Rewards program of a leading petroleum corporation
Company
The multinational oil, natural gas and chemicals company has offices in 100 countries and more than 100,000 employees worldwide.
Objectives
The company had placed the operation of its regional rewards programs into the hands of a number of service providers across Europe. The enormous management cost, the lost economies of scale and an overall inconsistency in the quality of customer service and logistics services forced the company to reconsider its system and centralize its program. The corporation was particularly interested in establishing a multi-language service centre, variable online marketing and a central rewards program management system for its European schemes.
arvato has been working for the client since 2003, servicing its bonus program for Europe in various capacities. arvato operates a multilingual service centre in Turkey, Germany and UK with the help of a central IT system. It also handles the company’s sourcing and logistics for more than 250 rewards in 14 countries and coordinates 45 different partners and suppliers.
Solution
- IT system for logistics support
- Professional end customer service through trained call center agents in 11 different languages
- Comprehensive data capturing and data management
- Restructuring of reward portfolio and reduction of rewards from 700 + items to 250 based on client specific marketing objectives
- Optimized demand planning and country-compliant rewards sourcing
- Rewards shipping throughout Europe
- Analysis and reporting
Success
Thanks to the support of CRM und Loyalty Solutions, the client was able to expand its program to become the third largest loyalty program in Germany. The success of the partnership is also proven by the optimized sourcing conditions achieved through bundling the European procurement volumes (economies of scale) and an optimized supplier management system. We were able to standardize a number of processes and procedures by taking over the management of several program related services using a proven IT structure. This has led to a considerable reduction in complexity.
Cross-border consistency in quality is also ensured, and thus helps to create a program robust enough to handle continuously growing numbers of participants, an increase in sales per customer and a rise in the redemption rate. Moreover reliable on-schedule dispatch and delivery has significantly increased customer satisfaction.
arvato's integrative approach to rewards sourcing led to better purchasing conditions for the client and an overall reduction in costs. The new assortment of reward items, streamlined based on customer information and focusing on greater appeal, generated higher redemption rates and a measurable increase in customer satisfaction. The client has benefited enormously from the international service centre, which it has been using for its premium rewards program since 2006. Subsequently, a real-time success tracking system helps the client to constantly monitor the program’s performance.
