Market and Customer Management Customer Loyalty 4 Cards

Market and Customer Management - Customer Loyalty 4. Cards 1 Offering 8 Communication 7 Finance 2 Processes Key topics of the programme 6 Structure Frequently asked questions: 3 Call Center 4 Cards 5 Information Technology What’s the difference between a magnetic stripe card and a smart card if it is used as a loyalty card? What different cards are available in the telecommunication industries? How can this cards be used as an added value for loyalty cards? 05 Loyalty Cards. ppt 1

Market and Customer Management - Customer Loyalty 8 1 2 7 4. Cards 6 The difference between a loyalty card with magnetic stripe and a loyalty smart card Magnetic Stripe Card All customer data are stored centrally incl. the point account 3 5 4 Smart Card All data are stored in a central IT system All data relevant for customer loyalty are stored in the central IT System Offline transfer Online transfer POS terminal offline transfer ______________________________ Loyalty card ______________________________ ______________________________ n The customer data are managed online from a central IT-System. n The identification of the customer is made online via the magnetic stripe on the card (and PIN if necessary) n The account information (point account, etc. ) is stored on the central server and transferred online to the POS Point account is on the chip itself n The relevant customer information is stored in a central IT-System n Data relevant for customer loyalty is stored in the POS terminal and per upload transferred to the central ITSystem n The identification of the customer is made offline with a barcode or magnetic stripe. The PIN is stored on the chip of the card n The point account is managed from the chip of the card 05 Loyalty Cards. ppt 2

Market and Customer Management - Customer Loyalty 8 1 2 7 4. Cards 6 Possible combination of loyalty cards with cards in the telecommunication industry 3 5 A good loyalty card provides added value n A good loyalty card provides added value and should not just be a white plastic card with the name and account number on it (e. g. in combination with other cards like credit or debit cards) Possible combination of a loyalty card with other cards in the telco industry n The following table shows the available cards in the telecommunication industry that can be used in combination with a loyalty card 05 Loyalty Cards. ppt 4 3

Market and Customer Management - Customer Loyalty 8 1 2 7 4. Cards 6 An other example - Lufthansa Frequent Traveller Card 3 5 4 Approach n In order to reduce administrative costs and to offering greater convenience to the consumer by streamlining reservation, check-in and boarding procedures as Lufthansa offers to their Frequent Traveller and Senator Card holders over their affiliate Lufthansa Airplus following card options: n ETIX: Electronic check-in and seat reservation, for this the card is equipped with a contact less chip. n Credit card: Processed by Airplus (separate cards for VISA and Euro/Mastercard), for this purpose the cards are equipped with a magnetic stripe. n Telephone card: With these cards customers can use credit card phone boxes worldwide. In Germany, card holders can use more than 90. 000 phone boxes of Deutsche Telekom enabled by an additional contact chip. Further more these cards can be equipped with a calling card function provided by Executive Tele. Card which requires no hardware. All calls and the basic fee are charged to the credit card bill. n The latter two were introduced in order to increase user acceptance by making the card multifunctional. Therefore Lufthansa adopted a hybrid card (dedicated technologies for each function, see above). n The entire card processing is being conducted by Airplus (a company specialised on credit cards in the air travel industry). Results n Lufthansa surveys indicate general satisfaction with the pilot smart-card project. n Customers were least impressed with the multi functionality associated with the card‘s different features. n Successfully implementing a multifunction card has been a problem for several proposed cards schemes. Lufthansa avoided the majority of these problems by using a hybrid card approach. n Finally, the scheme can be evaluated as a success, even though the implementation is relatively unambitious technologically (as opposed to a integrated card approach). Source: Price Waterhouse, Gartner Group, Jan. 1997 05 Loyalty Cards. ppt 4