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Loyalty Program Newsletter 2006 Issue
 

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Our Client - Emperor Group

Founded in 1942 as a retail of jewellery & watches shop, Emperor Group has now developed into a group of listed companies, consisting businesses ranging from entertainment, property, financial services, jewellery, catering, publishing, hotel to retailing. Recently, they have collaborated with IBM and our team to launch a new loyalty program for the whole Group, the Emperor Club. To understand why and how the Club is launched, we have interviewed Ms. Christina Ng, Manager of Public Affairs Department of the Emperor Group to share the Emperor's case.

What are the reasons to initiate your company to launch the loyalty program?

Emperor Group has variety of business units and each of them operates its own membership system and discounts card. Since there may have overlapped customers database within the same Group, so it has spent individual brand's resources in managing databases separately. Hence, the main purpose of the Emperor Club Membership Card is to unify all membership systems that under different business units of Emperor Group into one loyalty card. Every branch shares the centralized database for data storage and membership management.

Building brand awareness for the whole Emperor Group is another purpose of the new card. We adopt the membership cards for all our subsidiaries in the sense that customers are made known of the newly established Emperor Group brands. Due to the above initiatives, we have the idea of a Group-wise loyalty program.


There are many similar membership card systems in existing markets. Are there any unique features or attractive reward modules of your program over other competitors?

We believe the multi-businesses nature of Emperor Group contributes to the most unique feature of Emperor Club. Emperor Group has sufficient resources to develop synergy effects from different subsidiaries and create considerable noise and awareness to our program. With one card, members can enjoy discounts in variety of brands, ranging from sushi chain stores, furniture stores, hotels to high-end jewellery shops. Such compound benefits enjoyed in the Card definitely are our program's attractiveness.

Since Emperor Group comprises various business units ranging from high-class jewellery to popular sushi stores, what are the challenges in the design of loyalty program fitting the needs of different types of customers?

There are 3 main challenges in our program implementation. The first one is the issue of technical enhancement and integration. Different brands have own POS systems, so we need to integrate them into a centralized one. Until now, technical problems are time-consuming but solvable. Another challenge is the coordination of business units in designing the program. Different brands have different operation modes and business ideas. Thus, we need to reach a mutual understanding from different units towards the loyalty program, e.g. terms of use and design of cards. As mentioned above, our Group involves diverse industries and hence a wide customer base. The derived challenge is to design an appropriate card system for customers with different purchasing power.

Could you describe how Emperor Group runs the loyalty program and how to put members' information to good use?

Emperor Club Membership Card is a smart card with built-in chips and works with the card reader system. Membership is divided into 4 levels: Diamond, Platinum, Gold and Silver. Members can check their privileges enjoyed through the card reader and shop with discounts in the 8 Emperor Group brands over Hong Kong and Macau. In order to increase our Card attractiveness, we are planning to extend the card coverage to the Mainland and more brands in the near future. Towards the utilization of members' information, we understand database is important in the field of marketing. It stores members' information for data mining and understanding customer profiles. We will make use of the database to analyze the possibility of joint promotion. If there is an indication of purchasing habits across a few brands, we can carry out cross sales to enhance the Card's bargaining power and awareness.

As cost is involved in the program implementation, how would your company recover the expenses in commencing the membership program?

In fact, cost is not our big concern in implementing the loyalty program. Considering the long term cost, it is more cost effective to manage a united Group-wise card. Once we integrate different membership cards of our subsidiaries into one card, the Group can save the operating cost in managing membership database and promoting the membership programs for separate brands. Therefore, we believe the expenses used in this program can be outweighed.

What are your expectations towards changes and benefits brought by the loyalty program in the future?

Frankly speaking, there might not be a huge increase in sales volume after issuing the loyalty program shortly. Loyalty program is not regarded as sales-orientated at the beginning stage. Instead, we expect some intangible benefits at this moment, including enhanced brand image and awareness, strengthened customer loyalty and closer internal cooperation. These are the present targets for our program implementation.

Once we integrate different membership cards of our subsidiaries into one Emperor Card, the Group can save the operating cost in managing membership database and promoting the membership programs for separate brands.

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