Johnnic Holdings, the media, entertainment and telecommunications company, has bought 40% of FirstRand`s eBucks.com customer appreciation programme (CAP) to create a joint programme with a base of over 7 million clients.
The goal is to create the largest and most effective customer loyalty scheme in South Africa.
Johnnic said it would merge the loyalty schemes of its various group companies into the eBucks programme, as well as launch new customer appreciation programmes powered by eBucks.
Of Johnnic`s stake in eBucks.com, MTN, Johnnic`s cellular telephone company, has acquired 30% and Johnnic e-Ventures (JeV), the group`s online division, has bought the remaining 10%.
Firstrand has retained just over 50% of eBucks.com, with a percentage going to staff.
eBucks.com is FirstRand`s financial services hub that will give users access to the complete FirstRand online product portfolio. eBucks.com also encompasses an innovative CAP that rewards account holders for a wide range of transactions within the FirstRand group. In addition, eBucks.com has spawned eBucks, South Africa`s first e- currency. eBucks can be spent online, without divulging personal banking details at participating merchants.
Announcing the deal, Johnnic Group CEO Paul Edwards said the R40-million deal would be implemented over the next 12 months. All rewards earned under Johnnic owned customer loyalty programmes, including MTN CallAwards and Exclusive Books Fanatics, would be converted to the eBucks e-currency during this period.
As a result of the deal, R120 million worth of eBucks will be injected into consumers` pockets within 12 months of the merger. "This is good news for our companies and good news for the joint customers of both Johnnic and FirstRand," said Edwards.
FirstRand Banking CEO Paul Harris said: "Our combined customers will now be able to earn rewards on a larger portion of their expenses, both discretionary and non- discretionary, than ever before. Whether they pay their bonds to FNB HomeLoans or make a call through MTN, they will be rewarded with eBucks - an e-currency that can be spent or invested at their discretion."
Harris also pointed out that the eBucks CAP will continue to be run on a banking information technology platform. "This allows the highest security, as well as same-day reconciliation of all rewards earned and spent."
Said Harris: "These three attributes of the new, combined CAP - the business scope of its partners, the wide earning and spending potential offered to customers, as well as the customer-friendly technology - set it apart from any current SA loyalty scheme. It also spurs our belief that this new CAP could be the largest such scheme in this country within the next year or two."
JeV CEO Neil Jacobsohn said the deal would bind the Johnnic group into a single, powerful customer appreciation programme. Our customers can only benefit, because none of the group companies would be able to offer such a range and depth of rewards on their own."
MTN Chief Executive Bob Chaphe said involvement in eBucks.com would provide MTN callAwards members with even greater benefits. "The MTN callAwards programme is dynamic, fun, simple and way ahead of the pack in terms of the technologies employed to make the programme seamless for members to interact with," said Chaphe. "MTN callAwards has already achieved two global firsts by rewarding members on incoming calls, and by WAP-enabling the callAwards website. The eBucks.com CAP provides an additional platform for leveraging the innovative technologies within the MTN stable, such as interactive voice response, interactive kiosks and call centres."
Harris pointed out the merged operations would create the opportunity to actively encourage cross selling. But he stressed that at no stage would the privacy and security of clients of any of the shareholders be compromised.
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