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NON FLEET LOYALTY PROGRAMS
FLOW OF PRESENTATION
• Loyalty Program and how does it
works?
• Need of Non Fleet Loyalty
programs
• Loyalty Programs by Oil
Companies.
• Challenges Faced by
Petroretailers.
• Loyalty programs in other sectors.
• Cross Learning & Suggestions
WHAT ARE THE LOYALTY PROGRAMS?
• The primary goal of the loyalty program is the acquisition of
information related to customer spending habits.
• secondary goal is to cultivate loyalty amongst customers.
• It helps overall structure.
• A loyalty program can gives various benefits to customers.
• It can also give advanced access to new products
• The technique is used by various businesses.
• Used in retail sector generally
HOW DOES IT HELP?
• Customer get discount and points for next purchase
• Retailer get data for market research
Ex. Favorite brand for clothes, If Customer is vegetarian or
not
• Access to club lounge in Airport, It means customer is
‘Frequent Flyer’
• Its five to ten times easy to retain old customer and Cost
less.
NEED OF
NON-FLEET
LOYALTY
PROGRAMS
Increasing
competition in
Petro-retailing
Target: 2 wheeler
and 4 wheeler
owners in urban
and semi- urban
areas
1 2
3-Wheelers
2%
SUVs
2%
Others
0.39
ALL INDIA END USE SHARE OF PETROL IN RETAIL
2-
Wheelers
62%
Nielsen Survey for PPAC-2013
Petrol consumption at nearly 16
million tonnes
As per ICE 360⁰ Survey 2016,
The proportion of two-wheeler owners
has increased 15 percentage points
from 2011 to 36%
Cars
34%
LOYALTY PROGRAMS OF OMCs
IOCL
ShellBP BPCL
HPCL
Retailing is an integral function of marketing that creates utilities in terms of Economic, Social, Emotional, Conditional
and Epistemic values sought by customers. Petro-retailing equally performs similar tasks as it is face of Oil Marketing
Companies before the customers. Loyalty Card program has been one of the techniques used by OMCs in order to
stimulate customer loyalty.
Shell Drivers club
Products/Services Points
Shell V-Power Diesel 2
Shell V-Power Unleaded 2
Shell Regular Diesel 1
Shell Regular Unleaded 1
Shell Autogas LPG 1
Shell Super Shine Jet
Wash
15
Shell Super Shine Car
Wash
25
Online Registration 200
Collecting Points Redeem points
Money off Fuel Vouchers 500 points are worth
£2.50 fuel
In-Store Vouchers 500 points are worth a
£2.50 In-Store products
Alliances Vouchers Waitrose, Avios,
BritishAirways,
IT support STRONG
Services STRONG
Convenience HIGH
Partners/Alliances
Network
STRONG
BP driver rewards
BP Visa with Driver Rewards
• 25 cents off per One gallon(3.78ltr) fuel
• 15 cents off on minimum spending of 100 $ in BP Connect stores.
• No prepaid facility
BP Credit Card with Driver Rewards
• 25 cents off per One gallon(3.78ltr) fuel
• 15 cents off on minimum spending of 100 $ in BP Connect stores.
• Cashless/ with prepaid facility
BP Driver Rewards Loyalty Card
• Online rewards platform for BP connect stores.
Velocity loyalty card of BP
Collect and redeem points at
BP & Velocity services
IT support STRONG
Services STRONG
Convenience MODERATE
Partners/Allianc
es Network
MODERATE
DIGITAL
DISRUPTION IN
FUELRETAILING
In 2014, SAP ,Toyota InfoTechnology Center &
VeriFone have designed Simplified fueling experience
telematics system Built on SAP HANA Cloud system.
• VeriFone provides point-of-sale (POS) solutions and
Toyota ITC provides telematics data. These processes
and information are integrated via the SAP Cloud
portfolio and presented in the application screen
• Track Locations + Suggest fuel stations + shows
nearby reward offers based on location.
LOYALTY PROGRAMS OF INDIAN OMCs
Product XTRAREWARDS HPCL-PAYBACK CARD BPCL-PETRO BONUS
point points Payback point Petromiles
Branded fuel 1 1 25
HSD 1 1 15
MS 1 1 15
Gas 1 1 19
Lube 1 1 250
Registration fee 60/- free 250/-
Money off voucher 334 point worth Rs. 100/- 1 payback point for Rs 100/- 3333 Petromile worth Rs. 50/-
Instore voucher 334 point worth Rs. 100/- Many voucher on payback webportal 3333 Petromile worth Rs. 50/-
Alliance voucher Domino’s, pantaloons, PVR, subhiksha Flipkart, amazon.in, bookmyshow Domino’s, flipkart, amazon.in
LOYALTY PROGRAMS IN OTHER SECTORS
Pantaloon Retail
• Green card for its Apparel business which has
exclusive discounts and privileges with
Apparel, perfumes & cosmetics, toys, Planet
Sports & accessories.
