The Customer Loyalty Glossary From A to Z: Words You Must Know

The Customer Loyalty Glossary From A to Z: Words You Must Know

Unlearning and learning again has become the mantra for businesses to embrace the post-COVID-19 pandemic life. Clearly, if there is one thing that became a hit with brands and is steadily growing this year, it is customer loyalty. A staggering 75% prefer a brand with a loyalty program today! While many novel brand marketing strategies are underway, fostering customer loyalty has now become the top strategy.

Last month, we, at Capillary shortlisted some of the most befitting words that customers, marketers and clients associate with a loyalty program. If you haven’t followed us on our social media page yet, check out this campaign here. Today, we bring it all for you in a captivating infographic. Join us in our journey to unveil the very basics of driving a successful loyalty program, where we bring you the functional facets of the loyalty program, starting from A to Z. Let’s look at it, up and close, what each alphabet denotes in the dictionary of customer loyalty:

A – Acquisition: Gain more customers for your brand every day and eventually convert them into loyal customers

B – Behavioral: Ability of brands to retain customers by rewarding loyal members’ non-transactional behavior

C – CDP: CDP aka Customer Data Platform crafts unified customer profiles by integrating data from online & offline sources

D – Data: End-to-end customer information generated in the course of a buyer’s purchase journey

E – Engagement: How a brand interacts with its customers at different touch points to keep them hooked

F – Frequency: Capturing the intervals of purchases in the buyer’s journey and rewarding them for repeat business

G – Gamification: Games integrated into a loyalty program to turn active mode for inactive customers & build high engagement

H – Hybrid loyalty: Coming together two or more loyalty programs and picking the best elements to benefit customers

I – Influencer: Building social credibility through experts to create brand awareness and attract new customers

J – Journeys: Enables brands to manage, measure, and improve experiences across customer touchpoints and time

K – Know your customers: Verify the identity of your customer using transactional and non-transactional behavior.

L – LDS: Our proprietary framework Loyalty Delivered Sales (LDS) measures the success of a loyalty program by leveraging scientifically proven data-driven methodology.

M – Multi-country loyalty: Running a centralized/decentralized loyalty program strategy across multiple countries

N – Nudge: Well-timed interventions by the system to elicit a desired response from the customer

O – Omnichannel: Deploying multi-channels to give customers a seamless shopping experience

P – Personalization: Personalizing customer experience by tailoring individual’s needs and preferences

Q – QR code-based loyalty: QR code-based loyalty programs enable wider customer reach & promote sustainability

R – Retention: Retain customers by increasing purchase frequency and improving brand association

S – Segmentation: Segmenting the brand’s customer data to first understand and then reward them better

T – Tiers: Different tiers are assigned to customers based on reaching a specific set of points

U – Unified view of customer: A comprehensive view of customer beyond purchase data across different touchpoints

V – Virtual rewards: Offered instantly for specific action exhibited by a customer & delivered on a digital medium

W – Win-Win: A loyalty program is always a win-win for brands and customers alike in the longer run

X – C[X]: Enhancing customer’s overall experience at different touchpoints to create long-term loyalty

Y – Yield: Cultivate the brand’s relationship with customers using loyalty programs to yield future benefits

Z – Zero-party data: Rich data collected directly and proactively shared by the customer

At Capillary, many global brands like Domino’s, Erajaya, PUMA, ASICS, etc. have nailed it with a successful loyalty strategy. To know how your brand can fetch up to 20% topline revenue and customer satisfaction, book a client demo with our expert and discover it for yourself.

Conglomerate Loyalty is Becoming the Largest Grosser in 2022 & Beyond

Conglomerate Loyalty is Becoming the Largest Grosser in 2022 & Beyond

Encapsulating value, convenience and privilege with higher customer retention and stakeholder return, multi-brand conglomerate loyalty programs are thriving in the here-and-now.

At the outset, it’s interesting to note that the potent value proposition of conglomerate loyalty is a direct outcome of the rampant digital transformation of all major retail conglomerates during the pandemic. Their businesses came together in offering their most valued customers better incentives on every purchase. According to the Global Worldpay (FIS), 80% of customers now favor signing up for programs that allow for point redemption across major retailers at once. Enabling rewards for different categories and brands under a singular sign-up, individual businesses made higher profits even as brand loyalty decreased. Moreover, the teaming up of complementary brands meant envisioning new customer engagement strategies that revived the conglomerate loyalty program like never before. 

Single hub, multi-brand loyalty for maximum value 

Customer satisfaction grew most with increasing cart size and order value across those brands, in particular,  that prioritized personalizing their communication through efficient CRM and analytics frameworks. They acted upon centralizing rich customer data towards a singular source of truth before setting up sophisticated tech stacks that could cater to customizing rewards. As a result, businesses within the conglomerate were able to better connect with customers who showed high affinity towards multiple brands, at once, over individual purchaseS. Thus, while brand loyalty suffered from consumers’ fickle-mindedness, conglomerate loyalty improved overall. In fact, with the growing preference for cutting down on retail expenditure in the aftermath of the lockdown’s spending reprioritization, this trend thereby became the most profitable for large corporations in 2022. 

This is only the beginning. It is expected that, over the next three years, conglomerate loyalty programs will redefine the CRM ecosystem by optimizing both topline and bottom line effectiveness for disparate business divisions at once. A good example of innovation powering growth within the conglomerate loyalty sphere is Wipro’s single hub loyalty program in their largest serviceable market, the Middle East. Designed in 2021, Wipro, the retail giant, successfully managed to bring all its businesses within one unique umbrella of rewards and recognition. They implemented the tech solution of automating personalized promotional campaign creation, execution, and management for a massive customer base of 100K+ generating a total annual revenue of ~$9 Bn in the region. Initially, their key challenge was that each business within the conglomerate ran its loyalty programs in silos, making them less impactful on the whole. Moreover, with no customer profiling, testing and optimization, the company was sending out confusing communication that saw a fair bit of duplication. 

Wipro’s decision to, then, orchestrate a common loyalty program completely changed the game in terms of unifying and optimizing their campaign strategies and budgets for all stakeholders involved. 

