A REPORT ON

ANALYSIS AND IDENTIFICATION OF STRATEGIC PARTNERS TO ENHANCE TCS LOYALTY PROGRAM OFFERINGS.

ByRamyaa RameshTata Consultancy Services

Date:1.07.2013

A REPORT ON

ANALYSIS AND IDENTIFICATION OF STRATEGIC PARTNERS TO ENHANCE TCS LOYALTY PROGRAM OFFERINGS

ByRamyaa RameshRoll No. : DM14266PGDM (2012-2014)TCS-Retail Vertical,Chennai

Company Guide: Tata Consultancy ServicesMrs.Meril Sakaria Senior Consultant,TCS

Faculty Guide :Great Lakes Inst. of Management, Chennai Prof.Easwar IyerProfessor: Marketing (PGDM)

DECLARATION

I hereby declare that the Project Report ANALYSIS AND IDENTIFICATION OF STRATEGIC PARTNERS TO ENHANCE TCS LOYALTY PROGRAM OFFERINGS is my own work to the best of my knowledge and belief. It contains no material previously published or written by another person or material which to substantial extent has been accepted for the award of any other degree, diploma or programme of any other institute, except where due acknowledgement has been made in text.

Ramyaa Ramesh Date: 1.07.2013Roll No.: 14266Great Lakes Inst. of Management, Chennai

CERTIFICATE

This is to certify that Project Work entitled ANALYSIS AND IDENTIFICATION OF STRATEGIC PARTNERS TO ENHANCE TCS LOYALTY PROGRAM OFFERINGS, is a piece of work done by Ms.Ramyaa Ramesh under my guidance and supervision for the partial fulfillment of Post Graduate Diploma in Management, a Programme offered by Great Lakes

To the best of my knowledge and belief the Project Report: a. embodies the work of the candidate himself / herself b. has duly been completedc. fulfills the requirements of the Rules & Regulations relating to the Summer Internship of the Institute. d. is up to the standard both in respect to contents and language for being referred to the examiner

(Signature of the Faculty Guide) Prof.Easwar IyerDate:1.07.2013Professor,Marketing

ACKNOWLEDGEMENTI wish to thank the TCS authorities for providing me an opportunity to do a summer internship at the company for a period of 7 weeks. This has provided me a deep insight into the working of the organization and to relate practical use of academic tools related to Customer Loyalty Programs in the industry.I would like to first thank Mrs.Rajashree, Head, Retail Solutions Group, who provided me with an opportunity to do my internship at Tata Consultancy Services.At TCS Retail Vertical, I would thank my company guide Mrs. Meril Sakaria who gave me an opportunity to work in the field of Customer Loyalty . I am grateful to Mrs. Meril Sakaria for guiding me through my project, clearing my basics to get a hold of the topic and patiently answering all my queries. I would also like to thank my Faculty guide, Professor.Easwar Iyer, who guided me throughout this learning process and was a constant source of motivation. I earned a great opportunity to exhibit research talent and have got one of the best opportunity to express myself with my work.I would also like to thank Mrs.Maya and Mr.Yuvraj from TCS, who provided their valuable inputs throughout the internship, which really helped in successful completion of my project report.I hope that I have manifested my sincere attempts to represent all the information and other things to the best of ability.

Ramyaa RameshDate:1.07.2013Roll No: DM14266Great Lakes Institute of Management, Chennai

EXECUTIVE SUMMARY

Analysis of different loyalty program service providers-their strengths and market reach.An organizational SWOT analysis conducted to identify suitable players.To understand the new trends and offerings by the niche loyalty service providers.The programs relevant to leverage TCS expertise identified.A partnership evaluation matrix formed based on a set of parameters.The niche players ranked by importance based on the parameters and evaluate suitable strategic partners.

