LIVIN’POIN AS A LOYALTY ECOSYSTEM: A STRATEGY PROPOSAL TO IMPROVE CUSTOMER STICKINESS AT BANK MANDIRI

• Main Author: Ichsan Nugraha, Rendy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/74591
• Institution: Institut Teknologi Bandung

The banking industry in Indonesia is highly competitive, with several large banks competing for market share and customers. Bank Mandiri, as one of the largest banks in the country, faces stiff competition from other major players in the banking industry as well as from fintech startups. One key strategy for banks to compete in this market is to increase customer stickiness. By building strong relationships with customers, offering them various products and services that meet their needs and preferences, providing the best customer service and support, and offering customers special loyalty programs, banks can encourage customers to stay with them in the long term and increase the bank's revenue and profitability. Bank Mandiri has Livin'poin as a loyalty platform to attract and retain customers to continue transacting and adding to their portfolio. About 53% of Bank Mandiri customers considered as Livin'poin users (having checked their points and redeemed Livin'poin rewards) have better portfolio balances and transaction volumes than non-Livin'poin participants, who even tend to close their accounts. Bank Mandiri needs to be aware of these issues, so that business plans and targets, loyalty programs related to products and transactions, the use of loyalty ecosystems, and the development of platform features, are prepared with solid strategies to increase the number of Livin 'poin users and maintain Bank Mandiri customer stickiness. The strategy to increase the number of Livin'poin users is to understand the problems and expectations of Bank Mandiri customers who are the main target of this research. It begins with several analytical approaches to better understand the internal conditions through an analysis of Livin'poin strengths and weaknesses, as well as an internal analysis to identify resources that can become competitive advantages. This is followed by an analysis of opportunities and threats from the external perspective and how to optimize existing conditions, an analysis to understand the external conditions from the customer's point of view, and benchmarking of competitor conditions. Several approaches through theories and analyses of internal and external conditions are then processed according to research methodology standards to obtain a conclusion in the form of proposed solutions. The proposed solutions are expected to provide recommendations related to product communication strategies and product development strategies to increase the number of Livin'poin participants and maintain the Bank Mandiri customer Stickiness.