They deployed SAP Hybris and Oracle Eloqua to implement the centralized CRM framework that built loyalty up to 100% higher in terms of business impact. The biggest advantage of Wipro’s conglomerate loyalty program, however, is the reduction in real-time campaign setup and personalized content creation time from 24 to 2 hours. This is essentially what led to the program’s success and escalation to other markets this year. 

Redefining CRM through effective program management


Streamlining CRM through messaging that avoids duplication in favor of serving unique customer needs is the high point of any well-designed conglomerate loyalty program. It ensures that varied demographic, as well as psychographic or behavioral attributes, are factored in while designing a common set of rewards and recognition for multiple brands. In doing so, the customer is reassured that her preferences are taken care of without having to opt for multiple different programs with their time-consuming sign-ups and monitoring of points earned over time. Effective program management is an essential part of this process for the conglomerate that spontaneously fulfills customer expectations as they change. The data sources that, therefore, merged into one from across brands to make sure that customer profiles get richer.

Thailand’s Central Holding Group – a well-known conglomerate spread across merchandising, hospitality, restaurants and retail – facilitated a 1Card loyalty program. It allowed varied corporations under their investment to benefit equitably from reduced customer churn. Sales increased significantly by 20% for the Group, as nearly 7.2Mn customers were able to redeem coupons and discount codes across many brands at once. 

One-to-one marketing communication was the winning CRM strategy as high-paying, high-value customers were delighted by personalized offers they could not resist over time. 

The accumulation of points from across services acts as a lever with which to entice buyers in the long haul with birthday messages and refer a friend add-ons. The flexibility of, then, significantly lowering the overall purchase amount for many different products through high points redemption is one that is sustainable to build equity. Moreover, Central Group’s 1Card members receive rewards after every purchase that they could use on the very next one, increasing affinity for the brands. A great user experience aided the conversions as is always the case with any successful conglomerate loyalty program. 


Taking other markets by storm… 

Similarly in other major markets, conglomerates are launching unique loyalty programs tailored to the cultural and personal needs of their customers. In India, the landscape is reaching a mature stage with JIO, ABFRL and other leading groups investing heavily into singular programs for their diverse retail offerings. In Vietnam, Capillary Technologies came together with one of the largest investment groups to launch innovative new features for the nation’s largest and most successful coalition loyalty program that saw revenue growth of over 53% during COVID. This winning strategy is a breakthrough even for markets that are in a fairly nascent stage in their digital transformation journeys such as Japan, Indonesia and the Philippines.

Single technology accelerators are at the very heart of ensuring that the customer experience offered by conglomerate loyalty programs optimizes omnichannel value for all parties involved. Ultimately, however, it is the customer that is benefitting the most from reaping the highest value rewards for everything that they desire from the conglomerate’s e-commerce offerings at one go. The ease of a single sign-up and the customization of rewards is the best, so far, in terms of multi-brand loyalty but the sky’s the limit for tech and marketing teams to come together in mapping the road ahead in 2022 and beyond.

Reprogramming CPG for Experiential and DTC Marketing

Reprogramming CPG for Experiential and DTC Marketing

With more than one-third of consumers continuing to switch brands/retailers based on personal value and interests, the CPG industry has come a long way. This is quite a radical shift from the consumer trends observed a few years back where preference was given to affordability and savings that a particular product offered. Clearly, there was a dire need for CPG brands to engage with their customers to push brand growth and connect with them at different touchpoints in their buying journey. This holistic consumer data management strategy is a prerequisite to building a direct relationship between brands and consumers. CPG brands are thus interacting with consumers by offering experiential rewards and creating memorable experiences.

In Capillary’s recent webinar on CPG in 2022: Outlook, Trends & Strategies, guest speaker Sucharita Kodali (VP, Principal Analyst, Forrester) spoke about the burgeoning importance of DTC in the CPG industry. We, at Capillary, further continue this indispensable conversation in a candid Q&A with her where she addresses DTC in detail, the post-pandemic surge in brand switchers, and how socially conscious offerings may promote sustainability for the CPG industry.


Read the Full Q&A
All You Need To Know About Data Privacy

All You Need To Know About Data Privacy

It is believed that the universe is made of atoms but given the digital wave orbiting our planet; one can vouch that the universe is made of data.

An integral asset, an uncompromised entity – Data Privacy would now garner more eyeballs than ever. As we dive deeper into the complexities revolved around it, let’s first understand data privacy in its entirety. Simply put, just like you rent lockers in banks to secure your valuables, data privacy allows you to lock your personal data. Data privacy enables you to protect your data by focusing on how to manage, store and share it with third parties thereby aligning with the laws and regulations of different countries and governing bodies.

What Makes Data Protection So Crucial

Needless to say that being part of a social community where sharing data is a common practice, safeguarding data gains utmost importance. While the responsible use of data can be a game-changer in driving brands, businesses, countries even. Its misuse, however, could lead to irreparable consequences and permanent damage to a brand’s goodwill. Data breaching, as is called, can hamper the secured information of an organization, government, and individual; by putting it for the wrong use. We all know that Data is sensitive yet 36 billion records were exposed owing to data breaches in just the first half of 2020 This has enabled many brands and platforms to consume data and ensure data security and privacy remain the utmost priority for the consumer.

Going by the last two years’ facts and figures, when the digital footprint of mankind increased to its maximum, data is spreading far and wide. On an average day, we are exposed to so many adverts, e-mailers, and direct messages that we have lost count of the exact number. Data has become the quintessential commodity in every brand’s strategy. In fact, Capillary’s last webinar on the data-driven approach to customer engagement would have you center on one key question – We all know that data is the answer. But are customers willing to share it? If yes, how much data should ideally be shared? Before we proceed, here are some startling facts from the webinar to keep you hooked:


These statistics definitely echo people’s sentiments. There is no right answer to how much data we should share as that boils down to everyone’s own discretion. In a marketing arena where the customer is the king, their right to understand how their data is being utilized gains precedence. Given the norms, organizations now need to culturally change their pre-defined marketing practices and marketers must ensure transparency as part of their data strategies. But for marketers, there is definitely more to dive into when it comes to how to protect the data that enables strategic business decisions to drive brand revenue growth and overall goodwill. Thus, a marketer’s role in data privacy is more crucial because if they falter, they risk the brand image.

