New coalition loyalty scheme to launch in Kenya
A new coalition loyalty programme called R&R is to be launched in Kenya this month, with R&R points being issued for spend at local retailers such as BP Shell, Bunson Travel, DHL, and The Kikoy Co.
Other retail, telecommunications and financial services partners (points issuers) are expected to join the coalition by the end of 2005, and some 250,000 consumers are expected to become R&R members within the programme's first year of business.
Mag-stripes & bar-codes R&R, operated by Nairobi-based CRM consultancy Reward & Recognition Limited, will issue magnetic stripe, bar-coded cards to new members, and enrolment can be done at BP Shell outlets, as well as online and at targeted events in Nairobi. Back-office database management will be provided in the UK by Rewardlife (which, we note, currently shares the same web site as R&R Ltd).
Member centre Members can check R&R Points balances on the internet (through the programme's dedicated web site, via the R&R Helpdesk, via Safaricom SMS, or at various R&R Customer Contact Points that will be established in major retail centres across Kenya. Active members (those who actually use their cards) will also receive quarterly newsletters alongside their R&R Points statements.
Experience Adrian Wilcox, managing director for R&R, has much past experience in loyalty marketing, having previously managed both the British Airways and American Express loyalty programmes in the UK. Reward and Recognition has been developing the R&R programme over the past eighteen months, making good use of consumer research to make sure the programme offers enough value to Kenyan consumers.
Small market Although R&R does not aim to become as big as the more established coalition loyalty programmes around the world (such as Air Miles or Nectar), it still expects to add significant value to its members and partners alike. According to Wilcox, the loyalty card market in Kenya is still in its infancy and, although R&R might potentially only ever gain 1.5 million members in Kenya, such a total would still represent 90% of the programme's target audience. Of course, operating a smaller database may enable the programme to act more quickly and nimbly in providing consumer profiling, strategic marketing services, and CRM facilities for the partners.
Wilcox commented: "We are confident that the R&R programme will have a significant impact on our members' spending behaviour, and that our partners will benefit from incremental revenue and activity. The opportunities that will be created by our database and knowledge are already causing considerable interest in the local marketing scene. Kenya has a burgeoning middle-class and we look forward to being able to understand who these people are, and what value they represent to us and our partners."