Customer Loyalty Scheme

1

• Customer Loyalty Scheme
• A Legal Point of View
• Maria-Jesus Alonso
• March 6, 2009

2

• CONSIDERATIONS
• Customer-related
• Objective
• Type of Customers
• Purpose
• Business-related
• Business Activity
• Data involved
• LEGAL IMPLICATIONS

3

• Customer related
• OBJECTIVE
• Loyalty Plan
• Keep
• Grow
• (increase nbr. of customers is not loyalty)
• Gain back (non active cust.become active again)

4

• Customer related
• TYPE OF CUSTOMERS
• Companies
• Individuals
• Professional use
• Private use
• Of age - own use/consumption
• Of age - indirect channel for minors
• Minors

5

• Customer related
• PURPOSE
• - Improve customers perception (image/brand)
• - Improve quality / customers experience
• (products services post-sales)
• - Enhanced products/services
• - New products/services
• - Offers rebates/discounts/prom.packs/free
  products/samples

6

• Business related
• BUSINESS ACTIVITY
• Products
• Raw materials ---- to be processed
• Finished products --- part of a Value Added Offer
• Finished Products --- ready to be used/for
  consumption
• Services

7

• Business related
• DATA INVOLVED
• Record of orders
• Frequency / quantities
• Evolution of orders (changing products)
• Intended use / guess needs
• Behavioural patterns / profiles

8

• LEGAL IMPLICATIONS

9

• Legal Implications
• Personalized communications
• General communications
• Competition related

10

• Legal implications
• A)Personalized communications (1/3)
• Data protection
• Privacy
• Personal data - customers records
• Profile - behaviour
• Use of data
• Purpose when collected
• Authorization (other uses)
• Granted on a cotract (i.e. subscribers)
• Opt-out (related prods./services)
• (to be contd)

11

• Legal implications
• A)Personalized communications (2/3)
• Data protection (contd)
• Data treatment
• In-house treatment of data
• No new DB, only filters
• New DB --- new declarations or legalization
• Outsourced processes
• Access to in-house DB eventually new DB
• Contract of outsource
• In clear ownership of data
• Only processing
• Document give-back / deletion after use

12

• Legal implications
• A)Personalized communications (3/3)
• E-communications regulations
• Spam /unsolicited email
• Major differences per country even within EU)
• Note if unsolicited ordinary mail - behaviour
  usually under DP laws

13

• Legal implications
• B)General communications (1/3)
• Physical support
• Paper (letters, leaflets) --- environmental laws
  (waste)
• Walls --- static - town planning
• - mobile - transport (u-ground taxis buses)
• Radio/TV
• Promotional materials --- value (gifts?)

14

• Legal implications
• B)General communications (2/3)
• Contents
• Regulated industries (i.e. pharmaceuticals, food,
  toys)
• Pre-author. Needed? Constraints?
• Re. Minors /childhood protection
• Advertising regulations
• Equality of gender minors violence, other.
• Comparative advertising
• Language
• Expressions used (ambiguous meaning, banned
  expressions)
• Co-oficiality/bilinguism need of local language?
• Example HSBC football, tatoos
  (modern/tradition)

15

• Legal implications
• B)General communications (3/3)
• Offers - usually regulated per industry / type of
  products
• Discounts / rebates / sales
• Regulatory constraints?, calendar constraints?
• Regulated or controlled prices? - need of
  pre-notification or pre-author.?
• Free test periods (services)
• Free samples / products
• labelling packaging specs.
• Contests, raffles, gambling
• Authorizations lottery monopoly?
• Taxes
• Other (depending on value of prize)

16

• Legal implications
• C)Competition related
• Ensure Competition Compliance
• Free competition (for how long?)
• SMP (who does it?)
• Monopolistic activities (i.e. ONLAE-Spain,
  Monopoly Authority-Italy)
• Transparency / certification (i.e.rules for
  raffles/ballots)
• Excessive obligations? (i.e. Tie-in clauses?)

17

• Positive attitude
• 1) Listen Sales Dept. needs
• 2) Listen Marketing Dept. plans
• 3) Keep mouth shut
• 4) Go back to Legal Dept. territory
• 5) Think, think, think
• 6) Find a way
• 7) Speak

18

• GOOD LUCK !!!

19

• THANK YOU

mja_at_cabolivo.com