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Choudhury kicked off the discussion with the link between data and behavioural. He said, \u201cWe all have data. If you do not do anything with it, someone else will. Today, the loyalty space is more about \u2018interaction\u2019 and no longer just about \u2018transaction\u2019.\u201d<\/p>\n
\u201c60 per cent of loyalty programs are now based on interaction \u2013 i.e. these programs are driven by analytic engines which can profile behavior. He went on to cite Google as a cease in point – where the click pattern on a page (or the swipe pattern in the case of touch devices) are used to customize ad-feeds. An extension of this is \u201cGoogle Now\u201d which uses predictive analytics to customize ads and offer-feeds. \u00a0\u2013 Vikas Choudhary<\/em><\/strong><\/p>\n<\/div>\n The panelists unanimously agreed that for each retailer the concept of \u2018loyalty\u2019 differs. Iyer pointed out the case of fashion retailers where \u2018price\u2019 is not a driver for the customers who shop at a fashion store like Lifestyle. According to him, customers expect more of\u00a0 a personal touch in form of being informed about fashion \/ trends in vogue and whether or not it is apt for him\u00a0 \/ her.\u00a0 \u201cFor us loyalty means having a meaningful engagement with our customers. It is a platform we use for communicating directly with our customers. Points are just like sweeteners \u2013 good to have, but they are not the primary purpose of the meal.\u201d \u2013 he said.<\/p>\n Satam spoke about the Jet Airways experience \u2013 where they have created a broader loyalty program which offering benefits, rewards and discounts across product categories.<\/p>\n \u201cWe understand that our customers don\u2019t fly 24 x 7. So, we\u2019ve evolved our frequent flyer program to allow the customer to use the privileges even when he is not flying with us. It is no longer a travel centric loyalty program.\u201d \u2013 Kaushal Satnam<\/em><\/strong><\/p>\n<\/div>\n Mohapatra focused on why Future Group opted for outsourcing their loyalty program rather than having one in-house. According to him this offered them better data mining\u00a0 capabilities, and provided their customers access to a \u201chorizontal\u201d aggregated progam managed by Payback. \u201cWe are in the business of retail \u2013 it\u2019s better if we get a specialist to design and manage our loyalty program\u201d.<\/p>\n Gupta pointed out that, as a banker, acquiring a customer was an expensive proposition but keeping him engaged was a bigger challenge.\u00a0 \u201cThat is where offering loyalty programs come into play\u201d.<\/p>\n For a customer, banking transactions are not a \u201cfun\u201d activity \u2013 unlike shopping.\u00a0 So there is an element of surprised pleasure when our customers are able to earn\u00a0 and burn points from banking.\u00a0 For us, the key is giving them a basket of option to choose from\u201d. \u00a0\u2013 Manisha Lath Gupta.\u00a0<\/em><\/strong><\/p>\n<\/div>\n Bhatia spoke about the flagship First Citizen Club (FCC) program from Shoppers Stop \u2013 one of the longest running and most valuable programs in Indian retail today.\u00a0 FCC accounts for about 75% of the total topline of Shoppers\u2019 Stop.<\/p>\n The FCC program has helped Shoppers design targeted marketing and promotional programs, \u201cThrough data mining we get to know details of our customers and it helps us entice them to plan their next purchase. For e.g. we have observed that if someone buys a formal suit from us, he is likely to return to the store to buy a shirt, a belt and accessories to complement the suit. Likewise, we have observed that in South India, half sleeve shirts work better than full sleeve shirts.\u201d \u2013 he said. Shoppers has been able to use these insights to design specific direct mailer campaigns which have higher than normal conversion rates because of their targeted relevance.<\/p>\n The session ended on an unanimous note:\u00a0 All panelists felt that having a loyalty or reward program was now a \u201chygiene\u201d factor.<\/p>\n \u201cThe name of the game today is about being loyal to the customer and meeting his expectations from the retailer in terms of service and experience.\u201d<\/em><\/strong><\/p>\n<\/div>\n \u00a0<\/em><\/strong><\/p>\n