TABLE OF CONTENTS

1.Declaration 32.Certificate 43.Acknowledgement 54.Executive Summary 65.List of Tables 86.List of Diagrams 97.Abbreviations 108.Introduction 119.Methodology2010.Data Analysis 2111.Findings & Suggestions4012. Recommendations 4513. Conclusions 4614. Appendices 4715.Bibliography4916. References50

LIST OF TABLES AND ILLUSTRATIONS

1. Loyalty Program Types2. Gamification Market Forecast3. Metrics 4. Partnership Evaluation Matrix

LIST OF DIAGRAMSFig. 1. Loyalty Program CycleFig. 2. Loyalty Program DesignFig. 3. Overview of TCS offeringsFig.4.Leaders in Loyalty Program Service ProvidersFig.5. Gamification MarketFig.6. Level of customer engagementFig.7.Gamification OverviewFig 8. Partnership Evaluation FrameworkFig.9 Partnership Evaluation Graph

LIST OF ABBREVIATIONS

Customer relationship management CRMNear field communication NFCQuick Response CodeQR CodeUnique Selling PointUSP

INTRODUCTION

Complexity of modern business requires managers to strive for innovative strategies to acquire and retain customers in any product market field. As acquiring new customers is getting costlier day by day, business organizations have offered continuity/loyalty programmes to retain/reward existing customers and maintain relationships. The premise of CRM is that once a customer is locked in, it will be advantageous to both the organization as well as customer to maintain relationships and would be a win-win situation for both. Consumers find it beneficial to join such programmes to earn rewards for staying loyal. Hence, Loyalty Programs allow consumers to accumulate free rewards when they make repeated purchases with a firm. Through loyalty programmes, firms can potentially gain more repeat business, get opportunity to cross-sell and obtain rich customer data for future CRM efforts. Loyalty management systems form the core of a loyalty program. These systems need to be systematically updated to keep pace with the changing demands of the GenZ customers, emerging businesses and operational trends and challenges in the loyalty industry around program administration, cost efficiency, customer acquisition, and customer retention.

Customer loyalty programs-A reviewCurrent Loyalty Program LandscapeThe first mileage-based loyalty program was launched by American Airlines more than 23 years ago. Today, loyalty programs are ubiquitous. There are more than one billion people worldwide enrolled in loyalty programs, and in some industries such as airlines and hotels, loyalty programs have become one of the most critical means by which companies manage their customer relationships. More than 125 million people worldwide are enrolled in airline loyalty programs. About 76 percent of all U.S. grocery retailers with 50 or more stores have a loyalty program. Almost 50 percent of the top U.K. retailers have loyalty programs. About 75 percent of Americans belong to at least one loyalty program.Loyalty coalitions are especially popular in Europe: Payback by Loyalty Partner in Germany has more than 25 million members,19 and Nectar in the U.K. has more than 20 million members.

Objectives of Loyalty ProgramVariety of objectives - such as to build lasting relationships, to gain profit through extended product usage & cross selling, to gather information, to strengthen loyalty, to defend, to preempt competition; can be addressed through loyalty programs. Loyalty programs encourage consumers to shift from myopic or single-period decision making to dynamic or multiple-period decision making as loyalty programs operate as dynamic incentive schemes by providing benefits based on cumulative purchasing over time.

Benefits to the firm: Loyalty programs yield benefits both to the firm as well as consumers. It is expected that increased customer loyalty leads to lower price sensitivity & stronger brand/store attitude which create switching barriers. Access to important information on consumers & consumer trends enables to design appropriate reward and communication programs leading to greater satisfaction, commitment. This gives competitive advantage to a firm. Loyalty programmes also increase referrals/advocacy. Long term relationships can be built through these programs. Benefits to Consumers:Consumers benefits as their risk is reduced as some incentive is offered to stay loyal. Psychological reassurance is experienced dealing with the same firm. Consumer also gets a feeling of a smart shopper. Once consumer is convinced about the value he derives from purchase, repeat behavior becomes a habit or inertia and this reduces time in evaluation, comparison and search. Advocating the firm to peers also gives satisfaction and motivation to act as an opinion leader. Trust & commitment is reflected in future dealings with the firm. Relationships are observed as for mutual gain and not as being viewed as purely on commercial basis.

