Dec 5, 2007

Behind the scenes: How Maybank and Baskin Robbins increased credit card usage for low value purchases

This case study should be of interest to anyone that wants to get merchants to encourage customers to pay by card rather than cash for low value transactions. It should be of special interest to people involved with contactless cards (even if this case study is not about a contactless deployment).

"Maybank wanted to see greater use of credit cards for everyday purchases, and Baskin Robbins wanted to encourage customers to spend more," says Welcome's Pierre Boces. "A promotion was designed to accomplish both objectives at the same time."

Maybank helped Baskin Robbins design a promotion which delivered an instant offer when customers paid with their Maybank card at Baskin Robbins. For every 20 ringgits (Malaysian dollars) in cumulative spending during the promotional period, consumers could buy a single junior scoop of ice cream for only 99 sen (cents), a big saving for Maybank customers.

Run by all Malaysian outlets of Baskin Robbins, the promotion lasted six months, from October 2006 to March 2007. It was advertised at Baskin Robbins outlets and in Maybank’s quarterly news letter, the Kard Shoppe, which cardholders get with their monthly statements.

The promotion was successful for both Baskin Robbins and Maybank. Coupons were redeemed at the rate of 53% while the average spending on Maybank cards at Baskin Robbins climbed from 36 Ringgits two months before the promotion to 58 ringgits two months into the promotion. It stayed at 59 ringgits two months after the end of the promotion.

Download the case study here.

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