Tomasz Makaruk
Loyalty programs for shareholders - Tomasz Makaruk

Loyalty programs for shareholders

Loyalty programs aimed at individual investors (also known as shareholders) are not very common in Poland. This is a market segment that is just developing. Apparently, the Polish market is not yet fully ready to implement such projects. In today’s article, I will present you the available loyalty programs aimed at shareholders, describing at the same time their significant advantages and disadvantages. This is my subjective assessment and please accept the following study through this prism of subjectivity.

Shareholders club

Tatry Mountain Resort company has become a pioneer in the world of loyalty programs for shareholders on the Polish market. The shareholder club was established at the end of 2012. The company provides services to mountain resorts in the territories of Central and Eastern Europe. The condition for joining the program is to have a minimum of 25 TMR company shares as of October 31.

How to join the program?

  1. Once a year, as of October 31, a shareholder must have at least 25 TMR shares purchased via the stock exchange (in Warsaw, Prague or Bratislava).
  2. By purchasing the required number of shares in the company, a shareholder acquires rights to rewards on the basis of a list of shareholders from the Central Securities Depository of Poland or on the basis of a confirmation from the company that purchased the shares for the benefit of the shareholder.
  3. The shareholder’s statement on the status of shares held must contain information such as shareholder’s full name, date of birth or PESEL number of the shareholder, ISIN code, as well as the number of shares purchased. The status statement must be confirmed by the investment vehicle company (seal and signature) if the brokerage account is not kept for the benefit of an individual.
  4. In order to take advantage of the benefits offered, you must register each year in a dedicated web application.
  5. The shareholder also acquires the rights to the rewards offered in the program in the subsequent accounting periods, provided that they document that the number of TMR company shares held has not fallen below the required limit specified in the table rewards for shareholders, which entitles them to the privileges guaranteed by the organiser, via an extract from the list of shareholders from the CSD or a confirmation from the company that purchased the shares for the shareholder.

The rewards offered in the Tatry Mountain Resort loyalty program depend on the number of shares the club member possesses.

The rewards offered to the participants include:

  • 25 shares – the participant receives 6 passes (to the centres managed by the organiser)
  • 40 shares – the participant receives 12 passes
  • 80 shares – the participant receives 25 passes
  • 130 shares – the participant receives 1 seasonal ticket
  • 250 shares – the participant receives 2 seasonal tickets
  • 500 shares – VIP status on the GOPASS card
  • 750 shares – VIP GOLD status on the GOPASS card
  • It is possible to purchase the FAST PASS service for 299 euros

According to the share price of September 20, 2021, when this text was written, the entry threshold for individual rewards ranged from PLN 4,250 to PLN 127,500.

Advantages of the program:

  • The company cooperates with all brokerage houses
  • Introducing the incentive factor to the program, making the type of granted benefits dependent on the number of shares held

Disadvantages:

  • Little variety among the benefits offered (in fact, only the “products” of the organiser’s company are on offer)

Programy lojalnościowe dla akcjonariuszy - Tomasz Makaruk

Orlen w portfelu (Orlen in the wallet)

PKN ORLEN company was the second company on the Polish market to introduce a structured loyalty program for its shareholders. The club with the graceful name “Orlen w portfelu (“Orlen in the wallet”) was established in 2018. Anyone who has owned a minimum of 50 PKN ORLEN shares (within one month) in one of the selected brokerage houses (PKO Biuro Maklerskie, mBank Biuro Maklerskie, Dom Maklerski BOŚ, Noble Securities Dom Maklerski, Santander Biuro Maklerskie, Alior Bank Biuro Maklerskie) can join the program.

How to join the program?

  1. A shareholder must have a brokerage account in one of the brokerage houses participating in the Orlen w portfelu program.
  2. You must complete the program registration form, which is available at each of the brokerage houses participating in the program.

The form can be filled in at a given bank agency, by phone or online, depending on the brokerage house: https://www.orlenwportfelu.pl/media/1207/dost%C4%99pnosc-orlen-w-portfelu-0920.pdf

The rewards offered to the participants are:

  • 10 grosz discount for each litre of EFECTA or LPG fuel*
  • 15 grosz discount for each litre of VERVA fuel*
  • 10% discount on non-fuel products available at ORLEN stations**

* up to the limit of 300 litres per month for EFECTA, LPG and VERVA fuels in total

** excluding alcohol, cigarettes and phone card top-ups

According to the share price of September 20, 2021, when this text was written, the threshold for entering the program was PLN 3,804.