Data Privacy: A Look at the Global Picture


The above timeline illustrates the dire need to guard data – personal or professional with authentic norms. No wonder, it’s important for every individual, brand, organization to be compliant in this aspect. In fact, organizations that stay compliant with data protection have a competitive advantage over other players in the industry. For instance, when Apple Inc. stated that privacy is a human right, their customer advocacy swelled up. With the right set of data protection strategies in place, companies can gain the trust and advocacy of their customers, stakeholders, and clients.

Our Approach: Data Privacy at Capillary

At Capillary, our teams deal with innumerable large data sets for different clients. Data sets that are managed, distilled, and secured to derive high consumer engagement for our brands. For us, data security measures remain intact from day one. Data at rest is encrypted with state-of-the-art 128-256 bit keys. To credibly action our data protection strategy, we have a dedicated team headed by the Chief Information Security Officer (CISO) that consistently looks at the security element of the data. All production infrastructure is architected to sit within isolated Virtual Private Clouds (separate for computing, and storage). We adhere to a neat approach entailed below that allows us to be transparent to our clients.

1. Auditing

Capillary’s Information Security Management Forum (ISMF) performs Internal IS Audits on a periodic basis. Extensive audit logs are maintained for Capillary’s systems to investigate any suspected breaches, etc. assessing security controls, server provisioning, disaster recovery, and business continuity. Besides this, we also conduct consistent Audit Trails of all system actions that are readily available.

2. Client Assessment

At Capillary, we believe in customer transparency when any security vulnerabilities are discovered or reported. We use industry-standard bug bounty programs like SafeHats to engage with security researchers in a collaborative way. We have successfully undergone security assessments conducted by our clients including some of the leading global names across different industries.

data-privacy-capillary-security-partners (1)

3. Platforms

Our platforms are well-secured and follow the below practices to ensure data protection at all levels.

  • Data Processing & Transfers: All the data transfers between client stores and warehouses and the cloud use secure FTP connections. When data is being transferred it can be in an encrypted format, if required. Larger data sets using raw files/flat files are transferred through a secured Capillary application.
  • Role-based access control: The access control team provides the required level of access to the data for specific employees and clients. Access is immediately revoked when an employee’s record is terminated in Capillary’s HR system within 30 days.
  • Reports: All client reports and dashboards are password encrypted and no raw data is sent with these reports. All members and Capillary employees have restricted access to the engagement they belong to. The access grants are reviewed every 90 days, and explicit pre-approval is required, failing which, access to the resource is revoked.

4. People

Two-factor authentication is used at all access points, including access to the development, pre-production, and production environments using dedicated VPN tunnels.

  • Capillary access and administration of logical security rely on user IDs, passwords, and secure LDAP to authenticate users to services, resources, and devices as well as to authorize the appropriate level of access for the user.
  • Capillary Security has established a password policy with required configurations and expiration intervals.

Our Certifications: Data Security at Capillary

We are certified by the ISO, PCI, compliant with SOC2, and GDPR compliant. This clearly highlights that with Capillary Technologies’ platform, there will be no security breaches and cyber-attacks as the architecture is strongly held. All this is to ensure clients’ data is guarded every time for their services.

And a case study about our data protection measures…

Capillary prides itself in following the data protection policies for all its clients to protect their consumer data. Our data security measures are widely known. In fact, Trend Micro, the multinational cyber security software company also elaborated on how Capillary Technologies optimizes security and visibility for its cloud platforms. You could read the detailed case study here.

5 Must Incorporate Marketing Strategies For Lunar New Year Campaign

5 Must Incorporate Marketing Strategies For Lunar New Year Campaign

Roaring high this 2022 is definitely the festive spirit of people celebrating the Lunar New Year (aka the Chinese New Year) across the world. After all this year is all about the year of the Tiger. Knowing that the past two years have been tumultuous, the year of tiger reminds people to emerge stronger than before, come what may. Every year, the festivity begins with the first new moon and ends on the first full moon of the lunar calendar which is why the holidays last for days and even weeks especially in South East Asia regions like China, Hong Kong, Singapore, Malaysia, South Korea, Taiwan, and Vietnam.

Retailers across the globe brace themselves for this festive bonanza and gear up for a positive start to the year with some grand in-store décor and incredible promotion campaigns. As with most holiday seasons across the globe, the Chinese New Year too is a huge opportunity for retailers to sell their goods and services using powerful marketing strategies. As we step into this auspicious period, let’s take a look at how some of the popular brands are celebrating the Chinese New Year this 2022 and syncing it with innovative strategies across the retail landscape.

1. Drive engagement with emotional loyalty


While incorporating the annual theme of the Chinese New Year in a marketing campaign can drive higher engagement, brands must also work on emotionally connecting with the people. The traditional Chinese New Year is high on people’s emotions. A reason why launching emotional loyalty programs specifically around this time of the year could be one of the strongest levers. A recent Forrester report states that customers spend more when they are emotionally connected with a brand. Place your bets on redeemers who often tend to shop more if emotionally engaged at the right time. Here is a quick guide on running successful emotional loyalty programs. Knowing that the Chinese New Year is also about gifting besides regular shopping, an effectively designed emotional loyalty program would eventually yield higher revenue and foster brand loyalty.

2. Empower your offline marketing promotions with festive contests

Besides store décor resonating with the Chinese New Year celebration, special in-store promotions must be promoted a week or two leading to the Lunar New Year. It is thus very important for a brand to time their offline promotions. Introducing QR codes in your store alleys for surprise offers or inviting your loyal customers for an advance preview of a new festive collection might just do the trick. Many brands also plan lucky draw contests with grand prizes to build enthusiasm around this time of the year.

