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A well designed loyalty scheme could be considered
Hiral Shah Jagad | 13 Mar 2008

The Gujarat loyalty industry is still in its infancy as most programs are very much standalone, points-driven or discounting schemes. Many companies have figured out how to deliver customer satisfaction, but they've not yet figured out how to earn loyalty

A well designed loyalty scheme could be considered as a useful instrument

  • Debate on Loyalty programs and the Indian mindset
  • Gujarat based customers can be most benefited
  • Growth in individual sector and industries
  • Most companies cannot count on their customers being loyal

 
Gujarat, 13 March, 2008 : The Gujarat loyalty industry is still in its infancy as most programs are very much standalone, points-driven or discounting schemes. Many companies have figured out how to deliver customer satisfaction, but they've not yet figured out how to earn loyalty anywhere near those levels. Many companies also tend not to do enough with their loyalty program data to make the customer feel special. Rewards programs cost companies, on average, between 2 percent and 10 percent of a customer's total spending at a given store. Once you have identified the top 20 or 30 percent of your customers, many companies tend not to market to the bottom tier because it's not economical, and end up leaving a majority of their customers frustrated or unable to accrue enough points to make participation in these programs seem like a real advantage.

 
Growth in individual sectors

 
Retail
is presently the largest employer after agriculture. In the year 2004, the size of Indian organized retail industry was Rs 28,000 Crore but currently is projected to grow at the rate of 25%-30% p.a. and is estimated to reach an astounding Rs 1, 00,000 Crore by 2010.

Telecom industry is the fastest growing telecommunication market in the world, and with 264.77 million telephone connections, is the third largest telecom market.

 Airline industry is growing at a rate of 18 per cent annually and India is to be a driving force behind the world’s civil aviation business that is globally expected to grow from US$ 5.1 billion to US$ 5.6 billion this year.

Along with the above banking, oil & gas and online trade industry is also growing phenomenally which is good news for the loyalty and rewards industry as its importance will only grow with increased competition in the market. Loyalty programs help organisations increase and retain their customer base. Loyalty programs are best suited for highly competitive business environments, often where the service levels and products are not highly differentiated like airlines, retail, banking or telecommunications to name a few. Though the loyalty market in India is at a nascent stage, Loyalty programs in India have penetrated every major vertical: hospitality, travel, retail, telecoms, media outlets, and consumables.

 
Most companies cannot count on their customers being loyal and hence they are vulnerable to competition. All the sectors that are growing at a fast pace are increasingly exhibiting a need for loyalty programs. Having a single loyalty program will only help in sustaining existing clients but will not involve attracting new customers. The biggest challenge facing Indian marketers is the one facing marketers the world over; deriving actionable insight from customer data. While the more established sectors of fuel retail, travel are fairly established, most marketers still exist in a patchwork of segments with little knowledge of how to construct, administer and use loyalty programs.

 
A well designed loyalty scheme could be considered as a useful instrument for continuous tracking of customers, depicting the change in their buying patterns, latest fashion trends and how much customers are willing to spend on a particular product.

 

About imint:

i-mint is India’s largest customer rewards program to provide their customers with a unique shopping experience. Introduced by Loyalty Solutions and Research Limited (LSRL), a company funded by ICICI Venture, i-mint is India’s first and truly national multiple partner loyalty and consumer rewards program, where India’s leading brands Airtel, HPCL, ICICI Bank, Indian now Air India, Lifestyle and MakeMyTrip.com have come together to form a single rewards platform. In addition to these partners imint has i-mint has more than 2500 merchant outlets and a customer base of over 3 million members across India with the numbers growing at a rapid pace. Imint is currently present in over 20 cities across India.

 
Key features of i-mint:

  • i-mint has been designed as a true national program with acceptance across cities, across products and services and across various payment modes such as cash, cheque, credit and debit transactions.
  • ‘earn while you shop’ is now possible with i-mint. The program offers opportunity to earn points from more than one partner on each transaction. Rapid point accumulation leads to faster redemption. Members will be able to redeem points at a slab as low as 250 points. The online redemption catalogue contains over 200 exciting rewards from partners as well as from other merchants, across various categories and at all point levels. i-mint promises unique rewards for customers like Gift vouchers, Jewelry, Household Appliances, Electronics etc
  • As the program unfolds, LSRL plans to scale up the program by adding more exciting features. i-mint will help customers redeem real time at selected locations, giving consumers the ultimate choice to earn and burn anywhere.
  • To summarize, i-mint unleashes an unmatched platform to very quickly accumulate points for day to day spends and choose at will from an extensively furbished redemption catalogue. Now whatever the consumer may do, the consumer always mints rewards!