1. LOYALTY CARDS IN
INDIAN RETAIL

2. What is a loyalty program?
 Loyalty programs are schemes designed with
an intention to retain existing customers and
attract new customers
 It provides either materialistic or price-wise
benefits to customers

3. What is a loyalty card program?
 A loyalty card program is a marketing program
that rewards customers with discounts and
incentives for their repeated business, while
providing retailers with information about the
customer's purchasing habits.

6. Advantages of loyalty cards
 Loyalty card programs can help retain
customers, attract new customers and improve
sales by offering Exclusive deals, discounts and
incentives .
 Loyalty card incentives improve customer service
and relationships with customers.
 it also leads to free publicity hence reducing
advertising costs
o Reduced advertising costs and increased return
on investment (ROI) on marketing campaigns are
two main business growth advantages. They also
help in maintaining good relation with customers
and pulling them away from competition

8. Disadvantages of loyalty cards
 Decreased Brand Value
 Reduced Profits
 Customer Stalking
 False information
 Difficult to exit
 It May Hide Real Loyalty and Satisfaction
Levels
 Risk of falling foul of Consumer Privacy ACT

10. Why loyalty cards are
successful?
 Savings
Loyalty cards typically trigger discounts on select items on a retailer's shelves.
The discounts are clearly marked to emphasize the savings so that both
repeat customers and new ones notice the advantage of using the card.
Without using the card, a shopper does not receive the discounts tied to the
card.
 Profiling
The use of a loyalty card allows retailers to build an aggregate profile of each
customer that uses it, according to Consumer Affairs. The cards inform
retailers about the products that each customer purchases and their other
shopping habits, such as how often they shop and when they shop.
 Using the data
Retailers use the data collected for marketing and retail strategy purposes.
This includes targeting high-spending, frequent customers with special
offers and advertisements based on their behavior, according to Consumer
Affairs. Sometimes retailers share the data collected in their stores with
other retailers.

11. Future of loyalty cards
 What is Next?
 McQuivey offers, "Expect radio frequency
identification embedded in the loyalty card of
the future, an electronic tag that will identify
you when you walk through the door, when
you're standing in front of the Pampers, and
when you arrive at checkout. All with your
permission, of course, and in exchange for a
benefit grocery stores have yet to identify."