Loyalty Program Cycle

Fig.1 Loyalty Program CycleLoyalty Program DesignLoyalty programs use a variety of program design and funding options, such as a mix of issuer and merchant-funded options, in order to reduce and distribute their loyalty costs among various participants. The three most commonly adopted program design options are coalitions, partnerships, and white labeling. Of all the three program design options, coalition programs are the most attractive for financial services institutions as it helps them distribute the costs of running the loyalty program among the various coalition partners.

Loyalty Program DesignFig.2 Loyalty Program design

Types of Traditional Loyalty Programs:Program TypeCharacteristics of ProgramExamples

Type 1:Members receive additional discount at registerMemberships open to all customers. Each member receives the same discount regardless of purchase history. Database may not link purchase history to specific customerSupermarket programs

Type 2:Members receive one free unit after purchasing n unitsMembership open to all customers. Clerk "stamps" the loyalty card after each purchase. Customer database is not required.Local car-wash, nail salon, SuperCuts, PETCO

Type 3:Members receive rebates or points based on cumulative purchasesSeeks to get members to spend enough to receive qualifying discountAirlines,hotels,credit card programs,Staples,Office Depot

Type 4:Members receive targeted offers and mailingsMembers are divided into segments based on their purchase history. Requires comprehensive database of customer demographics and purchase historyTesco,Dorothy Lane Markets,ShopRite,Winn-Dixie,Harrah's Hallmark

1.Types of Loyalty Programs

Loyalty Program offered by TCS

TCS classifies the evolution of loyalty and rewards programs into three broad eras. The Era of Anonymity included nearly a century of rewards programsfrom Green Stamps to box tops. The retailer had no knowledge of who received the rewards. Every customer received the same ones, regardless of their buying behavior, preferences or frequency. The Era of Individualization began with frequent flyer programs. Loyalty was rewarded individually. Everything was personal, from tracking to targeting to tiers. It became a highly efficient way to communicate with customers across channels and to directly reward the customer. Rewards varied based on purchase and frequency. The Era of Shared Loyalty is upon us, just 30 years after the first frequent flyer program. Social platforms turn loyalty into something that can be shared across each customers own social communities to develop more new customers for the retailer.Based on experience of having delivered innovative customer engagement solutions for retail clients, and on available industry research, TCS has compiled a list of best actionable practices of loyalty program which have been implemented by them:1. Segment Based Personalization2. Value Driven3. Allow Customers to Personalize Rewards4. Reward In-store5. Cross-Channel Common Messaging6. Just In Time Customer Communication7. Break Boundaries for acquiring Customers

Overview of TCS offerings

Fig.3. Overview of TCS offerings

TCS ProductsTheir key product offerings include the following: TCS Rewardz: TCS comprehensive solution manages all types of rewards, delivering targeted and personalized rewards programs across all channels. The components of TCS Rewardz include Customer Self Service Portal, mLoyalty, Global Offer Hub which make personalized retail possible. TCS NOLYNE POS: TCS platform-independent, cross-channel store suite consists of POS and store inventory management. Its built on an open and flexible architecture and improves store agility and flexibility. TCS mPOS: TCS highly flexible mobile point of sale system ensures efficient customer service and allows for rapid implementation. TCS Optumera: TCS next generation merchandise optimization suite is based on the principle of Customer first. It enables you to group stores, right-space categories within the stores and create optimized assortments on the basis of customer behavior, demand transfer patterns and shopper trips. TCS Store Power: TCS in-store mobile solution, powered by the HY5 mobile application platform, increases store efficiency and empowers associates to engage with their customers. TCS e-Commerce Platform: This supports end-to-end, shopper-centric retail e-commerce.

