Managing and rewarding customer loyalty
A Britannia case study

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Page 5: Rewarding loyalty

Britannia, as an organisation, is based on its members and their loyalty. Loyalty is a characteristic of the utmost importance to building societies. Members have always been encouraged to see themselves as being at the heart of the organisation and the organisation always serves its members to the best of its ability. In order to foster and develop this relationship the organisation shares its success with its members.

The idea of sharing is in the true tradition of a building society. Since building societies were founded, individuals have placed their money into their own society as an investment. This is then lent out to borrowing members to buy their homes. So investors and borrowers act, through their society, in each others’ shared interests.

Britannia 2 Diagram 1Britannia is firmly behind this ideal and has carried out detailed market research which has shown that members support this stance. Unlike a bank, a building society does not have to distribute any of its profits to outside shareholders – instead, it is able to focus on the interests of its members.

Loyalty schemes help customers to take a greater ownership and responsibility for their organisation. They prosper in direct proportion to the success of their organisation. The loyalty bonus scheme builds on existing loyalties and seeks new ways of satisfying existing and potential customers. Importantly it sends out a clear message that the members of the Britannia are the key focus of the organisation.

With the Britannia Members’ Loyalty Bonus Scheme, qualifying members are able to share in an annual cash payment from that part of the Society’s profits which is not required for the continued growth or stability of the Society. Therefore, the more business members can give to Britannia, the greater will be profits, and the greater will be the bonus. The Members’ Loyalty Bonus Scheme is an extra benefit. It is in addition to the competitive savings interest, mortgage rates and professional and friendly advice which Britannia already provides.

All Britannia members qualify for this scheme, which means all those who hold:

  • Residential (owner occupied) Mortgages.
  • All Investment and Savings Accounts, except Deposit Accounts.

Some classes of member, such as those with commercial mortgages or PIBS, do not qualify for the bonus. Bonus points are awarded (up to a maximum) for each members’ holding. In addition, extra points can be earned from extra products that a member buys from Britannia, such as a unit trust or PEP, or an insurance policy.

The size of the bonus depends on the number of Britannia products held by a customer. For example, those with a Britannia mortgage, savings account and insurance policies would be able to earn a larger bonus than someone who had a single savings account with a small balance with Britannia. Points are allocated according to the products that customers hold and the bonus is calculated on the basis of these points. Points also increase with the length of time that a member has been with Britannia.

Britannia | Managing and rewarding customer loyalty