Contents:

Chapter One: Introduction Chapter Two: Market Context Chapter Three: Business and Competitor Dynamics Chapter Four: Future Developments Chapter Five: Action Points CHAPTER 1 Introduction What is this report about? Who is the target reader? How to use this report Research methodology Primary research Secondary research Affinity relationships definition CHAPTER 2 Market Context Introduction Affinity relationships: energizing customer acquisition Targetting customers Affinity relationships: fortifying customer retention Reducing switching Reducing churn Conclusion CHAPTER 3 Business and Competitor Dynamics Introduction Strategic model definition Model A: Multi-service retailer Gaining critical mass Developing brand identity Developing the multi service portfolio Utility service provider Creating the emotional link between utility and customer Developing customer loyalty Conclusion CHAPTER 4 Future Developments Introduction Perceptions to date Target marketing Developing channels to market Financial Services: a mature, competitive model Targetting customer segments Strengthening the portfolio Improving incentives Owning the customer – affinity linkage Conclusion CHAPTER 5 Action Points Introduction Incentivization strategy Requirements Diversification strategy Strategic aims Recommendations Conclusion CHAPTER 6 APPENDIX Research methodology Primary research Secondary research IMPACT Survey Definitions Future readings SPP writing team LIST OF TABLES Table 1: Estimated proportion of Clubcard related gains against the total acquisition effort Table 2: Size and value of UK affinity card market LIST OF FIGURES Figure 1: Affinity related tariffs are best suited for enthusing customers who would otherwise not switch Figure 2: Affinity relationships can aid customization and diversification of the utility tariff offering Figure 3: Affinity relationships are effective at reducing the rate of churn Figure 4: Stages of development in the multi-service retail business model Figure 5: Residential dynamics for customer growth and development Figure 6: Estimated proportion of Clubcard related gains against total acquisition rates per quarter Figure 7: Expanding brand recognition into the multi service retail market through affinity development Figure 8: Aggregated affinity take-up against total customer acquisition for npower Figure 9: Perception of utility-offered bundles services by the European residential customer Figure 10: Customer gains and losses per quarter Figure 11: HEW Card customer take-up Figure 12: Trend of affinity cards within the UK credit card market - (1995-2001) Figure 13: Affinity relationship/co-branded partnership portfolio of a typical credit card provider Figure 14: The introduction of an affinity portfolio in conjunction with traditional drivers can positively impact upon switching trends Figure15: Customizing the account Figure 16: Customizing the offering Figure 17: Individual affinity relationships can be strengthened by linking partner incentives