METHODOLOGYThe objective of the project was to critically review the customer loyalty programs offered by TCS & identify suitable strategic partners to enhance its reach & applications. The first phase of the study was an internet-based research to identify the new emerging concepts and offerings available in customer loyalty programs & their relevance to TCS based on its inherent expertise & strengths. In the second phase, a detailed survey of the various loyalty program service providers in the market was carried out & their strengths and market reach was analyzed by conducting a SWOT analysis. The most promising potential partners so identified were ranked using gap analysis & partnership evaluation matrix methodology, based on identified parameters.

This is a confidential report for TCS and is targeted to those, who want to help TCS build their competency though means of Partnership, Acquisition or collaboration.

DATA ANALYSIS

Leaders in Loyalty program Service Providers

Fig.4 Leaders in Loyalty Program service providers

New Emerging Trends in Loyalty ProgramsIn view of the tremendous competition, new channels of communication, and emergence of new media tools like internet websites n social websites like twitter, facebook etc many new loyalty programs have emerged recently. A brief study of these loyalty programs was conducted provided in appendix 1.Based on this, an analysis of new trends and the niche service providers who offer these trends have been identified for deeper study and evaluation by the company. The selection of the companies were based on a set of parameters(Refer Appendix 3).Given below is a compiled list of some of the new emerging trends that have great opportunity for future:1. Earn, Burn and YearnRecent breakthroughs in neuroscience that have established that intrinsic motivators are more powerful than extrinsic rewards for influencing human behavior, should give loyalty marketers the required push to pursue initiatives that add a Yearn and Learn dimension to the existing Earn, Burn.For the Yearn aspect, marketers need to move beyond their loyalty value proposition to the brands cause and take efforts to understand what causes are important to their customers while staying true to their brand values. These cause marketing initiatives not only improve the brands image but also cultivate deep irrational customer loyaltyFounded in 2005, Loylogic builds loyalty earn-burn solutions and runs global, loyalty points e-commerce and m-commerce shopping solutions with the largest, fastest-growing and most innovative loyalty programs worldwide. Loylogic turnkey solutions, offered as a Software as a Service (SaaS) model, help loyalty program clients to boost sales and member engagement by combining loyalty innovation with state-of-the-art web or mobile technology and the fastest-growing global merchant network. Loylogic is a leading loyalty marketing and payment company with headquarters in Zurich, Switzerland and global offices in Atlanta/USA, Brighton/UK, Dubai/UAE, Riga/LAT and Pune/IND.

Major Clients: Etihad Guest,SAS EuroBonus etcCompetitors:Direxions,R&R Solutions

2. Game MechanicsGame mechanics are todays rocket fuel of loyalty programs. Think gamification. It used to be social, but social is now an assumed ingredient. The future of loyalty programs foresees a bright future filled with Gamification. Consumer games and digital entertainment continues to attract attention given the interest the public has with games. Compelling game mechanics and design are at the core of an engaging user experience. Gamification, therefore must work to enhance the user experience in order to better engage, retain, motivate and promote overall participation.

Big Door Media Located in Seattle, Big Door was founded in June, 2009. The company has focused on consumer gamification and will launch its new tiered platform in March 2012. The Bigdoor platform provides small websites code that is embedded in websites to achieve gamification/reward features and offers more sophisticated solutions for mediumsized websites that extend to rewarded actions and delivers customized gamified loyalty programs to large websites that are tailored to meet specific engagement goals. Major Clients: Dell, MLB.com, Nickelodeon, Wetpaint and music artists Big K.R.I.T. and 2 Chainz Competitors: Badgeville, Gamify, IActionable, gigya, PugPharm,Gaminside,BeintooFunding: $7.9M

As with many emerging platform technologies, Gamification has quickly gone from a horizontal market to decisively more vertical orientations. There are a number of vertical markets centered on key industries.

Fig.5.Gamification Market

(in millions)Total201120122013201420152016

$100$242$522$980$1,707$2,830

2.Gamification Market Forecast

Market growth is consistent with the growth seen by companies as they ramp up their internal efforts to meet demand. There is an expected doubledigit growth for the coming years, with our overall market estimates reaching $2.8 billion by 2016.

