Bonding with Business Associates

ELECTRICIANS LOYALTY PROGRAM

Business ecosystem

Purchase Cycle Company to

Consumer

Procure the products from the company and offer them to the multi-brand retail market

Run proprietary business offering multi-brand products through their stores

Located within the localities or electrical market shops

Drive product sales in close association with the local electricians to the customers

Work in association with the retailers

Electricians are key influencers as customer turns for an advice before making a purchase

Facilitate the fitments at end location

End user

Understanding the target audience

Our friendly Our friendly neighborhoodneighborhood

electricianelectrician

Belongs to middle income group:

Earns daily/contract

basis

Recognition is the key for him. His

loyalty is important for this business

He labours to meet customer’s

expectations. He is a testimony of

customer service

He is a reference point for the

customer while making a product

purchase

Presenting

• A Relationship program that : - Rewards electrician for being a brand ambassador for Philips

range of products

- Recognizes his efforts by maintaining an association with him, both at rational as well as at emotional levels

Program Proposition

The program would work on 3 levels

Rational Rewards

Point based loyalty program :• Linked to the sale of entire product range of

Modular Switches accessories • Member earns points on recommending or

purchase of Philips Modular switches • Points earned will automatically qualify for

attractive gifts at different slabs, which is relevant as well as aspirational to the category

• Complete tracking of points basis member passbook and gift redemption vouchers

• Retailer being the key custodian; endorses all transactions at his end

• Point value: Rs. 10 spend by the customer = 1 point, for

the member electrician

Recognition Special initiatives for the members and their families for their continued association with Philips

Philips Certificate Program: Training and certification program Training on handling electrical circuits

and products Endorsement through Philips branded

visiting cards and certificates that increases their net worth within their peer group and customers

Scholarships for Kids: Studying in Class X and XII that would

help them achieve success In life Recognition as cash rewards

Emotional & Soft Privileges

Establishing a emotional connect:

Accident Insurance Cover:• As a member of the program, they will

also get a free insurance cover of Rs 1 Lakh to ensure a safe and secure future their family

Health Camps • Quarterly health check-ups camps for

members and family Special day greetings • B’days and Anniversary wishes as well as

wishes on important festivals

How will the program work?

Key stages:

1. Program Registration 2. Program Enrollment 3. Points Earning & Reward claim 4. Program Milestones & Tracking5. Program Rewards 6. Program Backend Management

Registration Process of Registration for Electricians

• Electricians have to fill in the Profile form with the mandatory details • Personal, Contact details, Family details,

Interests and hobbies • Profile form to be signed and duly stamped by

the appointed retailer as mentioned in the profile form

• Profile form to be sent to the Program center by the retailer or the Philips FOS • On receiving the profile form the data

would be entered at the program center • Issuance of Temporary Passbook

• Issued post validation of the data; Temporary Passbook helps the electrician to record initial program transactions prior to enrolment

Enrolment Process of Enrollment for Electricians

• An electrician is enrolled in the program once he earns 1000 points through Rs. 10,000 worth of sale/recommendation

• He submits the Temporary Passbook to the program center

• A Membership kit along with welcome gift is sent to the electrician

Membership kit: • Contains- Welcome Letter, Program booklet,

Membership card, Member passbook, Welcome gift

• Explains complete program details along with details of program rewards

Points Earning Points Earning process1. The electrician records all the purchases

made on the Program Points page in the passbook and gets it signed and stamped by the retailer

2. The passbook has 2 copies, Member Copy and the Program Center Copy

3. Electrician tears the Program Center Copy and sends it back to the Program Center

Point Value: • 1 Point = Rs. 10 / - sale

Contd… Earning of points• Passbook capture

• Date, Details of products sold, Invoice value, Retailer stamp (validating that transaction has been done)

• The details received are entered in the CAMPAIGN MANAGEMENT MODULE and keep a track of the points earned basis the transaction details entered for each member

Points Redemption

• Once the Member reaches a particular milestone he can redeem the

gifts against the points earned• Redemption to takes place on a quarterly

basis• At each milestone there are 2 gifts option.

He can redeem only one gift at each milestone

Claiming of the gifts :• The member have to fill in the Gift Claim

Voucher attached with the program booklet

• The gift claim voucher should be signed and stamped by the appointed retailer and send it back to the Program Center .

Contd.. • Program Centre to validate the request through the CAMPAIGN

MANAGEMENT MODULE• Post Validation , the request would be sent

for further process • The chosen gift will reach the member

within 15 days of receipt of the Gift Claim Voucher

• The points of the member do not become zero after a gift collection in the program . So they can keep collecting gifts as they reach a particular milestones

.

Program Milestones

Levels Points earned15 372,00014 307,00013 250,00012 201,00011 160,00010 127,0009 99,0008 75,0007 55,0006 39,0005 27,0004 17,5003 10,0002 4,5001 1,000

There are total of 15 Milestones that the member can achieve over a period of time.

How to Track Points?

Member can easily keep a track of the pointsearned by following a simple process which is as follows: Members to register their mobile numbers by SMS e.g.

PHILIPS POINTS <SPACE> Membership Number to 56767

The SMSE server tags the mobile number against the members’ account no.

Each time an SMS with PHILIPS POINTS is sent to 56767 there after; the corresponding reply is received as:

o POINTS EARNED:XXXXX; REDEEMED:YYYYY as on date <Date of points update>

To facilitate the points information interaction with the SMSE server, an updated points statement would be extracted from the CAMPAIGN MANAGEMENT MODULE and uploaded on the SMSE server on a regular basis , for tracking on request

REWARDS CATALOGUE

Points earned Image Option1 Image Option2

372000 Philips 29 " TV with speaker

systems

Diamond and gold pendent

earring set

307000 Philips home theatre

0.8 ton window ac

250000 Philips 21" slim TV -

200 ltr. SINGLE DOOR

refrigerator .

201000 Nokia mobile phone Digital camera

Rewards Catalogue

**Images used are just Indicative and are not actual images

Points earned Image Option1 Image Option2

160000 6 kg semi auto

washing machine

High end branded wrist

watch

127000 Philips mixer & grinder

48 pc dinner Set

99000 Philips DVD player

Premium quality

cordless phone

75000Philips music

system

Avon classic bicycle

55000 Philips toaster Table lamp

39000 Philips steam iron

Drilling machine

Rewards Catalogue

**Images used are just Indicative and are not actual images

27000Maxima /

Sonata wrist watch

Table fan

17500 Philips radio

Set of 2 travel bags or set of

travel bag with trolley.

10000 Backpack Set of steel

pitcher with 6 glasses.

4500 Tester kitElectricians kit

including apron and toolkit

1000 Leather wallet Leather hand gloves

Rewards Catalogue

**Images used are just Indicative and are not actual images