Exploring Top Loyalty Program Strategies in India

The evolving marketplace in India, marked by fierce competition, shrinking profit margins, and rapid digitization, has made it increasingly challenging for brands to secure brand loyalty. Winning first-time shoppers is tough, but keeping them coming back? That’s the real challenge. While price fluctuations often sway customer behavior, loyal customers stand out—they stick with brands they trust, transcending price wars. Beyond driving revenue, these loyal patrons are the cornerstone of brand equity, amplifying value far beyond the bottom line.

 
Today’s customers, however, demand more than transactional rewards—they seek genuine appreciation and meaningful connections. Recognizing this shift, Indian enterprises are stepping up with innovative loyalty programs that go beyond discounts to create lasting relationships. We’ll explore why it’s time for brands to rethink their loyalty strategies and explore how some of the best loyalty strategies are being implemented in India, leading names in customer engagement.

Why do Indian Enterprises need Robust Loyalty Program Strategies?

When Indian businesses constantly struggle with their competitors, now is the time to shift from traditional loyalty strategies to digitized ones. Customer preferences have evolved as they rely on emotions for their decisions. With advanced technology solutions, they need to build a better connection with customers by empathizing with them, educating them, and standing for core business values.

 
Indian customers are less likely brand fans & more of an experimental lot in terms of shopping. When you want to strengthen your customer relationships in India, you need to widen the scope of your loyalty programs. An ecosystem loyalty approach can give you more reach and help you enhance your overall customer experience. There’s no single success mantra for gaining loyal customers for all the brands. Hence, here we will be sharing the best loyalty program strategies adapted by successful loyalty programs in India.

Loyalty Program Strategies Leveraged By Top Indian Brands

1. Subscription Loyalty Program

Often known as paid, premium, or subscription loyalty programs, this reward system involves a one-time/recurring payment from customers to acclaim member benefits. And the two loyalty programs that stand out here are:

• Amazon Prime – Amazon already has a huge fanbase of its shoppers & users of Amazon Web Services (AWS). It’s been just 5 years since Amazon Prime’s launch in India, then too it is its second market leader with 22.3 million subscribers in 2022.

• By subscribing to Amazon Prime monthly, quarterly or annually, users can unlock the benefits of expedited deliveries, unlock advanced eligibility to discount deals 24-48 hours prior, do unlimited video streaming, check award-winning Amazon originals, stream TV shows, enjoy music, & download Kindle ebooks for free.

• The joy of receiving orders the same day, or just within 24 hours is one of the crucial prime benefits that customers cherish.

• After its video streaming & free music services, we believe there is hardly anyone untouched by Amazon Prime membership, especially post-pandemic.

• Swiggy One – Swiggy’s one membership loyalty program – Swiggy One unlocks plenty of benefits like unlimited free deliveries, discounts at restaurants, access to Swiggy Genie & meat shops, and Swiggy Instamart across 500 locations.

• Profile of Swiggy Super membership users was automatically upgraded to Swiggy One & other members of Swiggy’s previous loyalty programs can opt for an upgrade distinctly.

• Swiggy One is definitely a great bet for the younger demographic living in rental accommodation or often ordering groceries & food online. Those who are in dilemma can subscribe to a quarterly plan & upgrade to an annual membership later.

2. Experiential Loyalty Program

Make your customers feel delighted offering them memorable experiences. Make them crave for such once-in-a-lifetime movements with experiential loyalty rewards. Hospitality & wellness businesses can count on such loyalty program strategies.

• Club Vistara: It is India’s fastest rewarding Frequent Flyer Program (FFP) which follows the tier model. The more you fly, the more you unlock elite tier benefits & claim experiential rewards.
• Club Vistara has 4 tiers – Base, Silver, Gold, and Platinum based on your score of CV points. Club Vistara members earn Tier Points and CV Points per INR 100 as per their tier status on the base fare of Vistara flights.
• Flyers can earn CV points traveling with Vistara’s airline partners & shopping from their non-airline partners. They can get access to Vistara’s lounge before boarding on flights, and opt for free/discounted car rentals.
• With elite tiers, flyers can claim flight privileges, fee waivers, airport privileges, partner privileges, & get complimentary vouchers. They can do point transfers within the family or to their referrals.
• Flyers can book their accommodations, visit some exotic places, plan their journeys, and get the best dine-in experiences with Vistara’s partners.

Likewise, your brand can enrich customer experiences by creating lifetime memories with them.

3. Value-based Loyalty Program

Integrate human values into your brand and build a deeper connection with your customers. Deploy a loyalty strategy that supports a global or local cause & that exhibits your brand’s initiatives for social responsibility. Such loyalty programs intensify your company’s values, and ethics & associate the emotional inclination of customers to your brand.

• Shiksha: The success of a CSR initiative by P&G ensures that earning loyal customers is not mere points earning. It focuses on the mission of spreading education in India with meager yet accumulated donations from its customers.

• This global philanthropic program was started with the motto of Live, Learn, and Thrive. Since its inception, it has accumulated for the noble cause of making education accessible with the donation of INR 22 crores.