PKN ORLEN has also introduced an educational project called Akademia Inwestowania (Academy of Investments). Its participants can gain valuable knowledge on the functioning of the capital market. Anyone interested can join the Academy, there are no requirements or restrictions. It is worth mentioning that the project is under the patronage of CFA Society Poland. Additionally, after successfully passing the exam, the participant receives a certificate signed by CFA Society Poland.

Advantages:

  • Introduction of a free educational platform

Disadvantages:

  • Limited choice of brokerage houses
  • Limits on the rewards offered
  • Few benefits from the offered fuel discounts (only 4–6 PLN is saved on one refuelling of a passenger car)

Energa in action

ENERGA decided to introduce the “Energa w akcji!” (“Energa in action!”) program only a year later than PKN ORLEN, i.e. in 2019. The condition for joining the program is to have a minimum of 1 company share, however, to have access to the privileges offered, you must have 500 Energa shares for a minimum of six months. The only participating brokerage house is the Brokerage House of PKO Bank Polski. MyBenefit, a provider of services in the field of non-wage benefits for employees, has also started cooperating with the “Energa w akcji!” program.

How to join the program?

  1. A shareholder must have an active securities account at the Brokerage House of PKO Bank Polski.
  2. The shareholder must complete, sign and submit the form at the Brokerage House of PKO Bank Polski.
  3. The right to the benefits is granted to each participant who has the right to a minimum of 500 shares on the basis of joint (co-)ownership for a continuous period of at least 180 days.

Rewards offered to the participants:

  • 10% discount on the comprehensive assembly service of an individual photovoltaic installation with a capacity of up to 10 kWp
  • up to a 50% discount on the products offered in the Energa online store
  • Free tickets to sports and cultural events sponsored by Energa
  • Investors joining the program who will also be new clients of the PKO Bank Polski Brokerage House will be temporarily exempt from the fees for maintaining the investment account
  • Free membership in the Stowarzyszenie Inwestorów Indywidualnych (Association of Individual Investors) with all of its benefits (including access to educational materials and stock market analyses)
  • Education in the form of a series of five training and workshop meetings, which will take place, among others in Gdańsk, Warsaw and Wrocław. During the meetings, experts will present the advantages of loyalty programs and issues related to investing in the stock market
  • Access to the MyBenefit Cafeteria, an internet platform through which the participant can use many cultural, tourist and recreational offers (including cinema or theater tickets, ski passes)

The “Energa w Akcji!” user account in the Cafeteria will be credited once with 140 Energa points, which can be used for any rewards. After using all of the points, the participant can still use the Cafeteria offer.

According to the share price of September 20, 2021, when this text was written, the threshold for entering the program was PLN 8.22 and in order to use the offered rewards, the threshold was PLN 4,110.

Advantages:

  • Great variety of rewards available
  • Cooperation with other companies

Disadvantages:

  • One acceptable brokerage house available

Programy lojalnościowe dla akcjonariuszy - Tomasz Makaruk

UNIMOT Klub+

UNIMOT decided to introduce a shareholder loyalty program at the beginning of 2021. The condition for joining UNIMOT Klub+ is holding a minimum of 100 shares for a period of at least 6 months. Currently, the company cooperates with four brokerage houses (Biuro Maklerskie Alior Bank, Dom Maklerski BOŚ, Santander Biuro Maklerskie, Dom Maklerski Noble Securities). The Main Partner of UNIMOT Klub+ is the Association of Individual Investors (SII).

How to join the program?

  1. A shareholder must hold a minimum of 100 shares for at least 6 months.
  2. You must have a brokerage account.
  3. If a shareholder has an account in one of the brokerage houses indicated by the company – they should fill in the form in the brokerage house.
  4. If a shareholder has an account in a brokerage house that does not cooperate with the company – they should register via the company’s website and provide a certificate of the number and time of shares held. In order to renew your membership, you must provide such a document every 6 months.

There are three membership levels available within the club:

  • RED+ level – you get this at the time of joining the program
  • SILVER+ level – to obtain this status, you must have a minimum of 500 shares for a period of at least 12 months
  • VIP+ level – to obtain this status, you must have a minimum of 2,000 shares for a period of at least 24 months

Benefits offered to the participants:

  • At the RED+ level – reduction of the SII membership fee by 35%
  • At the SILVER+ and VIP+ levels – the SII membership fee is completely cancelled
  • Discount (once per year) for a subscription of a selected stock exchange media (Parkiet.com, Stockwatch.pl, Strefainwestorow.pl)
  • Discount for a home LPG heating system or AVIA Solar photovoltaic panels
  • At the VIP+ level – the user receives third-party and accident insurances for their private use
  • Refund for refuelling at AVIA stations*
  • At the RED+ level – a discount of PLN 100 for participation in the WallStreet Conference
  • At the SILVER+ level – a discount of PLN 150 for participation in the WallStreet Conference
  • At the VIP+ level – free admission (SILVER option) or a discount of PLN 300 (GOLD option) for participation in the WallStreet Conference

* Possibility of a one-off reimbursement of fuel costs (diesel, gasoline or LPG up to a maximum of 50 litres)

According to the share price of September 20, 2021, when this text was written, the threshold for entering the program was PLN 4,750.

