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