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Tag: ICLP India

  • New wave of loyalty in India – Digital & Data

    New wave of loyalty in India – Digital & Data

    Retailers and many other companies in India have been struggling with loyalty programmes as consumers have remained cold to the concept which was introduced a decade ago. However, the face of loyalty marketing in India is beginning to change as marketers are seeking to engender a new wave of loyalty to connect with the consumers and to delve deeper into their behaviour by moving beyond transactions to create effective and engaging interactions.

     

    Today, the virtual world is gaining prominence and consumers prefer easy access to everything around them with ‘Just One Click Away’ approach. This has compelled many marketers to adopt digital as a new wave for loyalty marketing in India, using mobile phones and social media to connect with their member base, creating two–way active channels of communication.

     

    Indian companies too are realising that the profile of their member base is changing with time. Once a realm of older and well-heeled patrons, exclusive loyalty clubs today are breaking down many of these barriers. Members are becoming younger, networked and more demanding. It is no longer about funneling seemingly special offers to a loyal customer, today, the consumers want to be heard and instantly gratified for their behaviour. They want programmes to be tailored encompassing their needs.

     

    Whether it is airlines, retailers, hoteliers, financial services or other companies, all are using or switching to this emerging digital platform to drive consumer engagement. One of the leading low cost carriers (LCCs) in India has introduced their loyalty programme purely based on mobile – from checking of points to redeeming of points to receiving trigger-based communication. Beyond travel, this technology is also seeing a huge acceptability among the retailers from lifestyle to footwear to fine dining to QSR. Even the niche players like spa and salon, cafes and lounges and frozen yogurt are using mobile-based technology not only to connect with the consumers but also to drive involvement through two-way dialogue.

     

    The increasing usage of smart phones among India’s core population is paving way for new technologies, and companies are focusing to capture this momentum by providing an enriching experience with a customised solution. Brands are driving loyalty strongly through social media where, today, consumers can earn points for tagging a location, reviews, comments, participating in polls and more.

     

    In fact, one FMCG company in India is riding on this new medium to move beyond transactions and create more interactivity directly with consumers. The consumers enrolling for this programme can earn points for participation in polls, votes, referrals, reviews, recommendations and more which can then be redeemed for the goodie bags by the company. The company is trying to build a direct communication channel with the consumers who were majorly served by local store or modern trade.

     

    This emerging technology is not only being limited to drive acquisition or engagement but also to increase retention of consumers through their purchase frequency. A growing multinational men’s apparel that is expanding its footprints in India is adopting mobile technology and social media to drive online purchases. They are introducing a mobile application which is integrated with social media to drive engagement and will also be utilised at POS for making purchases. They are designing a virtual apparels display application which will be tailored made to the historic purchase trend of the consumers. This will be integrated with the mobile application, so that the consumers can select and purchase via their mobile. Through this, the brand will be able to delve deeper into consumer insights and gain a better understanding of their behaviour. 

     

    The time has come when a greater attempt is being made by many brands to understand the consumer using smart analytics, so that the promotions and discounts being offered to the consumers are relevant and can convert to purchase action. This will help to enhance their attractiveness and keep pace with the connected consumer.

     

    A spate of irrelevant marketing emails after signing on a loyalty programme is one of the biggest complaints by consumers, like a company sending offers about motherhood products to an unmarried customer for whom it has no relevance or ability to meet a need.

     

    So, to counter this problem, companies are employing technological tools to gather information about the consumers that includes details beyond their demographic profile like age, frequency of visit, buying patterns, item purchase to design offers and promotions that are focused and targeted and are more likely to generate a response from the consumer.

     

    Through this growing avenue, consumers are demanding ease of accessibility. They want offers, promotions and rewards to be easily accessible to them from anywhere whether mobile, social networking or their preferred location and more. They are also looking for seamless experience across all the different channels being used to connect with them.

     

    Real–time offers on the mobile

     

    Today, companies want to capture the attention of consumers while they are on the shop floor to translate into faster turnaround time. Many retailers are broadcasting real-time offers, for example, when a consumer is purchasing a product, the loyalty system will analyse the information and offer him a discount, benefit or freebie on buying that product. These coupons are immediately forwarded to their mobile for a stronger call to action. 