• Shiksha has an e-store on Amazon, through which customers can shop P&G products and support such global & social causes.

• Such programs give you & your customers ownership of helping in the social causes. Also, it clarifies you don’t need huge contributions to make a difference.

4. Coalition Loyalty Program

Due to the popularity of ecosystem loyalty programs, brands are partnering with other businesses to extend reward options for customers. It will help you build new relationships & prosper further your customer base.

• PAYBACK – It is a multi-brand loyalty program that lets customers earn points shopping for daily activities like shopping, payments, grocery, fuel, & more.

• Whether shopping online or in-store, customers can earn PAYBACK points for their spending. Like 4 points for every 100 Rupees spent on shopping from online stores & 2 points for every 200 Rs spent while shopping from Future Group formats like Brand Factory, Central, etc.

• Customers can review products or publications & earn PAYBACK rewards for non-transaction behaviors as well.

• Multi-brand earnings fasten the chances of point accumulation. Further, shoppers can redeem these points to claim discounts or avail offers when shopping next time across any of the brands.

5. Ecosystem Loyalty Program

With increasing disposable income & shift in lifestyle preferences, individuals are looking for premium experiences. To succeed, brands are partnering with other brands regardless of their domains to offer dynamic & personalized experiences to customers.

• Tata Neu – A super app from the Tata group has several trusted brands (Tata CLIQ, Westside, Croma, Bigbasket, AirAsia India, Tata 1mg, IHCL, Qmin, etc.) of Tata group integrated into the single app. It offers exclusive privileges & benefits to its users across categories.

• From lifestyle to grocery orders & travel to luxurious stays, enjoy cross-category shopping experiences. Earn 1 NeuCoin for every spend worth ₹1 on the Tata Neu App & use it to claim other rewards.

• Tata Neu allows you to manage your financials like personal loans & credit lines. You can multiply your wealth with Tata Capital, opt for custom insurance plans, pay bills, & link your bank accounts for easy payment using Tata Pay UPI.

• For unique privileges on Tata brands, Tata Neu is soon launching a subscriber program by which members can get a minimum of 5% additional NeuCoins on every purchase over the app.

• Nature’s Basket SBI Card – Extending its foray into services, SBI in March 2022 partnered with Nature’s Basket – a premium grocery store brand.

• Customers can use their new SBI card to earn up to 20 reward points for every Rs 200 spent at Nature’s basket stores, and 10 points for every Rs 100 spent on dining, movies, & international travel.

• Users can unlock complimentary benefits with BookMyShow movie tickets, welcome gift vouchers, access to higher tiers of Nature’s Basket loyalty program, Taj gift vouchers, etc.

• Additionally, they can opt for online doctor consultations, gift deliveries, and flower deliveries at discounted rates.

• With the exclusive benefits, the SBI card is likely to get more loyal customers in the long run.

Several banks, airlines & even hoteliers are relying on ecosystem loyalty programs for premium customer experiences.

Capillary: Your Go-to Mantra To Customer Loyalty Solutions In India

The key to a successful customer loyalty program strategy lies in one simple principle: truly understanding your customers and consistently evaluating their journeys.

 
Since its inception in India in 1995, loyalty programs have become a staple for enterprises in India. However, as customer demographics and preferences evolve, so must these programs. Staying ahead means regularly analyzing the performance of your loyalty initiatives and adapting them to meet shifting customer expectations. Ready to take your loyalty solutions to the next level? Connect with our experts today to explore how you can design and implement loyalty strategies that drive lasting relationships and business growth.

People also ask:

1. What are some of the best loyalty program strategies in India that are being leveraged?

Top loyalty programs in India for businesses include those from brands like Tata Group, Future Group, and ITC, which utilize advanced customer engagement strategies to enhance customer retention and sales.

2 . What are a few crucial loyalty program strategies to implement?

Indian businesses can implement a successful loyalty program by leveraging data analytics, offering personalized rewards, and integrating with omnichannel marketing to drive customer loyalty and boost sales.

3. Why are loyalty strategies important for Indian retail businesses?

Loyalty programs are important for Indian retail businesses as they help increase customer retention, enhance customer experience, and provide valuable data for targeted marketing, ultimately driving higher sales and profitability.

4. What technology is used in Indian loyalty programs to improve customer engagement?

Indian loyalty programs use technologies like AI-driven analytics, mobile apps, and CRM systems to personalize customer interactions, track customer behavior, and optimize loyalty rewards, leading to improved customer engagement.

5. How can a robust B2B loyalty strategy benefit Indian companies?

A B2B loyalty strategy can benefit Indian enterprises by fostering long-term relationships with business clients, providing tailored rewards, and increasing repeat business, which contributes to sustainable growth and higher revenue.

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Writer by profession & an artist by passion. Aprajeeta spends most of her days writing the tales of brands and those of her imagination. In odd hours you find her reading literature & diving deeper into ecommerce sciences. Art fuels her creativity & she adores experimenting with it.