NEED OF THIS PROGRAM

Loyalty Programs not only discourage existing customers from switching to new one but also give businesses an edge with the competitors. If done properly Loyalty Programs can generate upto 20 % of the company’s profit.

In India the companies are now utilising Loyalty Programs more than ever before as now they understand the importance of retaining existing customers and choose to implement a program directed specifically at building customer loyalty.

Basically Loyalty Program is a marketing tool initiated by a business that rewards purchasing behaviour thus increasing the customer’s edge to stay loyal to the company. A Loyalty Program may offer convenience, reward points, free gifts, lucky draws or any other benefits that could entice the loyalty of a customer.

Since India is a nascent market for Loyalty Programs and has tremendous potential. Consumer choices can be shaped through unparalleled access to information.

The Need of a Loyalty Program for Indian evolving consumer are:-

1. Becoming increasing sophisticated.

2. Exposure to modern retail formats.

3. Increasing awareness of brands and discounts.

4. Time of higher values than money.

5. Becoming more experimental.

6. Plethora of choices.

7. Want to be served for every hard earned money they pay.