Your SlideShare is downloading. ×
0
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Impact of loyalty programs in retailing business in India for creating long term relationships
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Impact of loyalty programs in retailing business in India for creating long term relationships

315

Published on

Impact of loyalty programs in retailing business in India for creating long term relationships. Various topic on sutomer loyalty and loyalty program has been covered.

Impact of loyalty programs in retailing business in India for creating long term relationships. Various topic on sutomer loyalty and loyalty program has been covered.

Published in: Marketing
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
315
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Impact of loyalty programs in retailing business in India for creating long term relationships - Lovekshitij Suryavanshi - Customer Relationship Management
  • 2. Why Loyalty Programs? • Dynamic Competition • Good relationship with customer is must • Long term relationship • Target customer acquisition more accurately • To increase customer retaining rate • Acquiring data: e.g: Monthly spend • Move customers up the spend band • Loyalty impacts profitability
  • 3. Loyalty Program Initiatives
  • 4. Loyalty Program Initiatives • Focus on the best customers that you already have • Optimize the profit that can be made from customer • Increase the period in which they remain customers • Be able to produce measurable results of success
  • 5. Factors which influence Loyalty Programme
  • 6. Factors which influence Loyalty Programme • What proportion of turnover should a loyalty programme cost ? • How long should it take before it begins to pay back? • Product Range and Stock Selection • Promotional and Advertising cost • Geographical targeting • Ensuring success of loyalty programme
  • 7. Goals of Loyalty Programme
  • 8. Goals of Loyalty Programme • Customer Satisfaction: - Result of a subjective valuation whether consumption fulfill or exceed expectations - Customer satisfaction is a key issue - Assumption: Happens when expectation is matched to the actual result
  • 9. Goals of Loyalty Programme • Customer Loyalty: - Prevents the switching of customers from the organizations to competitors - It is a notion to describe the end result of a relationship between the company and the customer - Acquire Customer Loyalty : company provide benefits
  • 10. Goals of Loyalty Programme • Customer Retention: - Outcome of customer’s experience with firm and products - 3 factors: Customer satisfaction, Affective commitment and Calculative commitment
  • 11. Types of Loyalty Programme
  • 12. Types of Loyalty Programme • Rewards: Awards points for purchases • Rebate: Award a gift coupon redeemable for the next purchase • Appreciation: - Offer a rebate, not the cash - appreciation reward points can be redeem at same company - e.g: Airlines, Hotel, Mobile etc
  • 13. Types of Loyalty Programme • Partnership: - Reward the consumer’s accumulated purchases with a partner’s products or services - e.g: Tata’s Westside, offer a discount if consumers make payment above Rs. 2500 with ICICI debit card • Affinity: - Value added benefits and bonuses and recognition as a valued consumer - e.g: Bank’s Debit cards, gold and silver debit cards
  • 14. Benefits of Loyalty Programme
  • 15. Benefits of Loyalty Programme • Increased Customer Spending • Reduced cost to serve customer • Increase customer spending on Higher Margin Products • Increase referrals from existing customers • Increase Customer Lifetime Value • Select Stock lines effectively
  • 16. Loyalty Programmes in Retail
  • 17. Loyalty Programmes in Retail • India’s Largest Loyalty Card: Payback India: 12 Million+ members • Hero’s Goodlife: 10 Million+ members • State Bank Group’s – World’s Largest: Freedom Rewardz : 110 Million+ members • Indian Oil’s XTRAPOWER + XTRAREWARDS: 3 Million+ Members

×