3. Livestreaming in the post COVID-19 times


Needless to say, livestreaming has become one of the most popular sales channels in China and has picked up incessantly since 2020. Famous luxury brands have also shown keen interest in this medium. From L’Oreal to Louis Vuitton, brands are marketing their products like never before on the top ecommerce platforms in the region as part of their larger brand marketing strategy. But does it slay only in China? Not really! The livestreaming industry is touted to be valued from to $50 billion in annual US sales by 2023. Given the virus mutating into variants and surprising the world almost every year till now, it is time brands incorporate this strategy and play their Chinese New Year card well.

4. Building at-home surprises with experiential loyalty programs

Remember the McDonald’s campaign in 2016 where a Ronald doll came home for the Lunar New Year holiday? The tradition of Lunar New Year has always been about family. People come home, take off during this period to celebrate it with their families. Brands thus need to create similar experiences to sustain excitement by introducing campaigns like a food brand sharing online recipes, wellness brands opting for online fitness programs or engaging audiences with gamified experiences like seasonal quizzes, mystery offers, etc. The traditional dine at home experience with loved ones must be leveraged by brands by building experiential strategies that focus on creating these experiences, even at home.

5. Multifold your social media interaction


Brands’ presence on social media is indispensable. And hence, brands need to be aggressively active across regular as well as regional social media channels like WeChat, Weibo, Instagram, Facebook, Twitter, etc. during this festive time. Creating promotional videos on your app or website to launch a new product around the Lunar New Year would definitely grab more eyeballs. A recent report by Cisco states that online video accounted for approximately 79% traffic in 2021 worldwide. In a digital-first world, it is imperative for brands to connect with customers on the right channel to reap maximum benefits.

With the Lunar New Year approaching soon, brands and businesses are scaling up to capitalize on this opportunity. You don’t always have to break the bank to gain benefits from the festive season, a thorough campaign planning with seasoned experts will enable you to achieve all of this with minimum cost. At Capillary, our experts help you achieve just that, book a demo to know it all.

Top 5 Trends That Are Revolutionizing CPG Industry

Top 5 Trends That Are Revolutionizing CPG Industry

When the world’s leading biscuit brand (Parle Products) increased the price of its crowd favorite- Parle G by 6-7% in 2021, marketers sensed seismic shifts burgeoning in the CPG industry. As much as the hike is owing to the rising input cost, it is also because of the volatility experienced by the brands in supply chain and distribution network post COVID-19 pandemic.

Globally, food prices went up to 3.4% by July 2021. CPG brands have been trying to sync up with the fast-forwarded digitized pace with new formats and channels coming to the forefront. An industry dominated by traditional distribution networks comprising wholesaler, retailer and consumer has drastically leapfrogged to a channel agnostic model now.

If there is one industry that literally started from scratch post-pandemic with fluctuating consumer demands, it is the CPG industry. While the changes might be big, the forthcoming adjustments by CPG brands will be bigger. Let’s take a look at the top CPG trends that reverberated the industry creating disruption across the globe and are setting the stage for 2022.

1. Connected Digital Commerce

Of course, technology plays a crucial role in the rise of the digital consumer. Across the globe, today’s consumer is exposed to many channels (both online and offline) to arrive at a purchasing decision. However, given that ecommerce sales rose to 35% during the pandemic, consumers’ outlook towards procuring goods in this category have undergone a major shift. The utmost important aspect for a CPG brand in the future will be to secure the best position on the digital shelf. New normal highlighting social distancing will keep many shoppers away from the brick and mortar stores thus paving way for ecommerce to flourish even more. This will thus become a new hotbed for promotional activities where brands can sell directly to consumers. Digital technology will completely transform the way a brand will communicate to its consumers. CPG companies are still warming up to the idea of social media but the ones who are raring to take this path will evolve and grow faster.

2. Changing Consumer Patterns


COVID-19 pandemic witnessed many consumers switching their brand loyalties to newer brands. It also saw consumers innovating with newer and never-tried-before products in the CPG category. All this builds a huge testament to the fact that the dynamic consumer behavior is here to stay and brands must act accordingly. While the millennial generation is growing at a steady rate, in some parts of the world – the average consumer is aging faster. CPG brands thus need to keep a steady balance to cater to the different groups seamlessly. Building unique products and services might not be the only answer but offering personalized services for different consumer segments can promise an everlasting consumer brand relationship. This is where customer loyalty programs would become a great resource for brands to stay connected in the entire customer shopping journey.

3. Revamping Distribution Models

CPG brands need to focus on enabling faster deliveries of products more than ever before whether through ecommerce platforms or other newer delivery formats like at-home, BOPIS (buy-online-pick-up-in-store) and curbside delivery. Convenience has gained more prominence when selecting a product. A recent study by Deloitte highlights that more than 50% of consumers are spending more on convenience to fetch a specific product than the product itself. Omnichannel is no longer the new norm that CPG brands will follow, it is all set to become a default in CPG marketing strategy. This will largely have brands communicating to both the channels – Direct To Retailer and Direct To Consumer.

4. Influencer marketing all set to grow bigger


An upcoming avenue in the CPG space, influencer marketing has a massive potential to build a strong connection with today’s digital savvy consumer. Given that social media marketing is growing by leaps and bounds, a brand having an influencer would not only offer an image to the brand but also resonate with the similar audience faster. When influencers share product information or any other related content on a social media platform, it not only generates excitement but also builds a community of similar interest. These communities eventually build high customer engagement by indulging in conversations, sharing content and fostering an environment of brand loyalty.

5. Pivoting to Value With Customer Loyalty Programs & more

While the volatility experienced by CPG brands across both demand and supply side will continue, brands must focus on carving a niche for themselves in this highly competitive market. Price is no longer the only decision-making factor, other factors like building experience, convenience and connectedness have forayed in this industry. The shift from a conventional distribution model to a more value-focused model will be the next big thing. Besides streamlining order management and inventory capabilities, CPG brands need to invest on procuring zero-party data to get started in this digitized revolution. By connecting with consumers through loyalty programs powered by a robust AI intelligence platform, brands can communicate with consumers at the right time and on the right channel. Brands must aim for driving greater enterprise agility with superior marketing capabilities.

