Beruflich Dokumente
Kultur Dokumente
2015 – 2018
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SELF DECLARATION OF STUDENT
I hereby declare that the project work done by me titled “Customer Loyalty
Program” under the guidance of CFA. JYOTIKA ANAND, lecturer St. Andrews
Institute of Technology & Management, Gurgoan, is an authentic record of my
own work.
This project was undertaken as a part of the major project as per the
curriculum of Maharishi Dayanand University, Rohtak for the partial fulfillment of
BBA from St. Andrews Institute Of Technology & Management, Gurgoan, I have
not submitted the matter embodied here in this project for the award of any other
degree or diploma.
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CERTIFICATE FROM THE INSTITUTE GUIDE
This is to certify that the summer project titled “Customer Loyalty Program” is
an academic work done by “Kiran Negi” submitted in the partial fulfillment of the
requirement for the award of the degree of Bachelor of Business Administration at
St. Andrew Institute of Technology and Management, GURGOAN, under my
guidance & direction.
To the best of my knowledge and belief the data and information presented by her
in the project has not been submitted earlier.
Signature:
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ACKNOWLEDGEMENT
I would also like to place on record my gratitude to all the people whose
continuous cooperation and support have gone a long way to the enrichment of this
project.
Last but not the least I would also like to thank my friends and relatives without
whose support completion of this project would have been impossible.
Signature:
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ABSTRACT
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TABLE OF CONTENT
1 DECLERATION 2
2 CERTIFICATE 3
3 ACKNOWLEDGEMENT 4
4 ABSTRACT 5
5 CAMPANY PROFILE 7
6 CHAPTER 1: INTRODUCTION 13
7 POINTS PROGRAMS 14
8 SPEND PROGRAMS 16
9 TIERED PROGRAMS 17
10 PAID PROGRAMS 19
11 PUNCH PROGRAMS 20
10 TIPS FOR LAUNCHING A REWARD
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PROGRAM
13 WHY ONLINE REWARDS PROGRAMS FAIL 25
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Company Profile
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OUR VISION and POLICY
Customer service is the prime vision of the company. We are not small for big
customers and are not big for small customers.
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STRANS LOGISTICS, services are backed by a team of immensely talented
professionals and extensive industry experience, we offer personalized and
reliable services to our clients.
The professionals interact with the clients to discuss the execution plan of the
project and ensure that the services conform to the global standards. Over the
years, we have been successful in operating distribution centers efficiently and cost
effectively with maximum flexibility.
Reliable, safe, competitive sea-freight solutions for SEA Exports and SEA Imports
FCL (Full Container Load) to and from all international sea ports.
LCL (Less than Container Load)
Standard General Container, Open Top, Flat-Rack, Tanker, Reefer containers
Break-Bulk Cargo Movement by sea.
Roll-On-Roll-Off
Out-of-Gauge cargo
Hazardous cargo shipment
World-Wide Import/Exports including Cross-Trade shipments.
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Custom Clearance Services
FTL (Full Truck Load) by Rail or Road LTL (Less than Truck Load / Part
Truck Load) by Rail or Road
General Container movement by Rail or Road
Flat Track movement by Rail or Road
Refrigerated Goods movement by Rail or Road
Specialized Cargo / Project movement by Rail or Road
General Warehouse and Custom Bonded Warehouse Services
Local Distribution and Door Delivery Services
Domestic Courier and International Courier Services
Reliable, safe, competitive Inland Road Transport and Rail solutions
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One of the world’s growing Logistics Company, provides industry logistics
and supply chain solutions for large and medium-size national and
multinational companies.
Its employees are dedicated to delivering effective and robust logistics and supply
chain solutions across a variety of sectors where STRANS applies its operational
expertise to provide best-in-class services across its integrated network.
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STRANS LOGISTICS policy is to respect and appreciate the customer’s
requirement. We endeavor to provide our customers with the highest quality and
cost-effective services through constant innovations in the field, enabling us to
accomplish successful, long run business relationships.
COMPANY CULTURE
Entrepreneurship
They believe in providing people opportunities to do all that they can and be what
they want to be.
Respect for all, being respectful towards all whom they meet during our day-to-day
professional interactions.
Their journey would not have been possible without an enduring, bordering on
fanatical focus on performance. This is what they also seek in our employees – a
keen focus on outcomes through performance excellence.
Teamwork
They value “the power of many” and look to harness collective synergies through
collaboration and teamwork.
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CHAPTER-1: INTRODUCTION
Customer loyalty programs are a way of rewarding your repeat customers and
encourage them to stay loyal (hence the name). A good loyalty program is not just
about giving away stuff to repeat customers, rather it’s a channel to strengthen
customer relationships.
