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Shopping Centre Category: Best card based loyalty program The Cromatic Card Loyalty Program: We will reward you every time!

1. Describe the product or service for which your company is entering this award category (include the aims and objectives of initiative, project or programme) Felicia Shopping Centre was opened in October 2007. The scheme consisted in a large size- shopping gallery (11,000m2 with 83 tenants) anchored by a Carrefour hypermarket (approx. 15,500m2) and international brands, such as Marks&Spencer, Motivi, Accessorize, etc. It is located in the Romanian city of Iasi, a retail market with ever-increasing competition (5 shopping centres and malls, over 30 supermarkets and hypermarkets addressing a population of no more than 350.000 inhabitants). In this context, the challenge was to design an innovative one glove fits all card based loyalty solution, which would, within very limited costs, give value to both retailer and consumer, whilst incorporating three main characteristics: choice, flexibility and attainability. The Cromatic Loyalty Programs objectives addressed each a key stakeholder: a. Shopping centre: develop a continuous sales mechanism while achieving a more efficient external communication b. Tenant: increase underperforming stores sales, whilst providing all tenants with a platform that would boost their external communication efforts c. Consumer: enhance their shopping experience, while offering relevant and easy to redeem rewards 2. Where applicable, what has your company done in the period January 1 to December 31, 2011 to qualify for this award? In March 2011, Felicia Shopping Centre rolled-out the first loyalty rewards program that brought together a compelling shopping experience alongside with clear benefits. Using as a starting point Felicias tagline: Shopping in colours, a new brand was created: The Cromatic Loyalty Program. Marketing campaigns would from that point onwards involve card-based mechanisms only, and would be integrated with the multimedia InfoKiosk Infomatic and online platform. The launching preparation time was of only three months. The shopping centre stores as well as the co-owner Carrefour were grouped into three categories, according to their rent to sales performance: orange (low performance), pink (medium performance) and green (high performance). No matter the time of the year or the shop they bought from, consumers could now valorise each shopping receipt issued in the centre by simply translating its value into points at the Infomatic. Consumers needed to achieve a specific mix of coloured points on their card in order to qualify for rewards. This way, they were motivated to widen the number of stores they shopped in. Infomatic enhanced clients experience allowing them direct interaction with the system via touch screens, webcams, barcode scanners, LCDs. Its objectives referred to demographic and consumer behaviour data collection, promotion of products/ campaigns and brand differentiation. It also worked as a promotion tool for each tenant, as the interactive interfaces could direct consumers towards various websites or offers. The program gave access to numerous and diverse rewards: raffle prizes, instant presents, concert tickets, freebies from shopping centre partners. Infomatic allowed constant and simple point redemption, therefore there was no risk of having customers tired of waiting for the points to accumulate. A substantial effort was made to educate Cromatic users about the program, Felicia Shopping Centre instituting an aggressive marketing campaign, public relations, direct marketing, all

Felicia Shopping Centre Category: Best card based loyalty program The Cromatic Card Loyalty Program: We will reward you every time!

designed to promote three main messages: shop daily, accumulate points with each visit, enjoy the benefits! Moreover, an internal rewards and recognition system motivated store sales people to become the loyalty program frontrunners. 3. What benefits to your company and your customers can be illustrated as a result? The Cromatic card program met and satisfied its objectives effectively and far beyond expectations. It contributed to a measurable increase in sales and the generation of more visits to the shopping centre. Actionable insight is already coming out of the increased data capture, and targeted messaging is saving costs and increasing relevance. Felicia Shopping Centre reported in APR-DEC 2011 a turnover increase from the same period in 2010, up to 16,59% and a increase in traffic of 3.97%. Based on the points within the system, up to 4.23% of the turnover increase was directly generated by Cromatic. 5.32% of the 2011 turnover was converted into loyalty points which meant that every 5c in 1EUR spent inside the shopping centre was used to get extra benefits. In 10 months from launch, 1 in 10 people from Felicia Shopping Centres target market had a card and were in the database, in total over 8000 users (9.37% of catchment area). The program encouraged tenants to become more involved in the shopping centres marketing activities, due to the visibility it offered them. Stores that used to be less profitable reported an average increase of 40% in turnover. The best case store reported up to an average of 70% increase in their monthly turnover, with a percentage up to 40 of their turnover translated into points within the system. Over 40% of the shopping store tenants joined the program with constant card based discounts. The ones already having their own loyalty system started offering card-based benefits, via the Infomatics multimedia features. However, it was on the consumer side where positive results reached their peak. Clients who until then were visiting Felicia Shopping Centre only for its anchors would now start shopping in other stores as well, in order to fulfil the prize requirements. Moreover, the point transfer feature available at the Infomatic allowed consumers to exchange points with their friends, engaging an entire active community around the loyalty scheme. 4. What two measurements of success best indicate why your company should win this award? First of all, the Cromatic Card Loyalty Program increased the financial performance of the shopping centre. Underperforming stores increased their customer traffic and revenues. Higher turnovers generate happy tenants, while in the same time the owner will benefit from the higher rents that become more affordable for the shops inside the shopping centre. Secondly, the loyalty scheme contributed to higher positive brand equity. The benefit rating clients attributed to Felicia Shopping Centre increased in 2011 with 0.5, on a scale of 1 to 5. In other words, customers became more loyal, active and happier with their shopping experience. Joining a campaign did not mean filling out a raffle ticket anymore, but using interactive devices and animation, which perfectly fits the changing behavioural patterns. However, the greatest programs feature lies in its flexibility and multiple future development possibilities: integration with POS devices for each stores, expanding the number of external partners for a wide rewards offering, integration with social media networks and mobile applications all of which will help Felicia Shopping Centre meet the constant evolving needs of its clients and distinguish itself from the competition.