A crowded industry like CPG needs to start now to witness the results in the near future. Knowing that a cookie-less world is just around the corner and data is the answer to consumer’s wavering attention span, CPG brands need to invest in a real-time marketing strategy that would encapsulate the consumer buying behavior accurately. At Capillary, several teams collaborate together to create revolutionary customer loyalty programs that could withstand the challenging times and generate results. Chat with one of the team members today to unlock the journey of a successful CPG loyalty program.

10 Loyalty Program Myths That Marketers Must Bust Right Now

10 Loyalty Program Myths That Marketers Must Bust Right Now

The market largely perceives loyalty as a promotional stunt that offers customers only points’ redemption. But this is not the absolute truth.

Much to naysayers’ chagrin, loyalty is a larger canvas for brands to reap benefits from. Loyalty is about how well you understand your customer and recognize their buying behavior appropriately. A loyalty program is simply an enabler, a solution that facilitates this customer journey and effortlessly builds brand loyalty. But, unknowingly loyalty has also built myths of a tall order than facts. So in this blog, let’s dive into the real world of loyalty and unscrew the myths around it to get the facts straight up.

#Myth 1: Loyalty is an expensive affair

A lot of marketers often dread the upfront cost involved in setting up a loyalty program for their brand. However, if one looks at it closely, they would realize that the benefits outdo the cost involved in setting up a loyalty marketing strategy. If acquiring new customers is anything to go by, then retaining old customers’ drives more revenue and sales. A recent study by Bain & Company on customer retention revealed that a meagre 5% increase in customer loyalty can increase the average profit per customer by almost five times. Isn’t it a great statistics to vouch for and frame your next marketing strategy? In fact, what could in turn be expensive is trying to build a new team from scratch to create an in-house loyalty program. This wouldn’t only be time consuming exercise but it will also mean stepping into a new territory with no experience.

#Myth 2: Loyalty doesn’t generate ROI

What I can be assured of when you enroll for this program? How soon can the growth be seen? These are some of the questions on top of marketers’ mind when enrolling for a loyalty program. But remember, loyalty is a long-term journey for any brand. Expecting instant results from a loyalty program isn’t fair as the brand must count both tangible and non-tangible benefits that are involved in it. When a brand ventures into loyalty marketing, a new journey starts. And in this journey, the brand must constantly reinvent their loyalty program keeping abreast with the market changes. It is thus imperative to make your loyalty program appealing to your customers by innovating with newer strategies like gamification, milestone-based rewards, personalized offers, etc.

#Myth 3: Loyalty is a complex setup

While there can be complex programs like a group loyalty program but a good tech partner will know exactly how to make it work. As a brand, working with on an already established loyalty platform will help you transition swiftly. A technology partner who not only has experience but also a proven scalability to offer new benefits. Brands shouldn’t overwhelm themselves by the pressure of implementing the entire program in one go. A quick pilot run in a smaller geography to test and learn always helps to implement better in future with different set of products and more territories.

#Myth 4: Loyalty means discounting


No, no and no! Loyalty is not just giving discounts. Many brands deviated from the loyalty path as they already offer discounts. Most of the finance teams of brands strongly believe in this. As a brand, your journey and relationship with customers need to be defined first. Identify which set of customer segment need discounts and which do not. Accordingly, communicate and send targeted message to win your customer back.

#Myth 5: Loyalty is non-measurable

And the good news is that loyalty is measurable. At Capillary, our experts have created a value-delivery model known as Loyalty Delivered Sales (LDS) framework that assures up to 20% topline revenue. This scientific framework to measure the potential of loyalty programs is a robust approach designed through in-depth study of 100+ programs from 5 industries across 20+ countries. You can read more about this in our joint whitepaper study with BCG here.

#Myth 6: Well-known brands don’t need loyalty

Many noted brands feel their goodwill is enough to pull customers or sustain in the competitive market. However, market dynamics are such that sometimes even the most admired brands lose its loyal customers. Take for instance, the COVID-19 pandemic which had many brand loyalists turn into biggest brand switchers owing to the non-availability of products on the shelves. That is exactly where loyalty steps in and prepares the brands for all situations. We live in the times of experiential marketing where building experiences is far superior than offering a slashed price. At one point, even Starbucks didn’t have a loyalty program because everyone loved the coffee but eventually the brand ventured for a robust loyalty program.

#Myth 7: Gen Z don’t relate to loyalty programs


While it is true that the Generation Z today forms a major percentage of active shoppers and they love to experiment with different brands, it is equally true that this socially active generation loves to avail rewards and offers at the same time. One of the surveys by KPMG in the US market stated that 87% of US millennial are enrolled in at least one loyalty program and are the most actively engaged with that program. Referrals work faster and better with the generation Z. Thus, it would be wrong to say that millennial don’t vie for loyalty programs. If done well, loyalty program has the ability to capture this segment well with engagement-based loyalty programs that are not tied to their overall spend. Rewarding them for referring, consuming content could be considered. Recently, incorporating alternative currencies into your loyalty programs is also gaining popularity with this generation.

#Myth 8: Loyalty means giving a share from your profits

As a brand the rewards you offer to your customers need not always be monetary. You could offer exclusive benefits to your loyal customer base like a preview of your new products or services, informational content, early access to an ongoing sales, etc. Personalize benefits like preferential shopping timeslot, new product launch events, free product sampling to loyal members could be the levers established brands could work on using loyalty programs. Marketers must understand that when their brand offers rewards to the customer; the brand either gets more sales, a new referral, a free download of the app or free reviews, etc. As a brand, you simply incentivize the transactional behavior of your customer for their benefit to grow your brand goodwill and eventually make them a loyal brand ambassador. The way to gather data must not be compromised or ignored. It is a two-way road, you give rewards to get rich data and insights and this will be of prime importance in a cookie-less world couple of years from now.

