Indian loyalty scheme enrols 67m in one year
In India, the loyalty management firm Loylty Rewardz has reported that its FreedomRewardz loyalty programme - designed to cater to State Bank Group customers - has reached membership of some 67 million, and is now growing by approximately 1.3 million members every month.
This impressive feat was achieved within nine months of the programme's launch in April 2009, with the aim of rewarding the bank's customers every time they use a State Bank debit card to make payments.
For every Rs.100 spent using a State Bank debit card at a retail point of sale, members earn 2.5 FreedomPoints. But, among the programme's own network of merchant partners, members earn a high number of points (depending on the partner).
Members can redeem their FreedomPoints for a choice of over 2 million products, including merchandise, movie tickets, bus and air tickets, branded discount vouchers, electronic items, family & fashion products, and so on.
Since the programme launched, it has already issued more than 780 million FreedomPoints, with transactions tied to the programme reaching some 100,000 each day. At this early stage of the programme's evolution, transaction numbers are reported to be growing at a rate of more than 100% year-on-year.
According to Mr Bijaei Jayaraj, CEO for Loylty Rewardz, "In this period of transition and increased competition for India, the ability to retain existing customers is a bigger challenge than acquiring new customers. Corporate India is beginning to realise that rewarding loyalty is directly linked to reducing churn and, while customer loyalty programmes in India are at a very early stage, they are likely to grow dramatically over the next two to three years."
The FreedomRewardz programme has partnered with over 35 retail brands, all of which aim to increase their customer base by targeting the State Bank Group's debit card customers. In return, these partners offer higher points earning rates and benefits to State Bank's customers, allowing them to accumulate FreedomPoints more quickly.
Brand partners that have already joined FreedomRewardz include The MobileStore, Provogue, Fame Cinemas, Adidas, Cambridge, Ferns N Petals, VLCC, Watches & More, Durian, Book Cafe, Sangini, IFB, EasyCabs, Orra, Gini & Jony, Libas, Cottons By Century, Cantabil, Cotton County, Himalaya, Capital Electronics, Indian Terrain, Cambay Hotels, Dayal Opticals, Nirula's, Richfeel, Rosebys, Primus Retail, Weekenders, John Player, Dr. Batras, UniverCell TeleCommunication, Wave cinemas, Career Launcher, and Kalamandir, among others.
Founded in 2006 the programme's operator, Loylty Rewardz Mgmt Pvt Ltd, is backed by investors including Argonaut Private Equity and Ventureast venture capital.
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