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NCL
NCL
New Clicks - Clicks launches credit card as extension of loyalty card
NEW CLICKS HOLDINGS PRESS RELEASE
New Clicks Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1996/000645/06)
JSE share code: NCL
ISIN: ZAE000014585
("New Clicks")
Clicks launches credit card as extension of loyalty card
Cape Town - Health and beauty retailer Clicks has introduced a branded
credit card as an extension of its successful Clicks ClubCard loyalty
programme.
David Kneale, chief executive of Clicks parent New Clicks Holdings, said a
Clicks-branded credit card is a logical extension of the ClubCard
programme. "We have adopted the approach of using existing loyalty to
launch credit, as opposed to the spate of recent credit card launches where
credit is being used to leverage customer loyalty."
Clicks ClubCard shoppers are rewarded with points which are translated into
"cash-back" vouchers which can be redeemed for any merchandise within
Clicks.
Kneale said that over the past year alone Clicks has given back close to
R100 million in cash-back vouchers. "Our customers understand the value of
cash-back and the new credit card gives them the opportunity to maximise
this benefit."
Clicks ClubCard credit card holders will earn double points when using
their credit cards for purchases at Clicks stores and ClubCard points for
all other purchases.
"Basically we are now offering Clicks ClubCard benefits for shopping
outside of Clicks. These points are then converted into Clicks ClubCard
points and paid back in cash-back vouchers. As a Visa affiliate our credit
card will be accepted by over 112 000 merchants throughout the country," he
said.
Clicks ClubCard has been operating for ten years and is one of South
Africa"s most respected loyalty programmes, with more than two million
active members. Over 70% of the Clicks turnover is generated from ClubCard
members, highlighting the level of loyalty of the customer base.
The Clicks credit card will be issued under licence of FirstRand Bank
Limited.
"Our decision to partner with FirstRand Bank is based on their extensive
experience in managing large volume branded credit cards, their
understanding of loyalty programmes and the fact that their technology can
support the ClubCard points system," said Michael Harvey, managing director
of Clicks.
"The Clicks credit card will initially be targeted at existing ClubCard
holders. Our strategy is to generate incremental turnover growth through
the introduction of credit, while reinforcing customer loyalty. While the
Clicks credit card does not replace the Clicks ClubCard, the same loyalty
benefits and usability will be passed on to our credit card users."
Harvey said extensive research had been undertaken by Clicks over the past
six months to evaluate the most appropriate form of credit and to assess
customer response.
"Clicks has seen a changing trend in consumer purchasing behaviour with a
growth in credit card spend as a proportion of our sales. This has
reinforced the decision to introduce a credit card to complement the
existing ClubCard loyalty offering. Currently around 25% of Clicks sales
are on credit cards."
Jan Kleynhans, chief executive of FirstRand Bank Card division, said that
over the past few months a number of new credit cards had been introduced.
"Many of these cards promise to revolutionise the credit card market by
addressing traditional revenue streams like offering free cards.
"Unfortunately most of these cards have failed to address one key
component, namely real customer value. The Clicks offering provides
cardholders with a tangible benefit in the form of real cash back, and not
just marketing hype."
Ends
Issued by Tier 1 Investor Relations on behalf of Clicks
For further information contact
Graeme Lillie
Tier 1 Investor Relations
Tel (021) 702-3102
Cell 082 468 1507
Date: 26/09/2006 10:47:06 AM Produced by the JSE SENS Department
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