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.