Levels of Customer Engagement

Fig.6.Levels Of EngagementThere are several layers where game mechanics have measurable impact. The first level of engagement is the direct connection with the brand or employer, where users interact with a product, service or process. Individual engagement allows for selfexploration and expression within the environment. Finally, communal enables deep interactions with others in the community and supports dialog and community building beyond the initial parameters set by the brand or employer.

Fig.7.Gamification OverviewUnderstanding and applying these mechanics gives companies a powerful tool to transport information, change consumer behavior, influence decision processes, direct product and brand perception, and motivate and educate employees. Game mechanics deployed within gamified applications offer a huge opportunity to engage an audience with a specific topic.In addition to applying proper mechanics and design elements, it is equally important for companies to understand the analytics and metrics of a gamified implementation. Defining goals early in the design process is critical to the overall success of the application. There are wide ranges of metrics that can be used to measure active user behaviors but the majority fall into four categories:

3.Gamification Metrics

3. Consulting: The Key for Customer Loyalty?Consulting firms are beginning to advertise services that promise a higher rate of customer loyalty and return dollars to its clients. New companies promising incentive programs that guarantee repeat dollars are making their way to the net. Whether emphasizing e-commerce or in-store traffic, it seems that the new trend is not to focus on new customers but reestablish the relationship with the old ones.

With headquarters at California, 42 Terabytes is a boutique content and strategy firm specializing in social rewards platforms and gamification initiatives. This social consulting and deployment firm offers a full suite of professional and creative services, including campaign architecture, content creation, community engagement and measured results.Clients: PEPSICO, INC, Nitiva, Estonian AirFund:$9M4. Friend, blend, spend (the open-loyalty economy) Loyalty programs have become commoditized due to an absence of head-turning innovation. Cold, hard cash is the most universal commodity of all. Without much differentiation between programs, consumers are demanding that their programs offer an increasingly cash like redemption process. Marketers are responding by offering more variety in redemption options, and simplifying those with cash or near-cash rewards. The result is an increasing open-loyalty economy of points sharing, pooling and universal redemption. Similar to peer-to-peer payment programs such as PayPal, Venmo and Dwolla, the open-loyalty economy enables people to exchange currency with trusted friends and businesses. Young tech-savvy consumers in particular are embracing this technology, leading us into a future in which points look more like currency.The First Universal Loyalty Program Currency, Bitcoin aims to transform the engagement economy, and its unique attributes will make it a key coin of the realm for the coming loyalty 3.0 boom. This a virtual currency that could be easily integrated with loyalty-one that is broadly accepted, readily convertible, stable and cheap to access, and hence, new loyalty entrants could quickly scale their reward systems. While major travel, gaming and financial loyalty programs are content to live in their walled gardens, strictly controlling access to the currencies and ruling their virtual economies with a tight fist, is predicted to be the future of loyalty programs .Bitcoin stands to grow tremendously as private industry ramps up its use in engagement, loyalty and commerce. An embrace of this new and exciting tool promises unlimited opportunity for the marketplace and the world.Fund:$2.5MCompetitors: Litecoin,Namecoin

5. Mobile digital wallets This marks a big shift in retail payments. With the value of transactions made over mobile devices estimated to be $240 billion this year (Juniper Research) and predicted to triple that size over the next five years, its not surprising that the battle over mobile wallets will continue to intensify. And with analysts at Forrester predicting that by 2016 consumers may be able to leave their traditional leather wallet at home and pay for most of their shopping over their handset, retailers need to think about the impact of mobile wallets as they build out their loyalty programs.

