HSBC taps Loyalty Lab for loyalty, CRM
Loyalty Lab Inc. has partnered with HSBC Finance Corp.'s card and retail services business.
The partnership allows Loyalty Lab to provide loyalty and CRM programs to retailers offering private label and co-branded credit cards through HSBC. HSBC's more than 70 merchant partners include Best Buy and Neiman Marcus. Executives with both HSBC and Loyalty Lab believe the partnership will improve customer retention for retail partners and may also increase sales.
“We recognize that there are changing trends in loyalty programs,” said Cindy Savio, assistant VP of public affairs with HSBC. “We know that our merchant customers, as well as their consumers, are looking for additional value to their programs.”
“By partnering with us, HSBC can offer more flexible solutions to their clients and give clients the ability to offer better loyalty programs,” said Mark Goldstein, CEO of Loyalty Lab. “We're also in the marketing automation business, so HSBC also gets a low cost CRM system. They can use that not just for customers that are signed up for private label credit card services but for all customers.”
Goldstein added that offering a better loyalty program also makes HSBC more competitive with other banks offering private label credit card services and gives Loyalty Lab access to hard-to-reach clients.
“These are really hard brands to partner with,” Goldstein noted. “When you think of these large retailers, they are cautious about working with a firm that hasn't been around for long, so by partnering with HSBC there's a lot of trust that comes with the relationship, and the fact that HSBC is subsidizing our services makes it win-win; now their clients get CRM and automated marketing at a discounted rate.”
One of HSBC's clients has been working with Loyalty Lab for about a year. With this announcement, the others are following suit.
Loyalty Labs offers loyalty program management, e-mail, campaign management and incentives on-demand. Clients include 1-800-Flowers.com, Spencer Gifts and Bally Total Fitness.