Loyalty Card Programs In Indian Retailing

Details

Case Code : CLMM017
Publication date : 2005
Subject : Marketing Management
Industry : Retailing
Length : 03 Pages
Price : Rs. 100

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Key words:

Frequent-Shopper Programs, Repeat Buyers, Piramyd, Piramal Group, Piramyd Power Club, Akbarally's, Loyalty Card Program, Customer Loyalty, First Citizen's Club, Westside, Tata Group, Lakme, Taj Group of Hotels, Retailers, Customer Relations, CitiBank, HSBC, Customer Loyalty

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

With increasing competition, retailers have to find ways to retain existing customers while trying to woo new customers at the same time. One way to retain customers is to offer incentives for repeat buyers. This is done by offering card-based frequent-shopper programs. The caselet talks about the growth of loyalty card programs in the Indian retailing industry. It describes the features of the loyalty card programs run by some of the prominent Indian retailers including Shoppers' Stop, Piramyd, Akbarally's, and Ebony.

Issues:    » Loyalty card programs and customer loyalty    » Customer relationship management through loyalty card programs    » Design and implementation of loyalty card programs Introduction With increasing competition, retailers have to find ways to retain existing customers while trying to woo new customers at the same time. One way to retain customers is to offer incentives for repeat buyers.

This is done by offering card-based frequent-shopper programs. For example, Piramyd, the Piramal group's retail arm, which has outlets in Mumbai and Pune, offers the Piramyd Power Club (PCC) membership card for loyal customers. The card offers discounts, previews, special offers and a host of other benefits to keep shoppers happy.

Other retailers have similar schemes. Shoppers' Stop offers the First Citizen's Club (FCC), Westside has Club West, the Mumbai-based departmental store, Akbarally's, gives its loyal customers the Valyou card, and Ebony in Delhi offer its customers, membership to the Ebony Elite club...

Questions for Discussion:

1. List out the pros and cons of the loyalty card programs

2. What are the ways through which a company can obtain the maximum benefits from the loyalty card programs?