FedEx moves local markets to region-wide loyalty plan

The programme will replace local loyalty schemes which currently operate differently in national markets. "With a consolidated programme, there is a common brand identity, which will have a greater impact and awareness among customers," commented Malcolm Sullivan, VP of marketing and communications for FedEx's Asia Pacific division. The FedEx Reward Centre Programme is currently being piloted in Singapore, China and Japan prior to rollout over an unspecified period across Asia-Pacific The scheme's online platform will also make it cheaper to run than existing programmes, Sullivan said, with savings from bulk purchases and sharing capital equipment and operations. Combining learning together with standardising programme mechanics and logistics should also make the new operation more effective, he added. Under the new programme, FedEx awards points to customers enrolled in the scheme for each shipment they make. The points can be exchanged for gifts or rewards selected on a special FedEx website. Although customers can save up points, they will expire after a certain amount of time, depending on the country concerned. Local markets will be able to tweak the programme to suit their needs. "FedEx's main objective has always been to communicate differentiated features of service and encourage trial," Sullivan said. "While most businessmen do not have a lot of time to coupon clip, we aim to make our offers clear and relevant." FedEx carefully monitors its marketing investments to extract value for money, he added. "We are fanatical about measurement. We never do any promotion without a specific measurable objective. And if the results prove sub-optimal, we make the hard decision to stop investing and move on to something that will deliver a better return."