmentation

Luxury Furniture has a different segmentation of customers of

supermarkets, such as teenage fashion chain, does not belong to
the same segment as a luxury shoe store.).
Segmentation is the process of separation of groups of consumers
according to common characteristics and define the instruments
for the additional motivation of each segment according to its
features.

Restitution Fee
Restitution fee is the degree of value that is returned loyal
customer because the value invested in a particular market by
purchasing entity. Some structures of market entities (Partners in
Loyalty Program) can provide a lower level of return (eg
supermarket), while some may approve a higher level of return
(or a chain of fashion salon furniture).
The loyalty program is a good reason for the introduction
of gift cards at the level of TC "USCE"

Consumers is incorrectly treated as a monolithic group. They, in

particular levels of consumption, habits, lifestyles, expectations
are belonging to different segments of consumers. It is therefore
essential to monitor consumer segments and systems to benefit
the Loyalty Program designed to each customer segment. (For ex.

An example of possible realization of points per year

Partner Profile

Monthly spending

Yearly spending

Restitution fee

No.of points

Supermarket

200 euro

2400 euro

3%

72 points - euro

HOME
CENTER

1000 euro

15%

150 points - euro

FASHION
CLOTHING

50 euro

600 euro

15%

90 points - euro

TRAVEL AGENCY

1000 euro

15%

150 points - euro

TOTAL:

462 points - euro

Functional model
Loyalty Program model must be efficient, rich in content and functionally simple. Customer login system to the Club
loyalty program and registration must be provided at each retail site that belongs to the structure of the Partners Program.
Information and communication system must ensure a secure implementation of the two main objectives:
Consumers have simply exercised their rights Loyalty Program (user friendly)
Partners in Loyalty Program must receive a simple model of a program, and a system for effective implementation.

Loyalty Program Marketing Campaing

Loyalty program requires a serious project Promotions Loyalty Program. The campaign to animate as many consumers in
Belgrade and Serbia, in order to start a program of as many members, that issued the card loyalty program.

Organization
Indicators from the global market suggests that the success of loyalty program depends on effective and functional
organization.

HEAD TEAM

DATA BASE
TEAM

MARKETING
COMMUNICATION
TEAM

IT
TEAM

FINANCE&
ADMINISTRATION

Aleksandra Kostadinovi, Simeon konsalting

F ields of Exper tise:
Integrated Marketing Communication
Customer Experience Management (CRM & Loyalty Program)
Strategic Management
The most significant Projects (as a Project Director):
West Ritham Music Festival, Belgrade 1999
Davidof f Award for the Contemporar y Theatre Expressions, Belgrade, 1999
Davidof f Concer t Season, Belgrade, 2000
Microsof t Synergy, Belgrade, 2001
Microsof t XP Launching, Belgrade, 2001
IBM Forum, Belgrade, 2001
Cisco Avvid Live on Tour, Belgrade, 2001
West McLaren Mercedes, Serbia, 1999, 2000
Telekom Srbija, Loyalty Program, 2003-2008
Government of Republic of Serbia, 100 Investment Projects - Zoran ini, 2001
Government of Republic of Serbia, Green Card, 2001
Banca Intesa, Reality Show Transforma ,R T S1, 2005
mt:s, mt:s club, 2003 - 2008
etc.