Small companies can also offer membership programs

Jonminofri Nazir, Contributor, Jakarta

A club sells membership cards to ensure it will have loyal customers, while customers agree to become members because of the benefits that the card offers. They will enjoy not only cheap, exclusive and complete packages and facilities, but also networking.

Membership programs have never really flourished in Indonesia, although there are clubs that can effectively collect customers of similar types or classes (hence the term exclusive).

Nevertheless, such clubs continue to emerge. The target markets for them can be very broad. McDonalds, for example, has its McKids Club. Or it may be limited to certain areas, such as the computer game businesses mushrooming all over Jakarta and Botabek.

Then there are highly professional clubs such as the Financial Club, now in its eighth year of existence. This club is highly exclusive and is still active, although its membership growth is not exactly brisk.

"Owing to the present unfavorable economic and investment situation, many candidates have canceled their intention to join as individual members. They prefer to join the club under a corporate membership scheme," said Mila Mawira, Financial Club adviser, last week.

But it is not only large businesses and big clubs that are selling membership cards these days, with many small-scale businesses doing likewise, although in a much simpler manner than their larger counterparts.

Roam around Jakarta and you will find numerous computer game businesses. Usually all such a business needs is a room measuring 3m x 3m with an air-conditioner. Inside the room there are usually seven computers with 17-inch monitors, plus active speakers. You can imagine how noisy the room is if all seven computers are in use.

Yet, these places always seem to be crowded. Good business, of course. People have to line up to get a game. So, to be able to enjoy the games better, become a member. You will get facilities and bonuses, such as a free hour of play for every 10 hours you pay for (not necessarily at a stretch).

The market segment? Youngsters, even those still in elementary school. The membership cards are simple. A postcard-size piece of paper containing your name, membership number, address and a special column -- to be filled in by an employee -- for the hours spent.

This membership card will keep a member playing games at this particular location. If he plays somewhere else, he will have to fork out more money, and will not receive any bonuses. This is a simple way to net customers.

Indeed, the facility given to cardholders is only playing priority and a bonus of one free hour for every 10 hours played.

McKids Club is quite different. You pay Rp 50,000 to register and you get a T-shirt, a hat and a bag. Other facilities are that the members may get the opportunity to appear on TV, on a program the club produces. And children regularly receive magazines.

The goal of this club is very clear: to get as many loyal customers as possible. And the club does have a lot of members.

Because of the great number of members, some people are unable to enjoy the facilities despite their membership cards. The club management seems unable to cope with the number of members, and practically speaking all that most members can use the card for is to get a discount at one McDonalds outlet. So, it is more or less the same as the membership card at a computer rental center.

Membership at the Financial Club differs from that of other clubs; it is very exclusive. When it was established eight years ago, the Financial Club accepted only members coming from a financial background.

This did not last for long. Financial circles have to interact with business executives, for example. So in 1998, the Financial Club began to accept other businesspeople and professionals.

Although the membership requirements have been eased, new members are hard to recruit at present. Mila Mawira put it down to the unfavorable economic situation. Another reason could be that many people join the club under a corporate membership scheme. A company will calculate very carefully before deciding to pay a registration fee of Rp 10 million for a member and a monthly contribution fee of Rp 450,000.

Despite an advance deposit of Rp 10 million, a candidate cannot be sure of being accepted as a member of the Financial Club, because he must be recommended by another member.

For a big company, money is no constraint and the benefit is clear. The club actively organizes business gatherings among its members. Actually this is the strength of a club like this, the broadening of members' networks. This networking is done through business gatherings among members or through similar interactive activities involving club members.

The club organizes business gatherings periodically, with experts always invited to address current issues. On Aug. 28, for example, the IMF representative for Indonesia will be part of a discussion panel with Miranda Goeltom, a noted economic observer.

A club should be exclusive and provide its members with numerous benefits. It should not just give discounts.