Advantages:

  • Diverse list of rewards on offer
  • Introducing the motivational factor in the form of various statuses in the program
  • Cooperation with other companies

Disadvantages:

  • High threshold for entry into the program
  • Limited number of participating brokerage houses

Moje Akcje PZU (My PZU Shares)

In 2021, the PZU company introduced its proprietary loyalty program for shareholders under the name “Moje Akcje PZU”. The program may be joined by an investor holding at least 100 company shares in Biuro Maklerskie Pekao. The company cooperates with the Association of Individual Investors (SII).

How to join the program?

  1. A shareholder must buy a minimum of 100 shares of the company through Pekao Biuro Maklerskie.
  2. Log on to the website of Pekao Biuro Maklerskie.
  3. Then, submit the appropriate statements on the possession of PZU shares.
  4. Complete the form and register in the Moje Akcje PZU service.

Rewards offered to the participants:

  • 10% discount, then after one year of participation in the program as much as a 20% discount on: car insurance, such as OC (third-party), AC (comprehensive cover), NNW Max (against accidents), home, travel, agricultural, accident insurances
  • 100% discount on the annual basic membership in SII
  • 50% discount on the annual extended membership in SII
  • Access to the selected PZU Group products on preferential terms as the program develops

According to the share price of September 20, 2021, when this text was written, the threshold for entering the program was PLN 3,710.

Advantages:

  • High value of the discounts on offer
  • Rewarding for long-term membership
  • Wide range of benefits
  • Cooperation with SII

Disadvantages:

  • Cooperation with only one brokerage house

Answear Club Investor

Answear also decided to introduce a loyalty program for shareholders named “Answear Club Investor”. In order to join the club, the user must have a minimum of 50 shares in an account at any brokerage house.

How to join the program?

  1. Create an account on Answear.com
  2. Then, the shareholder must complete the form and indicate the brokerage house through which they purchased the appropriate number of the company’s shares.

Benefits offered to the participants:

  • 20% discount for undiscounted products*
  • Early access to exclusive promotional offers
  • Access to the Personal Shopper service

* excluding selected brands

According to the share price of September 20, 2021, when this text was written, the threshold for entering the program was PLN 1,772.50.

Advantages:

  • Low threshold for entering the program
  • The company cooperates with all available brokerage houses
  • High value of the discounts on offer

Disadvantages:

  • Little variety of the rewards on offer

Summary

After presenting the available shareholder loyalty programs, it is worth summarising and compiling some important information.

The cost that a shareholder must incur to join the loyalty program: Answear Club Investor ranked first, the program entry threshold is only PLN 1,772.5 as of the date of writing this article. The record holder in this category turned out to be UNIMOT Klub+, where the threshold for entering the program was PLN 4,750.

Time of share ownership: TMR requires a participant to hold shares on October 31 of each year. For a change, the organisers of UNIMOT Klub+ and Energa w Akcji! require the ownership of the purchased shares for a minimum of 6 months.

Availability of brokerage houses: TMRA and Answear Club Investor cooperate with all brokerage houses in Poland, while Energa and PZU impose one specific brokerage house on a participant in advance.

Benefits offered: The least advantageous and diverse offer of available benefits is presented by PKN ORLEN and Tatry Mountain Resort, while Energa offers members of the shareholder program by far the largest range of available rewards.

On the international market, investor loyalty programs are much more popular. An interesting example from foreign markets is the program for shareholders of Japan Airlines. Investors with 100 shares can save up to 50% on domestic flights. The benefits increase with the number of shares one owns (up to 100,000 shares). It is also an interesting alternative to the program, which may be an inspiration for other carriers. All over the world, such programs are met with positive interest from shareholders. This is evidenced by both the number of programs offered and the number of investors participating in them. For example, according to the available information, 700,000 investors are registered in the Orange program, and 450,000 are registered in the L’Oréal shareholder program.

In comparison, over 3,000 individual investors participate in the “Orlen w portfelu” program. The differences indicate both that this is a new segment of loyalty programs in Poland and that the interest in investing in the shares in the Vistula River Land is significantly lower among the wider population than on mature markets.

If you are interested in implementing or transferring the management of a loyalty program targeted at final buyers, a B2B incentive program or a program for shareholders, please visit the i360.

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