Touching upon loyalty and sales

Along with their swift expansion plans, Indian Terrain was also seeking to build a stronger relationship with the customers by delighting them with experiential rewards. As a result, the brand introduced Capillary's flagship product "!nTouch" providing next generation customer engagement solutions across all Indian Terrain stores in 2009.

 

STRENGTHENING CUSTOMER CONNECTIVITY

Capillary, an end to end technology solutions provider, took onus to design and implement a truly unique brand new loyalty programme customised to the Indian Terrain customer profile; an added requisite put forth by Capillary itself was training the store staff to efficiently execute in order to obtain faster results along with complete technical support and services with regard to its flagship product - !nTouch.

In mid 2009, Indian Terrain launched 'Members Only', an exclusive loyalty programme for its patrons. Within months, 'Members Only' received a tremendous response, acquiring numerous registrations. This resulted in increased sales through higher frequency of visits, latency and customer's wallet share.

To keep the engagement levels high, Capillary included key parameters like relevant offers on every purchase, bonus points, lapsation of points for inactive accounts and gifts for special occasions like birthdays and anniversaries. A business platform was developed to follow the Key Performance Indicators set by the client, which include increasing customer database, loyalty conversion and redemptions and recurring customer visits.

 

LOYALTY EFFECT

LARGE PROFITABLE CUSTOMERS’ BASE

Indian Terrain ran the ‘Members Only’ programme as a pilot at 20 of its stores after six months.

 

HIGH LOYALTY SALES

After implementation of the 'Members Only' programme, there was a tremendous rise in the sales across all Indian Terrain stores. Between January 2010 and January 2011, the loyalty programme generated additional sales worth more than 400% of the investment in the loyalty programme.

 

DIAL M FOR SHOPPING!

Along with running an effective loyalty programme, !nTouch has also helped the brand create successful marketing campaigns with more impact than before. Today, ‘Members Only’ is running across all 60 exclusive brandoutlets of Indian Terrain and the store windows sport the message – Your Mobile Number is All You Need When Shopping With Us.

 

OUTSTANDING REDEMPTIONS

Indian Terrain saw an incredible response to the loyalty programme from its customers. Between January 2010 and January 2011, of the total redeemable points, 13.9% points were redeemed within the same period, an admirable feat for any loyalty programme.

Along with redemption rate, the Members Only also increased the repeat visits to a phenomenal level. According to the customer data, although 47% of the first redemptions took place after six months, 23% of the second redemption for the same customer pool took place within the next two months, thus improving the latency and frequency of purchase. The data also proves that 75% of the loyalty program members visited the store more than four times during the said period. 

 

Aneesh Reddy is Co-founder & CEOm Capillary Technologies

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