Paycloud is the first mobile wallet for iPhone and Android Smartphone that rewards its users with discounts and deals without ever carrying another piece of plastic. Users connect with just one touch to join rewards programs, check their account status, view coupons and redeem rewards.Paycloud integrates seamlessly with all existing SparkBase Loyalty and Rewards programs, and works with almost all merchants existing terminals. No new expensive NFC hardware required.The SparkBase processing network powers Paycloud, providing merchants with online tools to track customer spending, watch for new shopping trends, and offer daily deals and coupons that keep customers coming back. SparkBase reinvented the stored-value industry in 2004 as the first truly independent gift and loyalty processing network. Today, SparkBase continues to lead in innovation with its proprietary gateway, using patent pending technologies developed in house at their headquarters in Cleveland, OH. SparkBase is the largest processor of private label gift and loyalty card programs to the financial and merchant services industries.Competitors: SmartTag, Vollet.in, MobileWalletMedia, Wincor Nixdorf etcFund:$9.54 M

6. A growing trend: Micro-incentivesThere is a growing number of manufacturers who are launching multiple micro-incentives programs that are more targeted and to a smaller group then they have ever run before. This growing trend is changing the way that Channel Marketing Managers and Sales Managers are allocating their budgets, in fact it is allowing them to increase their ROI because of how granular they can make their programs, right down to a specific town or store location if they wanted.What's revolutionary about micro-incentives for loyalty is the concept that, instead of requiring your customer to accumulate points over time in order to redeem something of exciting value, you could instead choose to excite your customer and give instant gratification ;every time they take an action you value. A social media post, a product review, a store visit, or a purchase could all trigger instant rewards. It's a new option to add to your tool kit for loyalty, and one that promises to be a game changer.Rather than giving shoppers a 10% discount or $10-off their next purchases, online retailers that partner with Ifeelgoods can reward their customers by offering $10 worth of credits on iTunes, Skype, Pandora, or any other number of popular apps. Businesses can offer micro-incentives for doing things like signing up for an email list or making a purchase. Online retailers can also target the incentives they offer based on the products their customers are currently looking at. For example, a shopper browsing video game consoles might get an offer for a free video game with purchase.The leading digital promotions platform, Ifeelgoods helps marketers incent, convert and reward their audiences with instant fulfillment of desirable gifts from Facebook, Amazon, iTunes and more as a reward for any trackable action online, offline or mobile.They have over 100 clients including Walmart, Coca-Cola, Universal Pictures, 1-800-Flowers.com, Meijer, Redcats USA, Otto Group, Renault and FTD. Ifeelgoods is a hosted technology platform that manages digital goods promotion offers, redemption, social sharing and customer service. The company is headquartered in Silicon Valley with locations in New York and Paris.Fund:$11M

7. Glocalism: The term Glocalism technically means the adaptation of a product or service to each location or culture in which it is sold. But under the radar, Glocalism also signifies how regional businesses can be altered by events that take place far away. The best start to any kind of crisis management plan is assessing the organizations ability to respond to unexpected events. CardStar Inc. is a Boston-based company which eliminates wallet and keychain overload by consolidating your membership and rewards cards with a single free app by developing mobile applications that perpetuate the use of loyalty cards and mobile coupons. The cross-platform mobile loyalty card app CardStar integrates Foursquare into the newest version of its iOS 4 app, combining rewards cards and location check-ins into a single app. The result could be something that helps big retailers emerge from this Location-based "fray."Competitors: PlacePop, Cardagin, Mobestream Media and CardBank.Fund: $1.75 million8. Using marketing analytics and business intelligence to measure loyalty program parametersIt is becoming increasingly complex to measure the impact of new channels such as online, mobile, and social, on incremental customer spend and customer satisfaction improvement. Analytics and CRM solutions provide insights into customer behavior and use tools of business intelligence, such as data mining, to identify trends that feed into targeted loyalty campaigns and innovative future program offerings.

LoyaltyMatch OnDemand provides a cloud-based loyalty management with social loyalty engagement across social, web, mobile, instore, and machine experiences. It offers more features, more powerful customization, easier integration, and the best customer experience. Combined with Social Loyalty, together they offer the fastest path to the development and delivery of loyalty and engagement initiatives and have revolutionized the way businesses manage customer value. It Integrates with legacy loyalty programs or IT systems or can be deployed on a standalone basis. And best of all, it can all be deployed immediately and is Ideal for businesses, groups or associations. LoyaltyMatch's ecosystem of consulting and rewards management partners complements the SaaS services to offer a complete end-to-end solution including services like creative and campaign management.Clients: Clarins, Legends Resorts, The Man Shop, and many others.