#Myth 9: Satisfied customers are your loyal customers

Simply sharing reviews or spending more isn’t enough. As a brand, you must be aware of your competitors in the same space and strategize accordingly. Uncertain events like COVID-19 pandemic definitely had many consumers shifting their loyalties to other brands. No one ever imagined but it happened. Hence, as a brand you must look at your customer behavior and reward them from time to time.

#Myth 10: Loyalty means only earning and burning points

Having a simple loyalty program is definitely not enough. Today, loyalty has evolved but unfortunately it is the least evolved dimension in a business’s marketing and growth strategy. Brands need to look beyond simple earn and burn loyalty program to perceive other forms of loyalty as well. There are multiple products of loyalty that brands are unaware of. The 7 types of loyalty products starting from base, personalized, tier, social, digital, dynamic and partner loyalty are cohesively driven by customer behavioral & transactional divergence. It is thus imperative for brands to continue adding more features & benefits to their existing loyalty program to drive effective results.

Why Your Brand Needs To Celebrate This Holiday Season With Loyalty Marketing

Why Your Brand Needs To Celebrate This Holiday Season With Loyalty Marketing

Tis the season! And marketers have more reasons to be merry this holiday season.

Mass vaccination drives this year and slightly restricted gatherings have pushed people to explore creative ways to celebrate the holiday season. As the world embraces and adapts well in the post-pandemic environment, marketers are back with a perfect rebound strategy this year. Newer and unexpected trends have surfaced, consumer behavior has gone through a complete metamorphosis and the consistent upheaval in digitization and big data analysis has opened myriad opportunities to build effective brand marketing campaigns. In fact, the online shopping sales figure this year alone was recorded higher on Cyber Monday than on Black Friday leading to a total revenue generation of $10.7 billion. Trade analysts have estimated Amazon’s holiday sales to grow to $141.6 billion this year. Having said that, online is not the only escapade shoppers are vying for, in-store shopping is back with a bang too running personalized and timed promotional offers targeted for exclusive member groups.

In this blog, we will list out some unique marketing strategies that would work best for brands during this holiday season, let’s pause and review some of the industries who have literally pulled up their socks and are all set to ride the holiday season marketing sleigh.

How Top Industries Are Embracing 2021 Holiday Season


1. CPG

CPG marketers have a lot to look forward to this year compare to the low-key 2020 season. Research says that while 70% of consumers will be more price-conscious, 52% will chose quality while selecting a brand in this season. Putting forth educational content while advertising a brand might reap benefits to CPG marketers. CPG brands also need to seep in nostalgia in their respective consumer groups to strategically build marketing campaigns, For instance, focusing more on families cooking together at home much like the global phenomenon of eating and cooking meals during the Thanksgiving and Christmas Eve dinner is a great tip CPG brands can get benefitted from. This is where data-driven marketing would help and enabling customer loyalty programs through the right data set will create personalized experiences for consumers. These experiences can be built not only during in-store shopping but even when a consumer is shopping online – either at a common marketplace or with a brand’s exclusive ecommerce store.

2. Retail

Noteworthy sales by retail brands on Thanksgiving, Black Friday, Cyber Monday definitely set the stage for 2021 holiday season. A big reason could be the pent-up demand from consumers that is triggering this surge in the retail sector. However, what is most critical at this point for retail brands is to connect with consumer across store, digital and even social channels. While digitization has clearly lifted a bigger piece from the pie, consumers are hunting for shopping options through social apps like Facebook or other informational social channel that curates personalized recommendations. But this doesn’t deter consumers to walk into the stores and experience the holiday season. The excitement around this yearly tradition will still have 46% consumers visiting retail stores for shopping.

3. Travel & Hospitality

An industry largely affected by the COVID-19 pandemic, travel industry is welcoming consumers with arms wide open this holiday season. While business travel is yet to gain momentum, leisure travel has definitely seen the light of the day. 37% of people are planning to travel this holiday season. And if there is one strategy that helped travel industry to bounce back – it is re-strategizing their loyalty programs to stay connected with the consumers. The frequent-flyer loyalty programs offered by many airlines need to be restructured in the new setup we now live in until business travel picks up. By creating a loyalty ecosystem comprising airline and hotel brands, the partner loyalty program is one of the most touted loyalty strategies opted by the travel industry. Extending points expiration to enabling easier ways to earn points are few of the tactics adopted by the brands. Tips and tricks like offering VIP treatment, opening exclusive access to an event for loyalty members could be few of the drivers from an emotional loyalty program that might just do the trick during this time.

5 Holiday Season Marketing Strategies You Will Implement Right Away

1.  Convenience is the buzzword


With social distancing becoming the norm, living in a slightly restricted world today comes with its own challenges. It is at this time that offering convenience to customers is of paramount importance. By facilitating quick checkouts, preferential shopping time slots, adopting digital payment modes and offering a buy online and pickup later option – as a brand you are not only transacting with the customer but thinking about some of the apprehensions shoppers would have in today’s contactless world.

2. Refurbishing the in-store experience


There is and can never be complete domination of online shopping. The partly forgotten in-store experience over the last 1.5 years is all set to lure consumers with stores revamping their look as per the holiday season themes. In-store gift ideas like Christmas Raffle prize, free refreshments and a special corner for your kids to splurge in while you shop stress-free. All these could increase your overall store footfall and might as well ensure repeat purchase if you tie it up with the timely customer loyalty program.

3. Riding high with robust customer loyalty programs

Emotional quotient of people is quite high during the holiday season. A reason why, building emotional loyalty programs would give your brand the edge in comparison to your competitors. Loyalty programs has been the biggest indicator for brands to personalize messages and direct to consumers at different touch points in their shopping journey to stay connected with the brand. And discounts is not the only tool we are talking about here! Building unique experiences like offering gift cards during the holiday season or creating a full-fledged holiday loyalty campaign could woo customers to not only redeem points but also earn more points that could be utilized even after the holiday season. Gamification elements like creating a holiday season wish list leaderboard in your brand’s loyalty app could also result in higher customer engagement.

