It has had a slow start. Started a decade ago, Brian has been able to raise only Rs. 2 crore. But he is hopeful the pace will pick up. With his experience of running highly successful loyalty programs for hotels, banks and airlines, Brian believes the time for fast growth is around the corner.
In a free-wheeling chat with Benedict Paramanand, Editor of SustainabilityNext, Brian Almeida shares current trends and how he plans to scale. Edited excerpts:
Using unused assets for good—it’s an amazing concept. How long have you been running this?
We are now entering the 10th year. For the last nine years, we’ve focused on backend technology and “piping” to work with various loyalty programs. Today, we have tied up with almost all the banks in the country, allowing credit card members to donate reward points to social causes.
I saw a figure on your website about Rs. 15,000 crores in unused reward points. How much of that have you been able to attract?
We are still a drop in that ocean, but it is a massive ocean. Banking reward points alone add about Rs. 8,000 crore worth of points to wallets every year. While some are redeemed, our estimate is that 40% to 50% of those points end up expiring and going unused. Our hope is to channelize even a single-digit percentage of that to sustain our NGO partners.
Once they expire, they are of no use to anyone, right?
When loyalty points expire, the issuing brand writes them back into their balance sheets. No one gains except the brand. However, the true intent of a loyalty program is for members to consume the brand’s services. It makes no sense to invest in the technology and marketing for a program if you just let points expire.
It means you aren’t engaging your best, high-value customers. Research shows that when members engage and redeem points, they actually become more loyal to the brand. In the long run, just putting expired points back on the balance sheet doesn’t work out.
How do you see global and Indian trends regarding loyalty programs for social good?
It is an emerging trend. We are in the ‘sixth avatar’ of loyalty programs. They are now evolving to support ESG (Environmental, Social, and Governance) initiatives as well. Points are used to reward past behavior, but they can also incentivize future desired outcomes. Brands are now using them to encourage sustainable choices—like using reusable, recyclable, or refillable products.
Frequent flyer programs are ahead of the curve here. For example:
Etihad has “Conscious Choices,” incentivizing corporates to choose low-carbon flights.
Lufthansa has “Green Fares.”
Qantas offers points for every dollar offset in carbon programs.
In retail, H&M offers garment collection in India. We also recently launched The Lalit Loyalty with The Lalit Hotels. Their program focuses on governance (data privacy), social (DEI and inclusivity), and the environment (planting trees).
What are your future plans?
While we started with social NGOs (health and education), our future focus is moving toward the ESG space. We are launching a community program for sustainability that offers points for buying energy-efficient appliances (like certified ACs or refrigerators), using green fuel, or choosing green mobility. Brands can join this program to offer incentives without having to launch their own individual platforms.
What kind of numbers have you achieved so far?
To date, we have channelized close to 95 million points to NGOs, which translates to about Rs. 2 crores. It is still a nascent, emerging business, and adoption takes time, but it’s growing.
It’s great for brand promotion too. How do you promote Points for Good?
Mostly through our newsletter and similar direct channels.