     

    Similarly, some apparel stores offer rewards to the consumer whenever they visit their store and tag them on social media. The system will read the information and based on their historic data will forward on the spot reward/offer on their mobile to lure them into impromptu in-store purchases.

     

    (These are purely personal views of ICLP India general manager Mark Spicer and indiantelevision.com does not subscribe to these views)

  • “Competition is the biggest challenge in loyalty marketing”

    “Competition is the biggest challenge in loyalty marketing”

    MUMBAI: With retail chains, international labels, new airlines and hotels entering India in a big way, the brands are trying to woo consumers interestingly. One way in which brands are connecting with consumers more efficiently is by getting in to loyalty marketing. Loyalty marketing, which is considered to be personal, is now trying to use the power of technology in a big way.

     

    To understand more on this,indiantelevision.com recently met with ICLP India general manager Mark Spicer, who has been in the loyalty and incentives industry for over two decades now. Spicer spoke about marketing during tough times, the potential of loyalty marketing and much more…

     

    What according to you is the size of loyalty marketing in India?

     

    It can be noted that the current size of loyalty marketing in India is around $1.5 billion, as of the beginning of this calendar year. The numbers are expected to shoot up and one can expect double digit growth by end of the year.

     

    What are Indian brands doing right by getting into loyalty marketing?

     

    Many Indian brands have started interesting initiatives using loyalty marketing. What brands now need to focus on is to take communication to the next level. According to me, this is the right time when brands can jump into the picture to grab the attention and confidence of consumers. Today, consumers’ expectations have become dynamic. It will be extremely difficult to track their moves if you are not focused.

     

    What makes you say that it is the right time for loyalty marketing to take off in India?

     

    The changing market scenario is the major reason why I think brands should be keen in gaining the confidence of consumers. The Indian economy is showing a slowdown and this is an apt time for brands to jump in. Loyalty marketing has an immense potential in an emerging market like India.

     

    It can be observed that with an increase in inflation rate, consumer decisions are most likely to fluctuate. How can loyalty marketing help brands sustain themselves?

     

    The first step that brands should take during tough times is to clearly understand their consumers. The task that brands should put on their list is to make clear the road plan. Consumers like being valued. Also, it can be noted that brands need to make communication individual-specific. All this can happen only when brands start getting engagement in marketing. Consumers look for alternative product lines during inflation. Brands need to consider this as an opportunity and make the best use of it.

     

    Many brands use personal media such as social media and mobile in their loyalty marketing mix. Don’t you think this can intrude on a consumer’s privacy?

     

    Brands should give consumers the liberty to choose their medium of communication. Consumers are choosy about where they receive their marketing messages. Even though permission marketing exists with emergence of social media today, a lot of communication reaches a consumer at a faster rate.

     

    Consumers today have better control on communication. Brands need to map a costumer’s journey in loyalty marketing. Having said that, it is necessary that brands take note of how many times a message reaches a consumer and the medium through which it is sent.

     

    What are the challenges loyalty marketing can face in a diverse market like India?

     

    Competition is the biggest challenge in loyalty marketing. With cultural and political diversity, brands need to cater to different needs and deliver memorable experiences to consumers. It is also important for brands to keep on par with the ever evolving technology.

     

    Does talent in India have the right skill sets to take loyalty marketing to the next level?

     

    Talent in India is rich; what needs to be taken care of is to groom them to put data in the right context. Also, talent here can take learnings from other markets to sharpen their skills. The future looks very positive and bright.

     

    Marketing to millennials is a hot topic of discussion these days. How do you think loyalty marketing can deal with millennials who are believed to have a variety of choices?

     

    While dealing with millennials, it is necessary to think ahead of time.  Marketers need to be instant in the way they communicate and need to speak to them in the tone that they understand. Most importantly, data needs to be used smartly to understand their psychology. Marketers also should embed technology in their line of communication.