9. Customer centric Loyalty Programs-"Buzz Time"From nice-to-have, loyalty programmes have become a strategic imperative for customer-centric organisations. Attaining deployable customer-centricity in a loyalty program is indeed a gradual & progressive process which also requires the re-orientation of an organisations internal processes and conditioning of employees to put customer needs first.Too often, organizations do not listen to the cries of their customers and then wonder why they lose their business. The Buzz Insurance realized that what customers wanted more than anything was to belong to an insurance company that treats them as individuals and values customer loyalty. The Buzz Time created a loyalty program that rewards customers with gifts of time. As a customer renews their insurance policies they earn points that can be redeemed for time-saving services. These services include: home cleaning and gardening, PC and network services, and driving/car maintenance courses.Competitors: SunTec, INFINIA Services & Solutions

10. QR CODES GET REALMarketers have used QR codes across a wide swath of industries over the past few years. Unfortunately, many organizations havent tapped into the tool's full potential. Too often, they send a user to a home page or the wrong landing site rather than directing them to the specific information theyre seeking at that moment. QR code usage will grow and become more relevant as marketing managers learn about the sophisticated ways they can be used, predicted Brad Hines, an independent social media and Internet analyst.Already, supermarket giant Tesco has introduced virtual kiosks at subway stops in Korea and the U.K. that allow shoppers to buy items by scanning QR codes on life-like replicas and have the items delivered to their homes. Meanwhile, retailing giant JC Penney has introduced a Santa Tag that includes a QR code on the gift box. It links to a recorded voice message from the sender. With QR codes, creativity is the limit.

PerxSingapore-based startup, Perx, is a cool, new way to save money while shopping. Perx, in essence, is a loyalty program on your mobile, according to the companys website. The Perx app lets you collect rewards and chops from your favorite merchants all in one place. All they have to do is scan a QR code provided by the merchant when checking out, and soon enough theyll be collecting chops and earning rewards. As an added bonus, there is also a Perx wheel that users can spin to get instant prizes.Competitors: around!, Squiryl, and Pointpal,Fund: -34,752.

11. REPUTATION MANAGEMENT JOINS THE BIG LEAGUESThe rise of social media, including blogs and review sites, has created a need to monitor posts and gauge consumer sentiment. Although Google Alerts has been around for years and many organizations use it and similar tools to track online postings many organizations lag far behind. However, reputation management tools are becoming more sophisticated and indispensable. Companies must have a sure-fire way to keep track of whats being said about their brand.Swipely,a startup that allows local businesses to manage customer loyalty programs using credit card purchase data with Reputation Monitoring And Campaign Tracking features. Founded in 2009 by Angus Davis, the USA based company includes veterans of Tellme, Microsoft, Netscape, and Paypal.

Build Strategic PartnershipsLoyalty programs evolve by means of partnerships. The right program partners can provide your program diversity and opportunity. They enhance the value proposition of the program as well as reinforce the brand association. Partnerships create opportunities for additional earnings or reward offerings. Establishing strategic alliances may even provide a source of acquisition, bringing new customers to your brand.

