How Unused Reward Points Help Communities – Brian Almeida

It has had a gradual begin. Began a decade in the past, Brian has been capable of elevate solely Rs. 2 crore. However he’s hopeful the tempo will choose up. Together with his expertise of operating extremely profitable loyalty packages for motels, banks and airways, Brian believes the time for quick progress is across the nook. 

In a free-wheeling chat with Benedict Paramanand, Editor of SustainabilityNext, Brian Almeida shares present developments and the way he plans to scale. Edited excerpts:

Utilizing unused property for good—it’s a tremendous idea. How lengthy have you ever been operating this?

We are actually getting into the tenth yr. For the final 9 years, we’ve targeted on backend expertise and “piping” to work with varied loyalty packages. Immediately, we’ve got tied up with virtually all of the banks within the nation, permitting bank card members to donate reward factors to social causes.

I noticed a determine in your web site about Rs. 15,000 crores in unused reward factors. How a lot of that have you ever been capable of appeal to? 

We’re nonetheless a drop in that ocean, however it’s a large ocean. Banking reward factors alone add about Rs. 8,000 crore value of factors to wallets yearly. Whereas some are redeemed, our estimate is that 40% to 50% of these factors find yourself expiring and going unused. Our hope is to channelize even a single-digit share of that to maintain our NGO companions.

As soon as they expire, they’re of no use to anybody, proper?

When loyalty factors expire, the issuing model writes them again into their steadiness sheets. Nobody features besides the model. Nevertheless, the true intent of a loyalty program is for members to eat the model’s companies. It is mindless to spend money on the expertise and advertising for a program in case you simply let factors expire. 

It means you aren’t participating your greatest, high-value prospects. Analysis reveals that when members interact and redeem factors, they really turn into extra loyal to the model. In the long term, simply placing expired factors again on the steadiness sheet doesn’t work out.

How do you see world and Indian developments relating to loyalty packages for social good?

It’s an rising pattern. We’re within the ‘sixth avatar’ of loyalty packages. They’re now evolving to help ESG (Environmental, Social, and Governance) initiatives as properly. Factors are used to reward previous conduct, however they will additionally incentivize future desired outcomes. Manufacturers are actually utilizing them to encourage sustainable decisions—like utilizing reusable, recyclable, or refillable merchandise.

Frequent flyer packages are forward of the curve right here. For instance:
Etihad has “Acutely aware Decisions,” incentivizing corporates to decide on low-carbon flights.
Lufthansa has “Inexperienced Fares.”
Qantas gives factors for each greenback offset in carbon packages.

In retail, H&M gives garment assortment in India. We additionally just lately launched The Lalit Loyalty with The Lalit Resorts. Their program focuses on governance (information privateness), social (DEI and inclusivity), and the atmosphere (planting timber).

What are your future plans? 

Whereas we began with social NGOs (well being and schooling), our future focus is shifting towards the ESG area. We’re launching a group program for sustainability that gives factors for getting energy-efficient home equipment (like licensed ACs or fridges), utilizing inexperienced gasoline, or selecting inexperienced mobility. Manufacturers can be part of this program to supply incentives with out having to launch their very own particular person platforms.

What sort of numbers have you ever achieved up to now?

To this point, we’ve got channelized near 95 million factors to NGOs, which interprets to about Rs. 2 crores. It’s nonetheless a nascent, rising enterprise, and adoption takes time, however it’s rising.

It’s nice for model promotion too. How do you promote Factors for Good?

Largely via our e-newsletter and comparable direct channels.