4. Elevating ecommerce shopping with in-store experience at home


We cannot leave this blog and not talk about the ecommerce evolution that has taken place during the COVID-19 pandemic. Uploading high quality pictures from different angles, informative and DIY videos would not only attract more views but help consumers understand the product better. This could be achieved by introducing chatbots that could serve as the store shopping assistant, an option to pick up the delivery from the store or offering educational content that could help consumer to make the right choice and reduce the final decision-making timeline.

5. Launching a New Year campaign in January 2022

As a brand, marketers can start the New Year on a high note by creating a customer-centric marketing campaign right at the beginning of the year. People who spend more during the holiday season often hunt for economically-priced yet value-driven goods during the first quarter of the year. Introduce new products and services, communicate with the right messaging on the right channel and stick to personalization while marketing your brand.

Tis the season of giveaways, gifting and rewards. Let your brand make the most of this holiday season with a thought through marketing campaign planning and an agile loyalty marketing strategy. For more details on how to get started, connect with our expert team and set this rolling. Happy holidays everyone!

Top 5 Fuel Retail Trends That Drove 2021 And Beyond

Top 5 Fuel Retail Trends That Drove 2021 And Beyond

Globally, the evolution in the Fuel, Oil and Gas industry has begun. Marketers have adapted their brand and business strategies to the shifting fuel retail paradigm between drivers and forecourts.

Accelerating this change, the non-fuel retail business took the lead this year exhibiting potential in QSR, drive-through services, additional car care services, last-mile delivery, etc. Of course, the fuel sales dropped by 50 percent during 2020 but the fact that it recovered its ground soon was a welcoming sign for many fuel brands. While the tumultuous journey was a lesson learnt the hard way, new explorations were simultaneously made in the fuel retail business. As we bid goodbye to this year, let’s review the year that has been for the fuel retail sector and what charged the marketers to stay ahead in their game. Here are 5 fuel retail trends that soared high in 2021 and are all set to continue from here.

Trend #1: Accelerating forecourt experiences


By far, this is the biggest bet that many fuel brands are placing on their business and marketing strategies. It has been established post COVID-19 pandemic that forecourts are no longer seen as fuel-only stations. Fuel retailers must view them as convenience stores that sell fuel and other fuel related products. In fact, to avoid crowding supermarkets in malls during 2020, many people moved to stand-alone convenience stores like the ones at fuel stations to shop for their daily needs to practice social distancing.

Fuel retailers may try to outshine competitors by fabricating a good ambience at pumps with comfortable seating, parking lots, electric vehicle charging points, convenience stores offering a gamut of products, to modernize customer engagement. A recent study by KPMG on forecourts experience tells, ‘The total market size of the forecourts is predicted to reach $274 billion by 2029.’ It could thus be stated that fuel stations that would not include Non Fuel Retail goods might have to face a stiff competition in the market.

Trend #2: Shifting gears to alternative fuels


Government implications and early adopters had already set the stage for renewed mobility options. In one of our fuel retail blogs, we had also spoken about how aggressively companies and economies need to meet the targets set by the Paris Agreement. Stringent reforms on emissions, preference to alternative fuels like that support a sustainable environment has enabled a new era of electronic mobility across the globe. Even the advent of newer fuels (like LPG, Bio and Hydrocarbon Fuels) in some countries was a table turner for this sector that proved its valiance post pandemic. In fact the overall spike in the sales of battery-operated vehicles and plug-in hybrid electric vehicles in 2020 is a testament to the forthcoming change. Its full adoption in comparison to the conventional mode of transport, however, is still a questionable argument. Many global fuel brands are also providing premium fuel with additives to reduce emissions and increase engine efficiency, in order to move towards customization of offerings and personalization of experience, and yet targeting fuel loyalty.

Trend #3: End-to-end digitization route

Data in silos has done no good to any brand. Fuel retail is not an exception too. A single step in the digitized direction can help brands open new avenues. Moving from a card-based loyalty program to a digital mobile app is not only a convenient feature for a customer but it is also a credible piece of customer information from a brand’s perspective. The ease of digitized app is far superior than carrying a physical card. Eventually, digitization would also create a shift in consumer’s perception about mobility. The growing popularity of MaaS or Mobility-as-a-Service in a few nations is also driving the world with renewed mobility options. This broader ecosystem includes ride sharing, ride hailing, a one way or a two way vehicle sharing options allowing users to move from asset ownership to shared mobility services. Digitization could be a big enabler in helping consumers and retailers to adapt to this new trend.

Trend #4: Enabling a convenience-first model with gusto


Burgeoning consumer trends that have come forth owing to the changing lifestyles and technological advancements post pandemic are here to stay. This has enabled fuel brands to think from a convenience standpoint. The all-in-one fuel app allows consumers to not just transact and keep a tab on their vehicle’s fuel intake but has become a mandate in a contact-less world with digital payments taking the front seat. Enabling a digitized customer journey, tracking customer data to study customer needs and behavior is a pedestal to design targeted CRM campaigns. This also helps marketers and retailers focus on more up-sell and cross sell opportunities through the App. Another convenience-centric trend is the pick-up and delivery option that enables people to save on time while they fuel up their vehicle tank. This ecommerce enabled functionality is touted to come in a big way focusing on stations located at the nearest points. In the Middle East for instance, a popular fuel brand offers fuel delivery option. This could be a major game-changer especially for consumers caught up in the SOS situation.

Fuel retailers are moving into convenience and alternative retail offerings to diversify their revenue streams. Collecting the right data set and drawing meaningful insights about consumer buying preferences and behavior from it, will help upgrade the customer engagement. This data can be utilized to drive constant improvement of the loyalty program and its offerings like more customized encounters, products, services, and benefits to the consumers. Customer needs are prioritized

Trend #5: Customer loyalty takes the center stage


Although each fuel retailer could implement similar strategies, creating differentiation in this industry is a challenge. Hence fuel retailers are considering other value-added services like opting for consumer-centric loyalty programs to create a quantifiable difference. Value proposition is at the core to encourage loyalty and build brand affinity, especially in an undifferentiated product category like this. A highly motivating value-proposition will enhance consumer involvement. The value-proposition for the loyalty program should be distinctive and easy to understand for the customers. This can be enhanced by providing incentives to consumers such as personalized rewards, providing additional loyalty points which could be easily redeemed, occasional rewards like birthday wishes to make customers feel special, periodic and seasonal offers, etc. Geo-location-based rewards can be provided at nearest petrol pumps so that customers stay loyal to a fuel brand.