FINDINGS AND SUGGESTIONS

Suggested Area of opportunities for TCS to extend its offeringsTCS has strong technology base.TCS uses open source software and has Omnichannel facilities. Their possible area of development could be at the Analytics phase.Marketers must be more aware of individual customers, target and time messages more accurately, and deliver a consistent brand message across all channels. Management of all of these tasks requires sophisticated software that is powerful yet easy to use. A cross-channel campaign management will help in targeting millions of individuals, with the right message at the right time through the right channel.With Cross-channel campaign management and reputation monitoring added as a tool in loyalty programs, management of all campaign interaction can be consolidated in a single platform. You can develop, run, optimize, and evaluate all customer interaction strategies and integrate campaigns and event-driven programs. The campaign management software helps to implement sales and marketing strategies effectively by maintaining the information on the customers and prospects within one centrally located database.A loyalty program consultant could also be an option for partnership as TCS sees opportunities there to provide strategic counsel across the spectrum, from program updates to enterprise loyalty, providing expert guidance on all aspects of loyalty strategy, program structure and execution.Micro-incentive in the loyalty program is a new useful option to add to the tool kit for loyalty, and one that promises to be a game changer to help increase ROI and hence benefits TCS The future of loyalty programs foresees a bright future filled with Gamification. Consumer games and digital entertainment continues to attract attention given the interest the public has with games. Compelling game mechanics and design are at the core of an engaging user experience. Gamification, therefore must work to enhance the user experience in order to better engage, retain, motivate and promote overall participation. Hence, after analyzing different loyalty program service providers (Refer Appendix-1) and predicting future trends potential, the best possible strategic partners for TCS would be Swipely,Bigdoor,Bitcoin,Loyalty Match and 42 Terabytes. To choose the best from these options, it is necessary to build a framework for partnership evaluation.

Partnership Evaluation FrameworkBelow is a framework that is built by considering different parameters of evaluation such as Company size, USP, Headquarters, Employee Strength, Revenue, Achievements, Clients, Competitors, Benefits to TCS, Customers and to the loyalty program service provider.

What loyalty Programs offerWhat customers wantWhatTCS offers? Fig.8 Partnership Evaluation FrameworkThe below tool is used to evaluate potential partnership opportunities. In the "Partner Evaluation" tab, the weighting for each evaluation criteria is changed to suit users requirements. For each partnership opportunity, the potential of each opportunity is ranked based on the scale provided for each parameter. The Totals at the bottom of the matrix is viewed to evaluate the overall potential for each partnership opportunity. The best possible opportunity is evaluated for a possible partnership.

4. Partnership Evaluation MatrixFINDINGS :

Fig.9 Partnership Evaluation Graph

RECOMMENDATIONS:For each of the above listed parameters, the potential partners-Swipely,Bigdoor,Bitcoin, 42 Terabytes and Loyalty Match were selected based on relevance to TCS and were evaluated using the partnership evaluation methodology. It was found that Big Door ranked highest with a score of 8.8 while Bitcoin was ranked the least with a score of 7.2 on a scale of 10.Hence,BigDoor can be suggested as a strategic potential partner for TCS.

CONCLUSIONTCS has already been a significant player in promoting Customer Loyalty program in the USA and UK. There are several new Customer Loyalty related offerings being provided by niche service providers, which TCS is not currently offering. The current study was primarily aimed at identifying and analyzing these new programs and their relevance for TCS to make similar offerings. Based on the internet based study conducted, several companies were identified and the features of their program were reviewed. Based on this research, the above companies have been identified as potential partners to work along with TCS, leveraging their current expertise to enhance the market potential in collaboration with these companies.

The Way ForwardPredicting the future has never been easy, however the underlying needs of customers and the drivers of loyalty will continue to hold true. It is thereby understood that this approach offers good business potential to TCS and hence must be further pursued by a special team who evaluate further action.

APPENDICESAppendix-1

Appendix-2 SWOT AnalysisBig Door

Appendix-3Parameters for Evaluating Loyalty Programs

BIBLIOGRAPHY:

1. Colloloquy Under the Radar Trend Report 20132. Forrester Report on Campaign Management3. ORACLE Whitepaper Report 2005:Ensuring Customer Loyalty4. Loyalty-Management-1st-Quarter-2012-Issue

REFERENCES:

1. http://www.tcs.com/industries/retail-consumer-products/Pages/default.aspx2. http://www.demandmetric.com/content/partnership-marketing-evaluation-matrix3. www.ebsco.com4. http://loyalty360.org/resources5. http://www.prweb.com/releases/2011/12/prweb9021678.htm

50