Brd Group Société General

Bucharest University of Business and Economics

Business Administration Department

English Section

GRADUATION THESIS

MANAGING CUSTOMER LOYALTY AT

BRD GROUP SOCIÉTÉ GENERAL

Scientific Coordinator:

Prof.univ.dr. Iacob CĂTOIU

Graduate:

Monica Liliana PURDESCU

Bucharest,

2009

Contents

Introduction 3

1. Customer Loyalty 5

1.1. Customer loyalty, satisfaction and retention 6

1.2. Types of customer loyalty 8

1.3. Building loyalty 8

2. Banking on Customer Loyalty 8

2.1. Loyalty and profitability 8

2.2. Loyalty and debt 8

2.3. Measuring loyalty 8

3. Loyalty Programs 8

3.1. Categories of loyalty programs 8

3.2. Building loyalty into retail banking relationships 8

3.3. Managing customer loyalty 8

4. BRD Group Société General 8

4.1. The history of BRD Groupe Société Générale 8

4.2. The bank's activity 8

4.3. BRD's objectives and values 8

4.4. Financial results of the bank 8

4.5. "FIDELITIS" 8

The list of products and services included in the campaign 8

The mechanism of the campaign and the types of points 8

The prizes description 8

The advertising methods 8

The bank's performance 8

4.6. Customer Loyalty Dos and Don'ts 8

Conclusions 8

Bibliography 8

Introduction

Today, companies face their toughest competition ever. In order to get a better chance of outperforming competition, companies move from a product and sales philosophy to a marketing philosophy. The pillar of a well structured marketing orientation is a strong customer relationship. We should not forget that customers are always right.

I chose to write about customer loyalty and customer loyalty programs first because more and more companies, no matter their size, turn towards customers trying to improve their relationship whit them by making use of new and ingenious methods. Second, because, in our day to day life, we find ourselves in front of all kinds of loyalty programs from the simple tips, like "buy - one get one for free" or "buy three and you get a loyalty card", to a more complex situation when you get point for you purchases and in the end you receive a reward.

The purpose of this paper is to prove that companies which develop customer loyalty programs not only increase sales, but also improve customer relationship because along with acquiring new customers, retaining them should have a higher priority. To support this idea, I presented a case study about BRD Group Société General and their successful loyalty program called "Fidelities".

The bachelor paper is structured in four chapters. The first chapter's name is Customer Loyalty and it contains three subchapters: Customer loyalty, satisfaction and retention, Types of customer loyalty, and Building loyalty. This chapter defines loyalty and anther related notions like satisfaction and retention, explains the relations between them and their important, and presents briefly the methods used to build loyalty.

The second chapter is named Banking on Customer Loyalty and it includes three subchapters: Loyalty and profitability, Loyalty and debt, and Measuring loyalty. This chapter presents