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WF: Heartiest congratulations on being recognized for delivering the best loyalty program in the non-banking financial space! What were the criteria and who did you compete with to emerge the winner?
Bhavdeep: Thank you. It is indeed a Privilege for us to have won this prestigious award the first time we chose to participate in it. Out of a larger number of applicants, there were 4 shortlisted nominations in the "Non-Banking Financial Service" category which included a couple of Mutual Fund and Life Insurance companies.
Each nomination which was received was researched and thoroughly evaluated by the Core Advisory Members of the Awards Committee. Assessors from a select panel of the Core Committee members got in touch with every nominee and evaluated each entry on a 5 point parameter -
Business Perspective Addressed by the program/campaign Customer Engagement Use of Technology Impact of the Program/Campaign How is the Program / Campaign Unique in the Industry
Each nominee was then evaluated by a panel of industry professionals who rated the applications on the above criteria on a 25 point scale to select the final winner.
WF: Most leading AMCs have loyalty programs for their distributors. What in your opinion sets the ABFS Privilege Club apart? What aspects of your program have received the most positive feedback from distributors?
Bhavdeep: The ABFS Privilege Club enjoys strong loyalty and patronage from its members who have benefited as members of this club. This is the only program in the industry that is truly a loyalty program that rewards consistent AUM growth, while focusing on the long term development and financial wellness of the partner and his/ her family.
Bouquet of most comprehensive benefits offered under the SKY theme,
Success: Annual Conventions
Knowledge: Management Development Programs, Business periodicals, Expert Friday call
You: Life Insurance Cover, Medical Insurance family floater, Golden Age Plan (Retirement benefits), Child scholarship, visiting cards & stationery
The above features offered by Privilege Club ensure that the IFAs receive social security benefits similar to corporate employees. The Club points calculation is fair and transparent that rewards progressive as well existing loyalty with points scored for existing AUM, and bonus points for incremental gross sales.
Continuous improvements based on member feedback - The program was revamped with many features added this year based on feedback from our IFA partners. This includes introduction of Management Development Programmes for knowledge enhancement through professional courses.
Digitization - Privilege Club registration was moved from paper to online for faster turnaround and accuracy of data capture. Use of Microsite for conventions; WhatsApp; mailers, SMS etc.
We are the only Mutual Fund to offer a retirement savings plan wherein we contribute an additional amount towards the IFAs retirement savings to help him plan a comfortable retirement for himself, as he does it for his valuable clients.
WF: How many members do you now have in your Privilege Club? How has this number moved over the last couple of years?
Bhavdeep: We had about 8400 members in the Privilege Club in 2011-12. This has grown to 13,000+ members in the program till Dec15 and the number is increasing every month. Post introduction of online registration, we have witnessed a healthy growth in the membership of Privilege Club.
WF: Is there evidence that establishes a strong link between membership of loyalty programs and increased market share? In what ways does a loyalty program driven deeper relationship translate into business opportunities for the AMC and the distributor?
Bhavdeep: Yes. There has been a strong link between Privilege Club membership and increased market share. We enjoy twice as much AUM market share from Privilege Club IFAs as compared with non members. Most of our PC registered IFAs have shown strong loyalty in terms of existing and incremental market share, which has been mutually beneficial. Such advisors have enjoyed steady growth in club levels driven by incremental gross sales and AUM growth leading to higher club eligibility and increased benefits.
WF: There is one view in our industry that suggests that performance and commissions are all that matter, and there is another view that makes the case for holistic relationships driven by quality loyalty programs. Is it finally all about performance and commissions?
Bhavdeep: Commissions are important but not the only business driver. As long as the brokerage offered to partners is competitive, and the performance is maintained consistently using disciplined investment processes like we do at Birla Sun Life Mutual Fund, a loyalty program like Privilege Club goes a long way in establishing a holistic relationship with our IFAs. Through its unique benefits like Life Insurance, Medical Insurance, MDPs, Retirement benefits, Child scholarships etc the Privilege Club provides its members a sense of social security, establishes a connect with their family and supports their professional growth through knowledge initiatives.
WF: What's next for your award winning loyalty program? What more can IFAs expect from ABFS Privilege Club and what does it take to become a member?
Bhavdeep: The Core ABFS Privilege Club team is on the constant lookout for ideas to make this a better experience for IFAs. Some of the areas in focus include increased use of digitization, some exciting contests for our partners and areas such as family code benefits.
Going forward, our partners can expect a continuously improving program that seeks to reinvent itself by working on IFA feedback and providing benefits that helps the IFA nurture and grow his business. We have some more plans in the works but I would not like to spill the beans right now, so you can watch this space for more.
Becoming a Privilege Club member is very easy. IFAs empanelled with Birla Sun Life Mutual Fund are eligible to apply for ABFS Privilege Club by logging in as an advisor on our website.
We also look forward to greater participation of our IFA partners who can avail of the Privilege Club Benefits on offer for them and their family as they become a part of the BSLAMC family.
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