FRANCE: FUTURE OF LOYALTY CARDS

Article Abstract:

Surveys show that within a year half of the loyalty cards which only offer programs for accumulating points for gifts are abandoned by customers, and 80% are abandoned after three years. A study by the Chronos group shows that these cards are not used in a regular way and that the consumers who hold the most cards (35% of the French) are the least loyal clients. Michel Koch, in charge for the electronic wallet mission for the Savings Bank's national centre, says that the challenge is to change customers from ones who is passively loyal, going to a store by habit, to ones who are actively loyal, going to a store by choice because they find it advantageous. The future of loyalty cards lies in the development or related services: payment, credit, electronic wallets, money withdrawal, picking up tickets for shows and concerts, telephone, Internet access, reserved offers, and others. Another path to exploit is the interoperability between retail networks, such as the Cofinga cards which can be used at Geant, Galeries Lafayette, and BHV, and the Pinault-Printemps-Redoute group's Finaref card which can be used to pay at La Redoute, Printemps, FNAC, and Conforama.

Forecasts, trends, outlooks, Marketing procedures, Research Findings, Marketing/Advertising Methods, Magnetic Cards, Magnetic and Optical Recording Media Manufacturing, Electronic components, not elsewhere classified, Brief Article

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FRANCE: AUCHAN AMBITIONS WITH ACCORD TELEPHONE

Article Abstract:

Accord Telephone, the telephone services joint company of Auchan and Belgacom is banking on a FFr 150mn turnover in 2001. The company, which plans to add Internet and all-inclusive packages in the future, turned over FFr 100mn with 25mn calls handled in 2000. Accord Telephone hopes to attract four out of ten holders of the Accord card which records 1.5mn holders among Auchan customers. Almost one quarter of these people subscribed to the national offer already (FFr 0.18 per minute during the weekend and bank holidays, and after 9 pm during the week). Accord Telephone now presents a local communication offer worth FFr 0.11 per minute during the same periods.

Strategy & planning, Long Distance Telephone Svc, Local Telephone Service, Telecommunications services industry, Telecommunications industry, Long distance telephone services, Local telephone services

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FRANCE: DIGICALL PHONE OVER THE INTERNET OFFER

Article Abstract:

Digicall targets 100,000 active users with the 2mn cards it plans to launch by the end of 2000. The French company targets a 50% market share in the future, out of a potential 5-6mn Internet users in France. The result of a technical partnership with Ericsson, Digicall recently emerged as the first Internet over the phone service in France. The system is based on a standard pre-payment card which allows the user to call from a fixed phone terminal to another, from a fixed terminal to a portable phone, and from a portable terminal to a fixed telephone. The card may also be used from the company's Internet site (www.digicall.fr), in which case the user is given three times more time compared to the standard service.

Product introduction, Telephone Communications, Telephone services

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