“Hopi”, the new generation loyalty program, has a unique structure in Turkey, and even its inventor claims that this program is a first in the world. This case study examines the success achieved in the first years of the program and how it provides advantages in terms of price from both consumer and member merchant side.
The Boyner Group is Turkey’s largest publicly-held non-food and non-electronic retail group and Hopi was created by Boyner Group.
Hopi is the first loyalty program which has a unique structure in Turkey and launched in 2015. Developing such a program in Turkey where competition is very high in every sector and profit margins are decreasing day by day due to intensive competition is very important both for consumers and member merchants.
Hopi is a mobile application that does not have a physical card and only works on mobile devices (tablets, etc.) with smartphones. It can be downloaded for free from the Appstore and Google Play, and there is no annual subscription fee. The Boyner Group had over 15 million registered customers by itself prior to the launch of Hopi.
When Hopi users spend over a certain amount (this amount varies from member merchants to member merchants or even from different campaigns of the same member merchant), the point “Parac?k” is earned for each level of this amount. Users are then able to spend these points on member merchants under the related terms and conditions. If users spend over a certain amount of accumulated points, the points increase according to the amount they spend.
Hopi has important customer relationship management (CRM) and big data software in the background. Hopi is creating value for customers and brands by personalizing their campaigns by taking advantage of ‘big data’ with its technology. Special software behind the Hopi application matches the needs and expectations of customers with the thousands of offers of brands in the most appropriate way. Thus, Hopi customers will be able to follow and benefit from most attractive campaigns and offers that fit their own preferences and habits. On the other hand, brands will increase their productivity by delivering appropriate products and offers to customers. Hopi constantly renews itself with new technologies and different surprises.
While Hopi member-consumers increase purchasing power by using appropriate campaigns for their own needs and shopping habits, member merchants increase traffic, sales, turnover and gain new customers by offering the right campaign at the right time. Having established a ‘win-win’ relationship between the member-consumers and the member merchants, this situation clearly explains why Hopi was quickly loved and spread. More than half of the Hopi consumers consider Hopi as an important part of their shopping and they are actively using it.
There are member merchants, who managed 20 percent traffic increase and 50 percent turnover increase, thanks to the successful Hopi campaigns. The Hopi programme’s total transaction volume reached 700 million TL (175 million euros). Hopi member consumers earned 30 million ‘points’ (7.5 million euros) in their purchases and with various campaigns, they spent their points 1.6 times more valuable as 50 million ‘points’ (12.5 million euros).