If your value proposition aligns with your business and you keep your program
simple, you’ll generate more sales and increase brand loyalty.
There are some customer loyalty programs as -
1: Points Programs
2: Spend Programs
3: Tiered Programs
4: Paid Programs
5: Punch Programs
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POINTS PROGRAMS
Loyalty point programs let customers accumulate points that they can redeem for
rewards or free products/services. They’re so easy to set up that 73% of loyalty
programs are points based, making this the most popular type of loyalty program
by far.
Not all points are tied to money transactions – some may be earned from social
sharing, emails, or other actions customers take to drive traffic to your site. In fact,
your loyalty program shouldn’t be purely transaction-based. Get your best
customers to send you more business and reward them for helping you.
IHG keeps their rewards site user-friendly and provides plenty of ways for
members to earn and redeem points. Travel and hospitality companies have some
of the best loyalty programs around. Study them to improve yours.
Pros
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Easy to understand
Lots of loyalty program apps and software to choose from
Avoids price discounting
Cons
Thanks to the ease of use and customizability of points programs, they’re perfect
for most ecommerce business, regardless of size or target market.
SPEND PROGRAMS
In spend programs, customers get loyalty credit for the amount they spend at your
business. You can use similar discounts without an upfront email capture to keep
customers coming back, but you’d lose out on a lot of valuable information (and a
captive audience!). This kind of program is very easy to understand, create, and
maintain. They’re an effective way to cut your churn rate and increase transaction
amounts.
Although the page layout could be better, fawn & forest beautifully explains how
their program works. Design can make a major difference, however. Don’t waste
space like this on your explainer page. Make sure you’re optimized for mobile
AND computer use.
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THE SKINNY ON SPEND PROGRAMS
Spend programs are a great option for encouraging increased transaction values
and reducing high churn rate. The simplicity makes it easier to get customers to
sign up.
Pros
Tangible value
Intuitive rewards system
Encourage repeat business
Increase transaction amounts
Easy to set up
Easy to maintain
Cons
May not let you gather as much data as other types of loyalty programs
Can decrease perceived value of products/services
Higher cost to your business
Spend programs are a great option for retailers in fast fashion or other, similar
industries that rely on high numbers of transactions and retail products with high
markup.
TIERED PROGRAMS
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customers are offered gifts, free products/services, privileges, or exclusive
products.
GILT Insider
To introduce their Insider program, the GILT Group posted a press release. Smart
move, and a great way to let existing customers know about the program,
especially if you link to it on your homepage.
Sephora
Sephora clearly illustrates the benefits of each tier in a fun and easy to understand
way. Scroll down the page for each tier, and you’re presented with beautifully
illustrated reasons to signup – the most attractive level is, obviously, the VIB
Rouge.
Best Buy
Best Buy provides an easy to understand chart for potential rewards members,
complete with details on how to qualify for each level.
Bulletproof Coffee
Bulletproof coffee makes their program tiers easy to understand, although the point
quantities might be a big daunting for some customers.
Need to cut your churn rate, save on your loyalty program expenses, and target
specific segments or actions? Spend loyalty programs might be the right solution –
especially if you’re in the luxury market.
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Pros
Cons
Unlikely to draw new site visitors into joining on the first visit
Not universally appealing (great for targeted campaigns, but not as a general,
stand-alone strategy)
More complicated to set up
Tiered programs are great choices for e-commerce service providers, luxury
retailers, and companies in the travel and hospitality industry.
PAID PROGRAMS
Amazon Prime
To overcome the barrier to entry, Amazon Prime offers a 30-day free trial for new
members. They’ve also found ingenious ways to market the program as part of the
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checkout process, on pop-ups, and even incorporating “try prime” into the Amazon
logo on every page.
Newegg Premier
Pros
Cons
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Paid programs are perfect for larger retailers, and also make a smart pick for luxury
product and service sites. Information businesses can also make good use of this
loyalty program model.
PUNCH PROGRAMS
One of the simplest and oldest loyalty program designs, punch programs are
extremely popular in brick and mortar businesses, but their adoption in e-
commerce isn’t as prevalent. The idea behind punch cards is that customers are
rewarded for purchasing a particular product or service with “punches.” One punch
is given per purchase. After a set number of punches are collected, they receive a
product or service of equal or lesser value free of charge.
Hotels.com Rewards
Simplicity in action. This is easily one of the best punch card rewards programs in
e-commerce, with a beautiful explainer page.
Another beautifully simple program, but one problem – if L’Oreal weren’t such a
household name, that sign-up form would send customers running. It’s asking for
way too much.
