"A rewards programme is of little value unless it makes a meaningful contribution to its partners. This is achieved through the satisfaction of its partners' customers, in turn resulting in increased profitability for those businesses. A successful rewards programme is effectively the 'glue' of the organisation," says Paul Harris , CEO of FirstRand Bank.

Statistics released this week by the eBucks Rewards Programme reinforce this statement, indicating strong growth of the FirstRand Group's youngest initiative. This is despite certain sentiment that such programmes are a dying marketing attempt.

Over the last year, the eBucks member base grew 31% from 495 000 in December 2002 to 649 000 in December 2003, with the average earn activity of each member also increasing substantially. As a result, the total number of eBucks allocated to the member base increased 33% to R9.6 million worth of eBucks allocated in the month of December 2003 alone. Despite increasing redemption of eBucks by members, the total number of eBucks now in circulation is still valued at R168 million.

A meaningful indication for the FirstRand Group, of the programme's success, is the impact it has had on divisions of the group that are programme partners. In the last year, eBucks partners have seen a substantial increase in the profitability and retention of customers who are also eBucks members.

Member spend activity also increased substantially. Growth trends for the eBucks Shop, as well as improved service level agreements and the addition of new shopping partners saw R26 million worth of eBucks spent in the last six months as of 31 December 2003. This is a 110% increase compared to the six months to 31 December 2002.

Member spend activity is seen to be one of the strongest indicators of the programme's success, says Deon Olivier , head of the eBucks Rewards Programme. "Success is only partially achieved when members are earning. It is when they experience the rewards and interact with the programme on a personal level that the programme is doing what it should."

In line with general consumer trends, spend picked up noticeably in the last three months of 2003 as shoppers rushed to buy Christmas gifts from the over 900 products available in the eBucks Shop. The total eBucks spent in December 2003 reached an all time high of R6.2 million, a more than 100% increase, compared to the amount spent in December 2002.

"It was noted that 60% of the eBucks earned in the month of December were spent in the same month. One of the most popular products being the newly introduced Lotto subscriptions with R506 948 worth of Lotto tickets sold since November 2003. This strategic partnership is certainly proving its worth for, in terms of value, this product is surpassed only by MTN prepaid airtime and Woolworths vouchers," explains Olivier.

"eBucks has certainly proven its value to the group and we look forward to seeing not only its continued success, but also what innovations will be introduced this year, keeping it ahead of the rewards programme pack," says Harris

About eBucks:

eBucks, the rewards programme offered by First National Bank (FNB) and RMB Private Bank, is acknowledged as one of South Africa's leading rewards programmes with highly active members spending in excess of 80% of the eBucks earned in any given month.