LOYALTY PROGRAMME

What does loyalty mean to businesses ?

Repeat
Purchases ?

Retention of Create Profitable

Customers ? Customers ?

Acquisition of
Customers ? LOYALTY More Information
on Customers ?

Just Another
Reward Loyal
Marketing Program ?
Customers ?

Reality …….….could be all of the above !!!!

HOW CAN A LOYALTY PROGRAMME
BENEFIT?
 Build a long lasting relationship with the
customer.
 Go beyond product satisfaction to overall
brand experience.
 Developing better business understanding for
driving footfalls and increasing ROI.
 Generate frequent visits.
 Increasing on-the-spot spends.
DESIGNING THE PROGRAMME
 A Retail customer – Higher Segments
 Strategy
 Award loyalty with a suite of discounts, offers
Services.
 Primary use of points for determining level of
discounts/offers and determining grade.
 Points earn & burn.
 Give extra discount on special occasion such as
birthday and marriage and anniversary.
 Grades based on:
Number of purchases, value of purchase,
regularity of purchase.
 Benefits based on:
Personalized discounts/offers.
Simple useful services – moments of delight.
CRM AT PANTALOONS
 CRM is practiced through the “GREEN
CARD” program
 Green Card loyalty program contributes
approx. 55% in profitability of Pantaloons
across country
 Pantaloons maintains a customer
database of 21 lac across India
 Software used is the ‘Customer Loyalty
Program’
SHOP AND GET REWARDS
WORKING OF THE CRM SOFTWARE
(Customer Loyalty Program)
7 STAR PRIVILEGES – A BIG “WOW”
TYPE OF PROGRAMME

LOYALTY

CENTRALIZED DECENTARLIZED
HOW WE CAN MANAGE THESE
PROGRAMS?

LOYALTY

CEN TRALI ZED DECENTARLIZED

PLA STICCARD PAPER CA RD

ENTRY FEES
 Minimum purchase of R.s 5000.
customer get
 Loyalty card. (silver)

 Goody bag.

 3% of total purchase should be added in there

account.

 If purchase if less than 5000

charge R.s 500
Customer get
 Loyalty card. (silver)

 R.s 1000 gift voucher.

 Goody bag.

 3% of total purchase should be added in there

CENTRALIZED DATABASE
 CATEGORY

PLATINUM

GOLD

SILVER
CATEGORY
5000 to 25000
25001 to 50000
+50000
REWARDS
3% Total purchase
5% Total purchase
10% Total purchase

* Burn on next purchase

REWARDS
Silver Gold Platinum

1st purchase 5000 25000 50000

1 to 10 3% 4% 5%

11 Burning Burning Burning

12 to 21 4% 5% 6%

22 Burning Burning Burning

23 to 32 5% 6% 7%
CARD
 Contain unique identity number (UIN)
 Card is valid for 1 year.
 If card is missed.
 New card will be issued.
 Old card should be blocked.
 No charges applicable.
 Renewal of card.
 If total purchase more then 1 lac. Free renewal for
next year.
 If total purchase less then 1 lac. Charge R.s 500 and
provide voucher of worth R.s 1000.
 Online burn of point.
ADVANTAGE
 Point are burn all over the country.
 Easy to carry.
 Maintain prestige of organization.
 Data is always updated.
DECENTRALIZED
CONT…
5000 to 25000
25001 to 50000
+50000
REWARDS
3% Total purchase
5% Total purchase
10% Total purchase

* Burn on next purchase

REWARDS
Silver Gold Platinum

1st purchase 5000 25000 50000

1 to 10 3% 4% 5%

11 Burning Burning Burning

12 to 21 4% 5% 6%

22 Burning Burning Burning

23 to 32 5% 6% 7%
ONE MORE OPTION…….
 There are no category.
 Discount is given on there number of their
invoices.
1st purchase 5000
1 to 10 3%
11 Burning
12 to 21 5%
22 Burning
21 to 30 10%

* Burn on next purchase.

BENIFITS
 Economical.
 Increase number of invoices.
 Points are burn all over the country.
 No technical staff required.
 FACTS AND FIGURE
 Recent study found that 90% of Americans
actively participate in some type of loyalty
programs. Forrester research study found
that 54% of primary US grocery shoppers
belong to 2 or more programs.
 In UK, 92%of UK consumers participated in a
loyalty program of which 72% were members
of 2 or more programs. According to a study
by Byrom et al. (2001)10, there were 150
schemes in operation resulting in the
circulation of more than 40 million cards.
CONT….
 Shoppers Stop‘s customer loyalty program is
called The First Citizen. The program offers
its members an opportunity to collect points
and avail of special benefits. Currently,
Shoppers‘ Stop has a database of over 2.5
lakh members who contribute to nearly 65%
of the total sales of Shoppers‘ Stop. They
also offer a co-branded credit card with
Citibank for their members.
 Subhiksha claims 80% of sales comes from
loyalty members.
 BIBLIOGRAPHY
 www.pantaloon.com
 www.scribed.com
 http://company.monsterindia.com/shoppersi
n/
 http://www.sebi.gov.in/dp/pantaloon.pdf
 http://www.consumercomplaints.in/complai
nts/big-bazar--future-card-c81155.html
THANK YOU