Esprit
• EPC Red Card, which grants cardholders a
10% discount at Esprit stores.
• Customers who make purchases of
Rs.25,000 or more during a one-year
period are upgraded to EPC Platinum Card
membership that gives additional 10%
discounts.
RETAIL
LOYALTY IN HOSPITALITY
Hyatt
• the Hyatt Gold Passport
program is set for rebranding
in the World of Hyatt with
three tiers – Globalist,
Explorist and Discoverist.
Hilton Honours
• HHonors is clubbed with air
miles and points can be
earned or redeemed for both
air travel and hotel stay.
Airlines
Air India
custom reward levels
special promotions such as "Double Point
Tuesday" or offer bonus points for customer
actions or referrals.
FR points can be earned when member fly
with Air India and 27 Star Airline partners on
eligible fare paying tickets
Jet Airways
JPMiles can be earned every time we
travel with Jet Airways, Etihad Airways
or 150 other partners
JPMiles that are accumulated can be
redeemed for Award Flights to any
destination of choice.
CHALLENGES FACED BY PETRORETAILERS
• Lack of awareness about program and its
benefit
• Technical issue
• Card doesn’t hold money
• Retailer outlet plays significant role
• Dummy transactions
CROSS LEARNING & SUGGESTIONS
• Offers and alliances need to be more appealing.
• Design Coalition Loyalty program.
 With numerous sponsors and partners in the coalition & many channels to earn points,
member is more likely to remain customer to earn points towards higher level, motivating
rewards.
• Faster attainability of rewards + greater selection of rewards = higher
value for consumers.
• Shape retail offerings based on demographics and geographic
information
• Personalise offerings for each customer based on previous purchases
• Identify relevant, disruptive technologies that can enable innovative
service offerings.
Thank you
“once you build loyal customer base, its tough for competitor to take that
away”
- joe mansueto

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Nonfleet Loyalty programs in PetroRetailing sector

  • 1. NON FLEET LOYALTY PROGRAMS
  • 2. FLOW OF PRESENTATION • Loyalty Program and how does it works? • Need of Non Fleet Loyalty programs • Loyalty Programs by Oil Companies. • Challenges Faced by Petroretailers. • Loyalty programs in other sectors. • Cross Learning & Suggestions
  • 3. WHAT ARE THE LOYALTY PROGRAMS? • The primary goal of the loyalty program is the acquisition of information related to customer spending habits. • secondary goal is to cultivate loyalty amongst customers. • It helps overall structure. • A loyalty program can gives various benefits to customers. • It can also give advanced access to new products • The technique is used by various businesses. • Used in retail sector generally
  • 4. HOW DOES IT HELP? • Customer get discount and points for next purchase • Retailer get data for market research Ex. Favorite brand for clothes, If Customer is vegetarian or not • Access to club lounge in Airport, It means customer is ‘Frequent Flyer’ • Its five to ten times easy to retain old customer and Cost less.
  • 5. NEED OF NON-FLEET LOYALTY PROGRAMS Increasing competition in Petro-retailing Target: 2 wheeler and 4 wheeler owners in urban and semi- urban areas 1 2
  • 6. 3-Wheelers 2% SUVs 2% Others 0.39 ALL INDIA END USE SHARE OF PETROL IN RETAIL 2- Wheelers 62% Nielsen Survey for PPAC-2013 Petrol consumption at nearly 16 million tonnes As per ICE 360⁰ Survey 2016, The proportion of two-wheeler owners has increased 15 percentage points from 2011 to 36% Cars 34%
  • 7. LOYALTY PROGRAMS OF OMCs IOCL ShellBP BPCL HPCL Retailing is an integral function of marketing that creates utilities in terms of Economic, Social, Emotional, Conditional and Epistemic values sought by customers. Petro-retailing equally performs similar tasks as it is face of Oil Marketing Companies before the customers. Loyalty Card program has been one of the techniques used by OMCs in order to stimulate customer loyalty.
