ASB uses Cadencie to launch global first in Loyalty

7 November 2007

ASB – a recognised leader in customer service – has used Cadencie to launch a new loyalty scheme it says has increased benefits & convenience for customers while significantly improving processes and costs for ASB.

The loyalty scheme is understood to be a global first, leveraging ASB’s existing Cadencie infrastructure to create an innovative rewards scheme that loads dollars directly onto a debit card. The card can be used to pay for goods directly at point of sale in participating retail stores, or to shop online at ASB’s web store.

ASB’s National Manager Issuing, Sean Preston, says the new ‘True Rewards’ scheme was launched in a matter of months, and has big advantages for both customers and ASB.

“Customers no longer have to wait to accumulate and redeem points, or wait to receive vouchers,” he says.

“They simply have a debit card that holds True Rewards Dollars, which they use at participating stores to buy whatever they want. Even if they don’t have all the True Rewards Dollars they need, they can pay the balance with cash, EFTPOS or credit. They also don’t have to worry about expiry dates, because the dollars don’t expire.”

ASB uses Cadencie, a Card Management System offered by GFG Group Limited, to offer a bureau service to other institutions in addition to servicing its own customers and those of its online banking subsidiary, BankDirect. In 2007 ASB became one of only eleven financial institutions worldwide to win an inaugural MasterCard Worldwide Global Quality Platinum Award for excellence in operational achievements.

ASB’s new loyalty scheme has created fresh value from its Cadencie system.

“We’re now getting significant operational cost savings from process efficiencies and increased automation,” Sean Preston says.

“Interchange income is a declining revenue stream, so funding for rewards programs is under pressure. We’ve used Cadencie to remove cost from our loyalty programme while maintaining value for the customer.”

While the bank is looking to migrate more redemptions to the more efficient point-of-sale channel, it has also outsourced the True Rewards Online Shop and back end processes to Carlson Marketing Group – a world leader in marketing programs.

“With over 200,000 True Rewards customers, the savings in mailing and administration costs will be significant,” says Sean Preston.

“Last December we took 30,000 calls at our call centre dealing with redemptions. The new system will drastically reduce this pressure at an already busy time of year. Every on-line or in-store redemption is one less call to the Contact Centre.”

ASB expects a greater number of redemptions for smaller amounts, because customers can see an exact amount in their account, and redeem their True Rewards Dollars directly at point of sale.

“We’ve got a great platform that we can now build on to further enhance value to the customer. We’re moving ahead with some new initiatives that we expect to announce in the New Year,” Sean Preston says.

“The beauty of Cadencie is that you can leverage the purchasing power of your customers’ transactions. Merchants are keen to participate in return for exposure among our customer base and the opportunity to drive additional customers into their shops.”

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