Hoping to replicate in Latin America the success of a payment card-based loyalty program similar to Canada’s Air Miles, Alliance Data Systems Corp. on May 5 said that its LoyaltyOne unit will play a key role in Banco do Brasil’s recently announced national rollout of Dotz, a broad payment card-based loyalty program.
Launched in 2000 as an online, loyalty-based coalition-marketing program, Dotz in recent years has expanded to include point-of-sale merchants and was the focus of a recent successful pilot in Belo Horizonte, one of Brazil’s largest cities, Alliance Data said in a press release.
Consumers who join the Dotz program earn rewards points redeemable for discounts and merchandise for purchases made at all merchants that are part of the coalition.
Banco do Brasil, the nation’s largest bank, will be the program’s “anchor coalition partner” and the exclusive financial-institution participant in a multiyear deal that enables the bank’s credit card customers to earn rewards at dozens of different types of merchants across the nation, according to the release. The program will roll out nationally during the second quarter of this year.
Banco do Brasil, with 30 million customers and 9 million active credit card accounts, plans to use the program to encourage greater credit card account activation and use, the company said in its release.
Alliance Data’s LoyaltyOne unit has a “sizeable equity stake” in the national launch and will provide “strategic business support” in conjunction with Brazil-based Companhia Brasileira De Servicos De Marketing, which operates Dotz, Alliance Data said.
During an April 21 conference call with analysts to discuss its first-quarter earnings, Bryan Pearson, LoyaltyOne president and CEO, said he believed the opportunity to expand a coalition-based loyalty program in Brazil “equates very much to what we’ve experienced in the Canadian market.”
The company also is looking to make similar investments in loyalty schemes “in other interesting markets,” he added.
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