  • 8. Shell Drivers club Products/Services Points Shell V-Power Diesel 2 Shell V-Power Unleaded 2 Shell Regular Diesel 1 Shell Regular Unleaded 1 Shell Autogas LPG 1 Shell Super Shine Jet Wash 15 Shell Super Shine Car Wash 25 Online Registration 200 Collecting Points Redeem points Money off Fuel Vouchers 500 points are worth £2.50 fuel In-Store Vouchers 500 points are worth a £2.50 In-Store products Alliances Vouchers Waitrose, Avios, BritishAirways, IT support STRONG Services STRONG Convenience HIGH Partners/Alliances Network STRONG
  • 9. BP driver rewards BP Visa with Driver Rewards • 25 cents off per One gallon(3.78ltr) fuel • 15 cents off on minimum spending of 100 $ in BP Connect stores. • No prepaid facility BP Credit Card with Driver Rewards • 25 cents off per One gallon(3.78ltr) fuel • 15 cents off on minimum spending of 100 $ in BP Connect stores. • Cashless/ with prepaid facility BP Driver Rewards Loyalty Card • Online rewards platform for BP connect stores. Velocity loyalty card of BP Collect and redeem points at BP & Velocity services IT support STRONG Services STRONG Convenience MODERATE Partners/Allianc es Network MODERATE
  • 10. DIGITAL DISRUPTION IN FUELRETAILING In 2014, SAP ,Toyota InfoTechnology Center & VeriFone have designed Simplified fueling experience telematics system Built on SAP HANA Cloud system. • VeriFone provides point-of-sale (POS) solutions and Toyota ITC provides telematics data. These processes and information are integrated via the SAP Cloud portfolio and presented in the application screen • Track Locations + Suggest fuel stations + shows nearby reward offers based on location.
  • 11. LOYALTY PROGRAMS OF INDIAN OMCs Product XTRAREWARDS HPCL-PAYBACK CARD BPCL-PETRO BONUS point points Payback point Petromiles Branded fuel 1 1 25 HSD 1 1 15 MS 1 1 15 Gas 1 1 19 Lube 1 1 250 Registration fee 60/- free 250/- Money off voucher 334 point worth Rs. 100/- 1 payback point for Rs 100/- 3333 Petromile worth Rs. 50/- Instore voucher 334 point worth Rs. 100/- Many voucher on payback webportal 3333 Petromile worth Rs. 50/- Alliance voucher Domino’s, pantaloons, PVR, subhiksha Flipkart, amazon.in, bookmyshow Domino’s, flipkart, amazon.in
  • 12. LOYALTY PROGRAMS IN OTHER SECTORS Pantaloon Retail • Green card for its Apparel business which has exclusive discounts and privileges with Apparel, perfumes & cosmetics, toys, Planet Sports & accessories. Esprit • EPC Red Card, which grants cardholders a 10% discount at Esprit stores. • Customers who make purchases of Rs.25,000 or more during a one-year period are upgraded to EPC Platinum Card membership that gives additional 10% discounts. RETAIL
  • 13. LOYALTY IN HOSPITALITY Hyatt • the Hyatt Gold Passport program is set for rebranding in the World of Hyatt with three tiers – Globalist, Explorist and Discoverist. Hilton Honours • HHonors is clubbed with air miles and points can be earned or redeemed for both air travel and hotel stay.
  • 14. Airlines Air India custom reward levels special promotions such as "Double Point Tuesday" or offer bonus points for customer actions or referrals. FR points can be earned when member fly with Air India and 27 Star Airline partners on eligible fare paying tickets Jet Airways JPMiles can be earned every time we travel with Jet Airways, Etihad Airways or 150 other partners JPMiles that are accumulated can be redeemed for Award Flights to any destination of choice.
  • 15. CHALLENGES FACED BY PETRORETAILERS • Lack of awareness about program and its benefit • Technical issue • Card doesn’t hold money • Retailer outlet plays significant role • Dummy transactions
  • 16. CROSS LEARNING & SUGGESTIONS • Offers and alliances need to be more appealing. • Design Coalition Loyalty program.  With numerous sponsors and partners in the coalition & many channels to earn points, member is more likely to remain customer to earn points towards higher level, motivating rewards. • Faster attainability of rewards + greater selection of rewards = higher value for consumers. • Shape retail offerings based on demographics and geographic information • Personalise offerings for each customer based on previous purchases • Identify relevant, disruptive technologies that can enable innovative service offerings.
  • 17. Thank you “once you build loyal customer base, its tough for competitor to take that away” - joe mansueto