Layering Success on Concierge Services Platform —Comprehensive Loyalty Program For Affluent and Mass-Affluent Demographics
Client Need
In 1997, a credit card issuer approached VIPdesk with a desire
to harness the capabilities of the rapidly expanding Internet. They
wanted to be the first card issuer to provide services such as
online discounts and assistance with dining reservations via phone,
web or email to mass-affluent cardholders. The credit card issuer
required a platform both flexible in scale as well as in scope of
services, ultimately selecting VIPdesk to develop a platform
capable of meeting the credit card issuer's short- and long-term
goals.
VIPdesk Approach & Solution
VIPdesk Concierges provided cardholders with assistance in
categories including dining, travel, entertainment, sports &
recreation, household and special events. The scalable VIPdesk
Concierge platform and collaborative relationship with the client
enabled the credit card issuer to simultaneously layer additional
services offerings while consolidating vendors, ultimately
providing a comprehensive, streamlined cardholder experience.
Key initiatives
included:
Cardholder Experiences Programs
VIPdesk worked with the credit card issuer to design and fulfill
two cardholder experiences programs, both of which consisted of
unique opportunities exclusively packaged for cardholders such
as:
- All-Star Hockey - on-ice experience, seats and private meeting
with the players
- Food Network - Access to taping of Emeril, private tasting,
meeting
- Chicago show in NY - including premium seats and backstage
tour, dinner with the cast and a signed souvenir poster
VIPdesk was involved from development through delivery of both
cardholder experiences programs including:
- Brainstorming sessions with the client and its third-party
agency to determine meaningful offers and experiences for
cardholders
- Management of on-site events, including management of
entertainment providers
- Development of statement inserts and coordination of cardholder
communication
- Fulfillment of cardholder experiences
Business Savings Club
VIPdesk developed, sourced and managed over 100 brand-name
business services and product discount offers available to small
business owner credit card portfolios. This included development
and management of all offer sourcing and marketing. The Business
Savings Club allowed the credit card issuer to provide more than 75
discount offers to its customers in categories including business
travel, communications, financial, internet resources and legal
needs.
Program Expansion
In 2007, client added Concierge Services capabilities to a new
elite card offering targeting an ultra-affluent demographic.
Heightened data security requirements required a new structural
approach, however VIPdesk was able to quickly provide a savvy
dedicated team knowledgeable on all aspects of the new elite card's
platform. As a result, cardholders were able to engage a Concierge
via a secure and segregated technology platform.
Program Expansion Results
VIPdesk's call volume for this specific card is 400% more than
it was when the program launched in 2008. In addition, there has
been a shift in focus from Concierge-specific servicing to a more
holistic approach. As such, VIPdesk services not only Concierge
requests but also provides value add benefit reinforcement to
cardholders, and assists with other inquiries.
Throughout this time, VIPdesk has continued to meet or exceed
the stringent service levels in place for these programs, ensuring
that greater than 95% of all calls were answered in 20 seconds or
less and that less than 1% of all calls were abandoned.
Benefits and Travel Consolidation
In order to assist this client in further service consolidation,
in 2008, VIPdesk transitioned the traditional Concierge Service
structure into a "one voice" servicing model for all client
programs. VIPdesk Concierge assist cardholders with all inquiries
including benefits, Concierge fulfillment, reward redemption, and
general account information.
With the ability to cross promote benefits, VIPdesk has
positively impacted the level of client engagement across a
relatively large access base. Average annual usage rates increased
15%, with a 66% increase in Concierge usage rates. There have also
been significant increases in spend levels, repeat usage, positive
feedback and client satisfaction levels.
Rewards & Benefits
Due to the success with the "one voice" structure, the client
decided to transition additional services from other vendors to
VIPdesk. This increased the total volume of calls handled by
VIPdesk's Concierge and Rewards teams by over 150%.
Relationship Results/Successes
Today, VIPdesk supports 38 programs for this client,
representing over 3 million cardholders. VIPdesk has provided
demonstrable ROI in a number of key areas, including:
- Improved cardholder acquisition and
retention: incorporating Concierge Services into
marketing initiatives supported a 45% annual increase in the total
Cardholder base over a four-year period with nearly 97%
retention
- Expanding cardholder engagement: creating
ongoing marketing initiatives and structuring the Concierge
Services program to support cross-promotion of other program
benefits led to annual cardholder engagement/usage levels reaching
170%
- Providing a true seamless cardholder
experience: implementing a "one-voice" servicing
structure resulted in a 66% increase in usage of the Concierge
Service benefit as a result of cross-promotion of benefits
- Driving spend: increasing the
visibility/engagement of the Concierge Service resulted in a 75%
increase in the number of transactions and a 40% increase in the
average transaction value
- Driving cardholders to online usage
channels: leveraging Concierge Service to drive
online usage led to a 98% increase in usage of online services
offered by the client