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Real Estate Customer Loyalty Business Model

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“Customer is King”: Described How we can increase our Sales in Real Estate by putting some efforts in customer loyalty programs which ultimately helps us in increasing word of mouth and better customer servicing.

Real Estate Customer Loyalty Business Model

  1. 1. Customer Loyalty Business Model Proposal
  2. 2. Loyalty Business Model <ul><li>Referral marketing is a structured and systematic process that maximizes word of mouth potential. </li></ul><ul><li>Referral marketing encourages informing, promoting and rewarding customers and contacts to think and talk as much as possible about their company, product and service. </li></ul><ul><li>Loyalty marketing is an approach to marketing based on strategic management in which a company focuses on growing and retaining existing customers through incentives . </li></ul><ul><li>Quality of product or service leads to customer satisfaction, which leads to customer loyalty, which leads to profitability. </li></ul><ul><li>Loyalty marketing is an extension of that effort, relying upon word-of-mouth and advertising. </li></ul><ul><li>Loyalty Business Model In India </li></ul><ul><li>Purvankara Privileges ( Real Estate) </li></ul><ul><li>Hero Honda Passport Program </li></ul><ul><li>BPCL Petro Bonus </li></ul><ul><li>Maruti Suzuki Auto Card </li></ul><ul><li>Future Group Loyalty Program </li></ul><ul><li>VLCC Loyalty Program </li></ul><ul><li>Airlines – Frequent Flyer Program </li></ul><ul><li>Hotel & Hospitality Loyalty Offers </li></ul>
  3. 3. Referral Program Execution Mode <ul><li>We can Execute & Communicate Referral Program to our customers: </li></ul><ul><li>Through Specially Printed Stationary for Call Notices, Reminders & Letter. </li></ul><ul><li>Through our website Referral Form. </li></ul><ul><li>Communication made with customers in First Quarter of FY 2010: </li></ul><ul><li>Call Notice: Rajasthan Projects </li></ul><ul><li>April 2010 771 </li></ul><ul><li>May 2010 436 </li></ul><ul><li>Jun 2010 438 </li></ul><ul><li> 1645 </li></ul><ul><li>Reminder, Letters etc (Estimated) 100 </li></ul><ul><li>Total 1745 </li></ul><ul><li>We had the opportunity to communicate Loyalty Program with 1800 customers in First Quarter FY 2010 </li></ul>Referral Marketing Expenditure If it was Adapted in First Quarter of FY 2010 Stationary Cost @ Rs. 1.75/- = Rs. 3053/- Advertisement Expenditure (Rajasthan) First Quarter of FY 2010 = Rs. 11 Lac (Approx)
  4. 4. Advantage: Referral Marketing <ul><li>Less Cost Sensitive BTL Marketing Activity. </li></ul><ul><li>Enhancement of Brand Ansal API by increase in word of Mouth. </li></ul><ul><li>Facilitate in up-selling & cross-selling of products (Selling additional product to existing customers) </li></ul><ul><li>Helps in Cutting Competition when competitors are following orthodox marketing strategies. </li></ul><ul><li>Tool for tracking Customer Trend Analysis. </li></ul><ul><li>Provides platform to build trust & customer relationship, helps in Brand Makeover. </li></ul><ul><li>Positive impact on other parallel Marketing Strategies, advertisement campaign etc. </li></ul>
  5. 5. Dealer Vs Customer Customer referral booking is governed by his satisfaction and will always be project or company specific. Dealer not only works for Ansal API but also for other Developers & competitors. Dealer promotes our project only because of profit centric objectives. Customer promotes our project by word of mouth among social network guided under psychology of Living together Dealer has more exposure of secondary market or resale and his objective may be fulfill only through secondary market. Customer has less exposure of secondary market rates, trends etc and many time as a laymen he is ignorant about it.
  6. 6. Referral Scheme in Real Estate One of the Major Bangalore based Developer “ Purvankara” has initiated customer loyalty program in the name of Purava Privileges Refer and get rewarded With Purva Privileges you can refer a friend or a relative to us. For every successful referral, you will become eligible for a ‘reward’. (Conditions apply). To know more about the referral program call the Purva Helpline @ 65335500 Referral reward: All referral claims received on or after May 01, 2005, will be awarded a sum of Rs. 25,000/- as referral reward, irrespective of the apartment value. (Conditions Apply) Concierge services Each residing member of the Purva Privileges program, enjoy free concierge services. All he has to do is call the Purva Helpline at 65335500 and place his request. A Purva Privileges member will only pay for the product and not the services involved. (Conditions Apply) http://www.puravankara.com/privileges/privilegefaqs.asp
  7. 7. Dealer Commission Slab: Up to 5 Units          3% 6 to 10 Units           4% Above 11 Unit          5% Referral Program <ul><li>For every successful referral, customer will become eligible for a Rs.25000/- discount on existing property. </li></ul><ul><li>Customer will eligible for this discount only for successful recommendation of property more than 8 Lac. </li></ul><ul><li>Under this Loyalty program customer will get Loyalty card which will be redeemable at the time of possession. </li></ul><ul><li>Loyalty Discount Card will be effective on total consideration as per allotment letter, which includes basic plus interest amount at the time of possession. </li></ul><ul><li>Customer can redeem same Loyalty Discount Card for his recommended friend/relative’s booking for Rs. 15000/- </li></ul><ul><li>For every successful referral by customer who had already taken delivery of their unit. </li></ul><ul><li>For every successful referral booking discount of Rs. 15000/- can be given to his friend or relative. </li></ul><ul><li>Or On successful referral booking customer will get 3 Year free membership of Maple Club. </li></ul><ul><li>Or On successful recommended booking customer will get Tata Sky with one year free subscription. </li></ul>
  8. 8. Group Multiplier Discount <ul><li>Group Multiplier Discount Scheme will be applicable for new customers in which they can refer entire Rajasthan properties in their social network and can form a group upto 10 persons to avail discount under this scheme: </li></ul><ul><li>Customers who will avail discount under this scheme will not eligible for other loyalty schemes. </li></ul><ul><li>Under this scheme base rate of discount will be 0.5%. </li></ul><ul><li>Customer will have 2 Months time from date of his booking to form a group upto 10 persons. </li></ul><ul><li>This referral group of upto 10 persons can opt any properties of Rajasthan Project between 12 Lac to 20 Lac. </li></ul><ul><li>Group Discount will be calculated by multiplying discount base rate (0.5%) with size of group. </li></ul>Group Multiplier Discount Base Rate is 0.5% Mr. A + Mr. B (0.5% X 2 = 1%) Mr. A + Mr. B + Mr. C (0.5% X 3 = 1.5%) Mr. A + Mr. B + Mr. C + Mr. D (0.5% X 4 = 2%) <ul><li>Advantage: </li></ul><ul><li>Mr. A will always want to add his group size to get discount. </li></ul><ul><li>Mr. B or any new group member will join this group easily, as they will also get multiplying effect of discount. </li></ul><ul><li>As the group size will increase effort to increase this group will also multiplied by each added member resulting into increase in bookings. </li></ul>
  9. 9. T hank You Rahul Gaur Asst. Manager (Marketing) Ansal Properties & Infrastructure Ltd.

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