In today’s world of the digital revolution, consumers are flush with choice and conditioned to expect immediate service and seamless interactions. Even though India has been one of the favorites for most brands globally, keeping pace with its diverse strata of society coupled with a gigantic population is a different level challenge altogether. Establishing loyalty in this scenario is a dream goal for many.
According to the research by Collinson group in 2016, 81% of Indian consumers agreed that loyalty program made them purchase more and 82% said that it made them advocate the brand more easily.
The realization that serving an old customer is much cheaper than a new one, has driven companies to focus on ‘retention’ than mere acquisition. Loyal customers have further been found to bond stronger with business, and ready to pay more for premium products.
However distinct and diverse Indian buyer is, like every customer across the globe, they love privileges, value them being prioritized and highly appreciate their brand’s connection and engagement with them.
Loyalty Fox showcases three loyalty programs that have attracted the Indian gaze.
Cashback programs involve a certain percentage of the amount spent by the customer to be returned. These are majorly used to increase the transaction amounts by the customers while reducing their churn rates.
In India, where customer loyalty programs are still developing, cashback programs are an instant hit as a large section of the society chooses to use them on credit cards as well as other e-wallet platforms like Paytm and Google Pay.
“ For the last 4-5 years, I have been regularly using the cashback option for various deals. I think it is a great way to save some extra bucks while making a purchase” Apurva Rajput (College student, 22)
Point-based redemption programs
It is no surprise to note that Indians are highly ROI driven, hence a points-based redemption program delivers the spirit in time.
It essentially combines the points achieved at each transaction made over time by the customer to reach a reward or rather for the points to be ultimately used as a currency. The customers can easily see and verify their point balance, rewards, and redeem via various methods, which makes it highly convenient to use.
This program not only tends to satiate Indian consumers but also helps brands to attain knowledgeable insights about their customers and form their customer data which is often dubbed as “treasure” in today’s world.
Neeta Gupta (housewife, Delhi, 46 ) tells Loyalty Fox that “Every month while grocery shopping, I use some of my points rather than money. I only go to the same store for any of my needs so that my points keep getting added.”
Tier based Loyalty Programs
The tier-based programs utilize the healthy competitive behavior of humans which motivates them to jump up the ladder to newer heights. With an exciting color scheme and phenomenal names, brands choose to introduce their citizens to the tier system while encouraging them to move up. Each tier consists of set privileges and rewards that include free delivery, extended returns to certain tier levels, and many other benefits, which makes customers more inclined to shop from that brand.
Unlike points that could be expired, the tiers allow customers to become lifetime members while also enjoying the feeling of exclusivity that sets them apart from other customers, making this program popular among Indians.
“After joining the gold service of Zomato, I have got amazing offers which I utilize almost every week,” Vaibhavi Mishra (23, Media personnel).
There is a clear appetite for loyalty and customer engagement provided that brands continue to seek into what motivates their customers and continue to innovate and address their evolving expectations.