A well-crafted fuel loyalty program could thus prove to be a strong tool to increase brand affinity, engage customers, be on top of the mind recall and reduce customer churn. Interacting with customers at multiple touch points increases hyper-personalization and builds customer engagement. A portion of your fuel retail loyalty program configuration should be a communication strategy that guides out when and how you will communicate with your consumers. Our team of fuel retail loyalty experts have closely reviewed the market trends to create loyalty marketing strategies for some of the leading global fuel brands. Get in touch with them and drive your fuel brand sales and revenue.

Conglomerate Loyalty In India: A Beginner’s Guide

Conglomerate Loyalty In India: A Beginner’s Guide

47% Indian consumers remain loyal to a favorite brand even after a bad experience, reveals a study by KPMG.

Indeed, India hails with sheer loyalists – an untapped and remarkable consumer market for brands to build a strong ground for loyalty. Marketers! Read through this blog to know how you can surge your brand revenue through loyalty. We all know that COVID-19 pandemic seeded drifting consumer preferences, newer brands on the shelves and non-availability of branded products in India in 2020. In our recent report on Indian retail industry, a thorough analysis of all the post-pandemic trends raging in this industry is highlighted. The report also narrowed down how loyalty-first environment was cultivated amongst many individual brands and conglomerates as a long-term marketing strategy to retain consumer loyalty.


As much as loyalty is relevant for individual brands, it proves to be more beneficial for the multiple brands that are run under one common group. Hailing from the land of big conglomerates like BIRLAs and Reliance; Indian conglomerates must catapult this segment by tapping onto each other’s’ synergies. For instance, when travel and hotel or automotive and finance partner together, they can create one single loyalty program that would benefit both the parties during the consumer purchase lifecycle. The partnership amongst similar category brands deliver a memorable and fulfilling experience through targeted promotional offers.

Conglomerate Loyalty in India: The Big Picture

In a split second search on Google with the keyword ‘conglomerate loyalty India’ a rather inadequate result page is published. The list of articles are all dated B.C (Before COVID-19) and thus do not address the term that deserves more attention by conglomerates post-pandemic. This glaring fact further builds on the unexplored potential of loyalty in India. As we pondered, we inquired this with our sales maverick Rahul Ramachandran to offer a closer look on the conglomerate loyalty scene in India.


Industry experts have observed that conglomerate loyalty offers many benefits for its program members. However, at the same time it can be quite intricate to implement as the conglomerate has to look at each participating brand’ customer engagement strategy and accordingly enroll them for the loyalty program. It is thus crucial for brands to choose and partner with complementary brands to stay aligned in the longer run. Here is a checklist that brands must keep handy when opting for a conglomerate partnership loyalty:

  • Choose the brands first that would be participating in the loyalty program
  • Weigh and measure the mechanics of the participating brands in your loyalty program – get an expenses breakdown from each of them.
  • Organizations need to choose between a single technology partner or multiple technology partner collaboration to enable this transformative journey.
  • Identify and set aside time to market the loyalty program. This entails how many brands should be taken live in phase one and beyond, if any. It is better to create a go-live plan with the right brand mix timely.

5 Reasons Why Conglomerate Loyalty Is a Win-Win for All Brands


1. Improves overall footfall

More shopping options will eventually lead to garnering better store footfall. When different brands come together under one loyalty program, customers have more reasons to walk-in and shop. This approach definitely creates a more fulfilling and memorable shopping experience for customers as they have the option to earn and redeem points under one roof.

2. One enrollment, many benefits

Customers are often drained by enrolling through different loyalty programs during their shopping spree. As much as Indians love discounts, they also refrain sharing personal information to every individual brand. Hence, when similar brands team together under one loyalty program, it offers customers the shopping opportunity to avail more benefits from the loyalty program.  For instance, Shoppers Stop offers their

3. More rewarding offers

It is always more rewarding to avail promotional offers that are more in number and rewarding as well. A classic case is that of booking a flight ticket and getting a promotional discount percentage on hotel booking using a common loyalty program. This partnership not only connects with customers at different touch points in their purchase journey but also advances further by understanding customer needs.

4. Seamless shopping journey

Customers earning and redeeming points with different brands also creates a unified profile view. The purchase history offers a peek into the customer needs that enables different brands to target promotional offers accordingly. Since customers can be easily identified through AI and other data-led technologies, the shopping journey becomes seamless and more rewarding.

5. Reduces acquisition cost

One of the most crucial benefits of venturing into a conglomerate loyalty program is the fact that it reduces the overall marketing acquisition cost. The nudging to cross-brand promotion will be lesser with one common loyalty program.

6. Plays the gamification card well

Teaming up different brands together allows myriad options to run gamified loyalty campaigns via social media channels, email and text messages, customer reviews, etc. This also assures more rewards leading to a better customer engagement strategy.

Conglomerate Loyalty in India: The Road Ahead

Shopping malls, plazas, outlet centers, airports, hypermarkets – conglomerate loyalty offers potential benefits to all the brands nestled under one group. Looking at the bigger picture, the ease of shopping experience it offers, the number of preferences the members experience in conglomerate loyalty is unimaginable. In India, The Future Group offers the option of Future Pay Wallet that allows seamless shopping experience across stores like Big Bazaar, FBB, Central, Brand Factory, Ezone, Heritage Fresh and Easyday. Another ambitious conglomerate loyalty program is India’s leading digital conglomerate who will be offering a single loyalty solution for the popular brands in its consumer portfolio. This one of its kind digital-first loyalty program will offer reward programs and benefits to all its existing and new customers. If you would like to enroll for a similar loyalty strategy, connect with our expert team to know more about conglomerate loyalty program strategy