Customer Loyalty Programs In Itc Ltd, India


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Customer Loyalty Programs In Itc Ltd, India

  1. 1. Customer loyalty programs in ITC LTD, INDIA<br />By<br />Amogh Upadhyay<br />
  2. 2. Introduction<br />Vision<br />Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company’s stakeholders. <br />Mission<br />To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value. <br />
  3. 3. Introduction<br />Information<br />Type: Public<br />Industry: Conglomerate<br />Founded: 24thAug 1910<br />Headquarters: Kolkata, India<br />Employees: 30,000<br />Revenue: US$ 6 billion (09)<br />Core Values<br />Trusteeship<br />Customer needs<br />Respect for the people<br />Excellence<br />Innovation<br />Nation Orientation<br />
  4. 4. Brands Portfolio of ITC LTD<br />
  5. 5. Customer loyalty programs @ ITC LTD<br />
  6. 6. Wills Lifestyle<br />Positioning as high end luxury brand<br />Few retailers that provide any sort of loyalty program in this segment<br />Benefits to members:<br />No question asked return policy for up to 2 years<br />Know your style <br />Customized service <br />Smart card (no points system)<br />Previews of season launch collection <br />3 days sale period year marked just for “Club Wills” members.<br />Invitation to the India Fashion week <br />Interaction with the Top designers <br />
  7. 7. luxury palaces, hotels and resorts (ITC luxury hotels, Sheraton hotels, Welcom Hotels, Fortune Hotels, Heritage City Hotels)<br />Positioning: high end luxury hotels<br />Most comprehensive Customer loyalty Program in the country <br />No competitors in the customer loyalty program of this scale<br />Three tiered: Silver, Gold and Select Gold <br />
  8. 8. Benefits to the members<br />Silver: <br />earning of stars @3% of your total 'Eligible Charges'<br />earning of Stars on restaurant usage even as a non-resident guest (on a minimum eligible bill amount of Rs. 1000)<br />Gift Voucher worth Rs. 500 on completion of your 4th stay<br />WelcomAward Gold membership* on completion of 8 stays<br />WelcomAward Gold Select membership* on completion of 16 stays<br />
  9. 9. Gold<br />Earning of Stars @4.5% of total 'Eligible Charges'<br />Personalized Welcomkey<br />Extended check-out facility till 4 p.m. on availability<br />No extra charge on room for accompanying spouse<br />earning of Stars on restaurant usage even as a non-resident guest (on a minimum eligible bill amount of Rs. 1000)<br />50% off on Suites on weekends (Friday / Saturday)<br />Gift Voucher worth Rs. 500 on completion of 4th stay<br />Suite Upgrade Voucher on completion of 8th stay<br />Complimentary Weekend Night Voucher on completion of 12th stay<br />WelcomAward Gold Select membership* on completion of 16th stay<br />
  10. 10. Select Gold<br />Priority on your room reservations made with a 72-hours notice of arrival<br />Access to the exclusive Towers Club, even as a non-resident guest<br />Complimentary upgrade to our Best Rooms, including Standard Suites, on availability<br />In-room check-in<br />Complimentary in-room Welcome Amenity<br />Complimentary in-room Internet Access (HSIA) @ 256 kbps tier<br />On demand, complimentary in-room service of Tea/Coffee throughout your stay.<br />
  11. 11. Rewards<br />Exotic holidays<br />Travel privileges<br />Fine dining<br />Wills Lifestyle<br />Kitchens of India<br />Hidesign gift vouchers<br />Free fly faster<br />
  12. 12. Evaluation of <br />Perceived value: FandosRoig et al. (2009) <br />Monetary benefits: sale, discounts (functional)<br />Social benefits: preference, personal invite to national events, pride attached (emotional)<br />Sacrifices made: nil<br />Value: customized service (functional), monetary and social benefits<br />
  13. 13. Evaluation of <br />Perceived value: FandosRoig et al. (2009)<br />Monetary benefits: gift vouchers, discounts, complementary stay, tours and travel offers, discounts on other brands (functional)<br />Social benefits: high social class, preference, customized services (emotional)<br />Sacrifice: premium price<br />Value: inter brand, status <br />
  14. 14. FandosRoig et al. (2009)<br />Satisfaction: Functional + emotional + social value<br />If there would be satisfaction there would be intentional loyalty because of which there would be behavioral loyalty <br />
  15. 15. Wagner etal (2009)<br />What happens when a customer in a hierarchical loyalty program is ‘demoted’ by the company?<br />Not applicable to “ClubWills”<br />“WelcomAward”<br />
  16. 16. Wagner (2009) “welcomaward”<br />3 tired (Silver, Gold, Gold Select)<br />Getting into the program is easy <br />No demotion<br />The customer retains the award level which he/she has achieved<br />Hence no point of customer negative loyalty intentions<br />The perception benefits which the customer will receive is still intact. <br />The only thing they have to make sure that they have enough stars (points) which will facilitate them to enjoy the benefits. <br />
  17. 17. Conclusion<br />The system which ITC has in place is a great one. In which it’s the customer who decides when and how they want to avail the benefits and get the value and enjoy the brand ITC.<br />