[ ACQU ISITION ]
ATTRACTING
NEW BUSINESS
CAN LOYALTY AND REWARDS PROGRAMMES DELIVER CUSTOMER ACQUISITION
BENEFITS? TAMARA OBERHOLSTER INVESTIGATES.
A
ccording to Dharmesh Bhana, head
of loyalty and rewards at Nedbank,
loyalty programmes are a good
business practice because they help
build and deepen relationships
with customers.
If these programmes are implemented
strategically, Bhana says, businesses will reap
significant benefits, because (in most cases) the
cost of acquiring new customers far outweighs
the cost of retaining them. One of the ripple
effects of successful programmes is that they
result in more business, whether through
upselling to existing customers or attracting
new ones.
NEW BUSINESS OPPORTUNITIES
WITH EXISTING CLIENTS
Nico-Louis Minnie, head of Multiply Rewards
(MMI Group’s wellness and rewards programme),
says consumers in South Africa now expect
rewards across all lines of business.
“However, this is not the main factor driving the
business case of rewards programmes,” he says.
“Rewards programmes allow insurers to manage
their underlying risks, but most importantly in the
current economic climate, it helps them to retain
clients and business.”
Multiply, says Minnie, is the single most
important initiative in the Momentum group. “It
has a direct impact on our bottom line,” he explains.
“While customer acquisition is part of our Multiply
strategy, we are more focused on our existing
clients to get them buying into our other value
propositions. By and large, Multiply members have
double the number of products that non-Multiply
members have with the MMI Group. Hence, by
demonstrating tangible value through Multiply, we
grow our existing client base. ›
R E WA R D S & L O YA LT Y S A
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