Loyalty Management Netherlands Transforms Its Air Miles Program

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The Situation

Loyalty Management Netherlands (LMN) has run its Air Miles consumer loyalty program since 1994. Air Miles is the largest savings program in Holland, with millions of members who earn and redeem points for products they purchase. Air Miles operates with the slogan: “Van kleine wens tot grote droom” (“from small wishes to big  dreams”). The six primary brands participating in the program are Albert Heijn, Shell, V&D, Praxis, Gall & Gall and Etos. LMN had long taken a custom approach to its systems landscape. However, the company wanted a faster, more flexible and cost-effective solution, which would help it achieve its strategic objectives of increasing membership and expanding activity among current members.

The Solution

LMN chose a standardized, packaged loyalty management solution from SAP and selected Capgemini to implement the new system and provide support and maintenance over a five-year period. The project involved replacing the company’s entire technology landscape – software and hardware – including the migration of 1 billion transactions and the customer database, as well as the implementation of partner connectivity, CRM system, reporting applications, Air Miles website and all interfaces.

The Result

Air Miles is by far the biggest loyalty program in the Netherlands and is growing: Last year the number of members increased from 3.3 million to 3.7 million. The new system enables LMN to speed up customer transactions, which are now completed in less than one second, and to provide a more user-friendly website. Implementing SAP by Capgemini is part of a strong improvement program. For example, improved flexibility makes it easier to add and upgrade features and functionality, such as mobile apps and social media. The new solution also enables LMN to run a greater number of personalized campaigns to help drive new membership and increased activity among current members.