Loyalty program has become a common culture of most of the companies in the market. This method is considered the best way to benefit the customers and the company. Whether you purchase something online or offline, you receive some points or discount coupens that is a form of the loyalty program.
These collected coins could be reimbursed or you could purchase different eligible items. Loyalty programs in India are getting popular gradually, and their evolvement is improving rapidly. The beauty of these reward points is that most brands now allow their customers to redeem them at multiple points of contact, instead of one at one place, customer can earn and burn with a lot of ease now.
Factors Causing the Popularity of Loyalty Programs in India:
There are several potential factors that cause the popularity of these loyalty programs. We will discuss a few of them below. So, let us get started:
- Since the announcement of demonetization, there is a significant rise in the demand and uses of loyalty programs in India. People start relying more and more on virtual payment applications. These applications offered several discount vouchers and payback. This offered the benefits to the company and the brand respectively.
- Save paper movement is another factor promoting the use of virtual money and eventually, the loyalty program. Most of the loyalty programs are coin based where the customer earns some money after purchasing a particular product. Once the purchase is made, a few coins are added to the customer’s account. Later on the fixed deposit, the customer could redeem these coins and successfully make the payment.
- Loyalty cards are in use for quite a time now. People receive these cards after completing the application process. These cards provide extra benefits to the users. The benefits include, extra discounts on purchase, restaurant, or in hotel stay. This way the users could save a significant amount of money.
- Digital payment is a significant factor behind the popularity of loyalty programs in India. Brands are adopting these omnichannel loyalty programs to connect with their customers on a large scale.
- Each e-commerce website uses the tool called a loyalty program to spread awareness among customers of their existence. You must have heard of one of the very popular loyalty programs in India, “Refer and earn”. With this program, one could install the application, and after installation, a few points are rewarded. Some more points get added to the bag when someone you refer has installed the application.
- Loyalty programs are sophisticated and multi-channel, with the option of redemption available across several industries, unlike the traditional spend and get model. Brands are using these multi-channel loyalty programs to connect their customers to multiple touch points.
Expansion of Loyalty Programs in India:
Loyalty programs are grabbing the attention of customers and the companies. These programs are providing equal benefits to everyone. Such a feeling of loyalty stems from continuously positive customers experiences, high level of satisfaction, and a sense of value derived from the products of services of a certain brand.
A loyalty program usually offers customers access to free merchandise, reward, coupons, and advance and an exclusive preview of the new products. The importance of loyalty program is pretty clear, and people are getting benefitted out of these. Loyalty card users also have quite pleasant stories to share about the loyalty program.