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Pros
Easy to track online (potential advantage over brick and mortar punchcards)
Familiar program model for customers
Can be highly targeted or appeal to mass customer base
Low implementation cost
Cons
A great choice for new loyalty programs, but tracking data and preventing fraud
can be an issue. Ideal for experience-based industries like travel, although they
work well with consumer goods that are high value and high consumption, too.
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10 TIPS FOR LAUNCHING A REWARD PROGRAM
1. Keep it simple
You already have loyal customers. They like you enough to join your mailing list.
Use that to your advantage and make them feel special at the same time by offering
them a chance to be the first members of your loyalty program. You can iron out
the kinks and make sure your program is perfect with the help of an audience you
know will be receptive.
Ask only for the information you really need. Loyalty programs can be great lead
capture incentives, but no one wants to share their life story with an ecommerce
retailer.
An email capture, and maybe your customer’s name and birthday (if you offer
something special to help them celebrate, like a discount), are all you really need at
this point.
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4. Make earning rules simple
If no one understands how to earn in your program, they may ignore it. The
simpler the rules are, the more likely your customers are to actively try to earn.
Once again, simplicity is huge. If customers have to jump through hoops to spend,
they may feel that your loyalty program isn’t such a great deal, after all. Even if
they loved the simplicity of earning, and your company.
Noticing a theme here? Don’t overwhelm your program members. Launch the
program in easy-to-understand chunks so that each part of it feels like a natural
progression from the previous step.
Keep your rewards transparent, worthwhile for your customer, and easy to use or
acquire.
You started your business with a solid foundation – a business plan that helped you
see the viability of your vision and a clear path to your goals. The loyalty program
deserves equal attention. It’s the path to keeping your customers, and your bottom
line profitable.
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9. Use automation
You focused on simplicity for the customer. Don’t forget simplicity for you, too.
Automation can reduce the workload on your end, while helping your customers to
feel appreciated and in touch with your business. That personal touch is important.
Speaking of which…
From the rewards you offer to the way your program feels to the customer, make it
about them. If you’re only thinking about earning on your end, you’ll miss the
mark and you might destroy your credibility with the customer in the process.
People crave a personal connection, even (or perhaps more so) in e-commerce.
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WHY ONLINE REWARDS PROGRAMS FAIL
Reward and loyalty programs sound like the key to instant success so far, but most
fail spectacularly. According to Cap Gemini, 89% of social media sentiment
regarding loyalty programs was negative.
Sure, people are more likely to talk about things they don’t like, but that’s a
startlingly high statistic. That gives you a few places to strengthen your loyalty
program before you launch it, but there are more steps you can take to make sure
it’s a hit, too.
How much do you like colonoscopies? Yeah, not many people could call them
enjoyable. Make sure your sign-up form doesn’t feel like one to your customers.
Asking for too much information is something that 38% of people feel loyalty
programs do, according to Bond Brand Loyalty. Coupled with the lack of
personalization and dynamic loyalty program content that plagues many loyalty
programs, you’ve got a recipe for failure.
You’ve invested a lot of time and effort into creating a worthwhile loyalty
program, but let’s be honest. If no one knows about it, it might as well not exist.
You need to promote your loyalty program to really see any revenue from it. You
can do that via email, social media, or your website. The best strategy, however, is
to combine the three.
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If no one knows about your rewards program, it’s not going to work. Promote
heavily and intelligently to your own email list first, and then via social media and
on your website.
Earlier in this guide, I mentioned that you should start with your own mailing list.
Don’t forget to do it. At the same time, actively work to grow your mailing list and
encourage new members to join your loyalty program, too.
Once you have the kinks worked out and are confident that your program will be a
hit, start advertising it on social media. Focus on platforms that your demographic
gravitates towards (for example, Pinterest tends to be dominated by women, while
Reddit is predominantly a men’s platform).
On your website, you’ve got a relatively captive audience. The people on your site
are already interested in your company. Don’t get lazy, though. Offer an opt-in
freebie, discount, extra points, or some other incentive to entice site visitors to join
your membership program.
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CUSTOMER RELATIONSHIP METRICS
Track vital loyalty metrics to judge how your loyalty program is performing and
how much your customers love your company. Stats like churn, response, and
retention rate can keep you on the right track to a strong customer relationship.
Keeping track of your relationship with your customers isn’t an option. It’s a
requirement. Track your customer relationship’s pulse with these metrics:
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Keep in mind that not every loyalty program app works for every platform. Before
you get your heart set on one, check to make sure it’s compatible with your e-
commerce site.
Loyalty programs improve customer retention and provide incentives for your
customers to buy. ...Loyalty programs can help do this by increasing that number
of repeat customers and also increasing the amount of repeat purchases.
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CONCLUSION
The research is descriptive and explanatory about variable and builds a broad
picture of the relationship marketing and online marketing. Data were
analyzed using different statistical methods.
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