Introduction of a B2B-Level-Loyalty Program
Mondi Group / Sommersemester 2017
This project examines the introduction of a B2B-Level-Loyalty-Program for Mondi's customers. Mondi is an international packaging and paper group, employing around 25,000 people across more than 30 countries. The key operations are located in central Europe, Russia, North America and South Africa. Mondi is fully integrated across the packaging and paper value chain - from managing forests and producing pulp, paper and compound plastics, to developing effective and innovative industrial and consumer packaging solutions. The concept of the loyalty program will strengthen loyalty of the customers in order to create even stronger business relationships.
In order to evaluate on possible designs of the proposed loyalty program the project has been divided into three main phases. Phase one was the research on proven loyalty programs, as well as a customer survey among Mondi’s main customers of five different industries and the analysis of the sales process. Phase two included different solutions for the design of the loyalty program which were mainly based on the evaluated data of the research, the customer survey and the analysis of the sales process. Since various solutions are possible three scenarios have been built in order to emphasize the advantages and the disadvantages of each variant. By having a look at the pros and cons of all methods a relative weighting scenario became evident to be the best one because of fairness and transparency. Phase three contained the creation of a Business Model Canvas, outlining the value proposition as well as other important aspects of the introduction of the loyalty program.
For aiming the objective to introduce the loyalty program for Mondi’s customers successfully the program needs to be well structured and very transparent. Therefore, different status levels were formed and within each level several rewards are offered. Customers will be measured upon fixed criteria which are easy to communicate. For each criteria customers receive points based on their performance. In order to move forward to a higher status level, they have to improve their points. Regarding the distribution of the points and inspection of the status level customers will have access to created function on Mondi’s website.
First and foremost, it can be said that in this case a relative weighting method would be the most favorable option for introducing a loyalty program. This specific method is accompanied by customers’ needs and aims the objective of clearness. Of course, the whole management team of Mondi may reflect the functioning of the loyalty program well before the implementation. Additionally, a special marketing strategy is essential in order to make the program popular. Regular communication within the loyalty program represents the last advisable point.
Mondi Group GmbH
Philip Bradonjic, M.Sc., MIM (CEMS)
Franziska Metz, M.Sc.