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Loyalty operations by Mind Map: Loyalty operations
5.0 stars - 1 reviews range from 0 to 5

Loyalty operations

Solution

Solution: Centralisation

Card system

Customer data

Exec don't understand why, Originally smart card was special, gut feeling is that it is a backward step to go to magnetic or barcode card

Quick fixes, Don't need to change card to centralise, Currently don't use Adcard to identify customer at till

Solution: Contact-less card

Transition could be an issue, From chip to contactless

£0.5 per card

Also looking at using mobiles for this function

Look to launch with a credit card company so costs can be shared

Solution: Magnetic card

Cheaper to buy

Don't need smart card for centralisation

New ideas

Idea: Improve redemption opportunities

Would make step change in value of card scheme

Idea: Want to move from 15m to 18m active members

Widen scheme to family membership

Would improve benefit to the wife

Customers don't understand 4 points per £1, but do believe it is more generous than competitors

Should use other customer databases to drive new membership

Idea: Desire to offer 121 deals at the till

Need to visit kiosk first to active this now

Parking lot

Is there a code of conduct issue for pharmacy data

This team will be "by the book"

Can't be seen to link offers to conditions explicitly

Can be done with clever wording!

Problems

Problem: Inconsistent customer offer across channels

E.g. Vouchers on-line v on card, different process (and tech)

Can be done but not straight forward

Has been done as one-off, but not captured as a repeatable process

Problem: Can't redeem points on-line

Top request from customers

Have to pick up points at a kiosk, when spending on-line, As points are physically on the card only, 5-day delay for points update, but used as a control so points issued only when product delivered (also could spend points twice)

However, is this driving increased foot-fall as have to visit store to gather points

Problem: Double dipping

Slows tills down

Replacement of card readers twice as high as elsewhere

365k hours wasted per year at till

400m till transactions per annum

Worse still if credit card fails (as process has to be repeated)

Problem: Different offer in ROI stores

No kiosks in ROI stores

Problem: No systemic control over customer contact

Three mailing on joining

Ad card, Parent and Health club communications potentially all at the same time (only if joined these all at the same time)

Problem: Can't age points on card

If points have an age and they are warned, this encourages spending of these points

Only of value cost-wise, in being able to write off value of unspent points

Points liability is a risk

Problem: There is a central copy of customer data but 24 hrs out of date

But not linked to till

Need a near real time communication to the store of this data

Problem: Cost of current cards too expensive

£0.25 per smart card

£0.08 per magnetic strip card

Replace 750k cards per year, Of 2m new cards

Problem: Can’t award points over the phone (e.g. for customer service)

Problem: Can’t be as versatile or tailored as a centralised card can be

Opportunities

Opportunity: Kiosk drives £21m increase in sales

Some customers like the experience of seeing the offers at the kiosk

This the downside of centralisation as kiosks would not be required

Only 5% of Adcard customers use Kiosks

Not profit but sales increase only

Opportunity: What do competitors, who centralise card points, do better?

Tailor the scheme to customers use

Opportunity: Identifying customer at the till

Targeted offers at POS

Expands redemption opportunities (airmiles or other partners)

Better policing of customers who "use" the system, Web sites that tell you how to do this

Opportunity: Managing the clubs more effectively

Decrease till time (saves staff having to spend time selling clubs)

Potential store staff savings, But store staff cheaper

But DM communications are happening anyway

Selection of customers for clubs is not done via analysis of what they spend

Opportunity: Contactless card

Speed up transaction

Customer expectation

Improves longevity of card readers

Reliability supposed to be better

Business case not good short term, Effectively similar to magnetic card but costs currently 5 times per card

Opportunity: Combine staff and adcard

Cost saving on managing staff card

May be issues with staff not wanting company to know some data on their spending e.g. pregnancy tests

New node