Problem Statement: How would you induce loyalty with an infrequent purchase like tires? Company: BFGoodrich Posted On: Mindsumo

1. Customer Loyalty Program

2. Recognition of a loyal customer is one
of the key parameters…

3. The Loyal Customer
• A loyal customer is the one who critically takes
care of his/her vehicle and is very critical
about the quality of tires used
• The loyal customer will come back again,
considering the quality of service provided by
the company
• The loyal customer will care less about the
cost and cares much about the safety, and
would never trade-off safety for cost

4. But, how to make a loyal
customer!?

5. The Loyalty Program
• The customer loyalty program will primarily
consider rewarding the existing customer in
various senses like cash-backs, jackpots,
freebies and many more
• It will also include alluring new customers to
the company via fresh customer schemes
• This way we could target both the existing as
well as the new customers towards the
company

6. Features of the Program
• Referral Scheme: It would allure new
consumers while rewarding the existing users
of BF Goodrich tires. Discount vouchers will be
provided to both the referred as well as
referee customers
• Fresh User Scheme: This scheme will be
tailored for the fresh customers to BF
Goodrich tires, it would include initial
discounts on first time purchases
Green: The Fresh Customer

7. Features of the Program (contd.)
• Jackpot: At each purchase of a set of 2
wheeler, 4 wheeler and multi-wheeler truck
tires; the customer would be eligible for
winning a family trip to abroad
• Freebies: Freebies like key chains, pens,
diaries and many more small goodies bundled
together can be provided to the customers at
purchase of each set of tires (E.g.: a set of 2
wheeler, 4 wheeler and multi-wheeler truck
tires)
Orange: The Average Buyer

8. Features of the Program (contd.)
• Free Fuel: 5 free fuel vouchers can be
provided to the customer after the purchase
of 10 tires from BF Goodrich, which can be
availed at BF Goodrich’s tied up gas/fuel
stations
• Free Vehicle Services: Either the customer can
avail 5 free fuel vouchers or the customer can
go for 1 free 4 wheeler service at any of BF
Goodrich’s tied up service centres, after the
purchase of 10 BF Goodrich tires
Orange: The Average Buyer

9. Features of the Program (contd.)
• Loyalty Wallet: At purchase of each tire from
BF Goodrich, the customer will get BFG Coins
in the BF Goodrich Loyalty Wallet, which the
customers can spend on future purchases
from BF Goodrich
• Golden Loyalty Card: The golden loyalty card
can be provided to the customers who are
very frequent customers of BF Goodrich tires,
they can show their customized Golden
Loyalty card at various service centres and gas
stations to avail special discounted services
Blue: The Heavy Buyer

10. Target Segments
I have considered 3 major target segments:
• The Fresh Customer
• The Average Buyer
• The Heavy Buyer
These 3 target segments are catered via the
various schemes of the loyalty program stated in
the slide nos. 6 to 9, although all the 8 schemes
will be available for all the customers…

11. Investment by BF Goodrich
Investment
Goodies and Freebies
Tie-ups with gas
stations
Tie-ups with service
centres
Vouchers and Loyalty
Card Printing
Holiday Trip Tickets
Online Portal and
Mobile Application

12. Return on Investment
Low Inv. on Goodies
and Freebies
Mutual Inv. on Tie-ups
with gas stations
Mutual Inv. on Tie-ups
with service centres
Low Inv.: Vouchers and
Loyalty Card Printing
High Inv. on Holiday
Trip Tickets
Low Inv. on Online
Portal and Mobile App.
Low return, alluring all
customers
High Return, alluring
Heavy Buyers
High Return, alluring
Heavy Buyers
Mediocre Return, as it
is merely printing
High Return, alluring
average consumers
High Return in terms of
digitalization
Investment (Inv.) Return

13. An Instance
• First Interaction with the Brand: Any random
customer will always listen to his/her peers for
seeking guidance in terms of purchases, here
our Referral Scheme and Fresh User Scheme
will be immensely helpful
• Customer Involvement: After the customer
gets interacts with the company, the other
schemes like Jackpot, Freebies, Free Fuel and
Services, will start to allure the customer

14. Key Triggers for Participation
• The rewards that people can earn!
• And, even if when people are not purchasing
the tires they can always refer BF Goodrich to
someone who wants to purchase, this would
fetch the company a new customer and for
them a good voucher for their next purchase.
• People love free things i.e. free vehicle
services, free fuel vouchers and freebies
• People feel good when you value them, i.e.
here via the Golden Loyalty Card

15. General Inspiration
The personal experiences I had as a customer:
• Referral Schemes
• Cash-back Offers
• Discount Vouchers
• Scratch Card
• Assured Gifts on Purchases
• Loyalty Wallet
• Freebies and Goodies

16. Extended: For the Garage
The Loyalty program can be extended for other
vehicles present in the customer’s garage like:
• The customers can get their any 4 wheeler
serviced by availing the Free Service Voucher
• The customers can be made eligible for
getting free full tire set replacement in 2
wheeler after purchasing at least 15 tires from
BF Goodrich
• Free car wash can be provided after complete
two 4 wheeler tire set purchases

17. The most important thing to
remember
All these schemes and loyalty programs
will only be successful when the quality
of the tires will be the utmost (which BF
Goodrich is good at already!)

18. Loyal Company, Loyal Customers