Documente Academic
Documente Profesional
Documente Cultură
ON
“COMPARITIVE ANALYSIS OF
LOYALTY PROGRAM”
FOR
BY
AMOD D. KANKEKAR
SUBMITTED TO
PGDBM
(2009-2011)
ACKOWLEDGEMENT
Acknowledging the debt is not easy to me as so many people. I will take this opportunity
in expressing the fact that this project report is the result of an unbelievable amount of
encouragement, cooperation, willing to help and moral support that I have received from
others.
It is beyond my literal and material means to express my heartfelt thanks to Dr. Kalim
Khan, Director of Rizvi Institute of Management for being the source of inspiration and
motivation to strive for excellence.
I express deep gratitude to Mr. Jungare, for giving me this golden opportunity to
undertake this project in their prestigious organization and providing a good environment
to work.
I am grateful to my project Guide Mr. Ajay Sakpal for their constant guidance,
encouragement and support to the completion of this project.
I am thankful to Prof. Cyrus Gonda – faculty Guide for enlightening me on this subject
with his valuable guidance from time to time in completing this project.
I would like to thank the entire Customer Care department, for the most valuable help and
support extended during the project work.
Finally, once again I would like to thank all without whom I would have not been able to
do this project.
Amod Kankekar
Sr. Topics Page No.
No.
Acknowledgement
Executive Summary
Company Profile
Tractor Industry
Introduction
I. Defining Loyalty
Appendices
Sources
Executive Summary
In his thought provoking book, The Loyalty Effect, author Frederick F. Reichheld writes
Loyalty programs are initiated by businesses with two main goals. The primary goal for
most loyalty programs is the acquisition of information relating to their customers'
spending habits, while the secondary goal is to actively cultivate loyalty amongst
customers to ensure they continue patronizing the business. While some companies do
reverse these priorities, the above hierarchy holds true for most.
Loyalty programs may offer benefits in a number of different ways. Many loyalty
programs offer a sustained discount (such as 10%) for a period of time - perhaps a year,
perhaps for the life of the business. Others offer a discount once certain criteria have been
met — for example, a 20% discount on a single purchase once a customer has spent $200
at the business. Still others offer points which may then be redeemed for products which
may or may not be directly related to the business.
Loyalty cards are the most common form of loyalty programs found throughout the world
today. In the United States, almost seventy-five percent of consumers own at least one
loyalty card, with over a third of all shoppers owning two or more. Major supermarket
chains, such as Safeway and Albertsons, nearly all have loyalty cards, also known as
rewards cards or benefit cards. These supermarket loyalty programs usually operate by
offering a discount on certain products, usually marked throughout the store, to those who
have a loyalty card. In exchange for this discount, customers are giving the store access to
itemized receipts of their buying habits in the store, allowing the business to better cater
to their needs and build product purchasing and discounting to help retain their most
profitable customers.
Loyalty programs have gained in popularity immensely in the past fifteen years, in no
small part due to the development of a culture of entitlement, in which consumers feel
that they deserve special treatment. Businesses have capitalized on this when designing
their loyalty programs, often offering benefits that cost little, but carry with them an
assumed prestige, such as access to faster-moving lines or special parking spaces.
So I did this analysis with the aim to find that –“Is there any impact on the customer’s
loyalty by these loyalty programs”. There were many other questions which were to be
answered such as ‘What are the factors affecting customer’s loyalty’, ‘is loyalty greater
than loyalty card or vice versa’, ‘and Does loyalty programs really works’ etc. I did a
analysis to find relationship between loyalty programs and customer loyalty.
The outcomes of the research showed that there are many factors of a loyalty program
which has an impact on customer loyalty. These factors include discounts, special offers,
preferential treatment etc. Since customer loyalty is highly dependent on each buyer’s
individual perception, hence these are some factors which have greater influence on
wider consumer base. Acceptability of a loyalty program by the consumer population has
been a major issue. Hence these factors if included in the loyalty program may increase
its degree of success.
It also depends on every sector and consumer buying structure as Mahindra Tractor
launched MahindraShree Loyalty card for their customers to retain them during after sale
service, but every sector has different loyalty system which I have compared on same
parameters to find out on how to design best loyalty card.
Ultimately, the success of loyalty programs depends on how well the business uses the
data it gathers to further refine its policies and loyalty programs. Many businesses find
little profit in the use of loyalty programs, while others, such as eBay, attribute much of
their financial success to a well-executed use of such programs.
COMPANY PROFILE
Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is
now a US $6.3 billion Indian multinational. It employs over 1,00,000 people across the
globe and enjoys a leadership position in utility vehicles, tractors and information
technology, with a significant and growing presence in financial services, tourism,
infrastructure development, trade and logistics. The Mahindra Group today is an
embodiment of global excellence and enjoys a strong corporate brand image.
1. Automotive Sector
8. Systech Sector
Mahindra is the only Indian company among the top tractor brands in the world and has
made an entry in the two-wheeler segment, which will see the company emerge as a full-
range player with a presence in almost every segment of the automobile industry.
The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading
global business and information technology services company, Satyam Computer
Services. The company is now known as Mahindra Satyam.
Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality Medal, the
only tractor company worldwide to be bestowed this honour. It also holds the distinction
of being the only tractor company worldwide to win the Deming Prize. The Mahindra
group’s Farm Equipment Sector (FES) is one of the top 10 industrial houses in India
which has a leading presence in several key sectors of the Indian Economy.
The motto of FES is to usher prosperity; for its customers, dealers, employees, society
and all other stakeholders.
Mahindra Group has commenced the Sustainability Reporting from 2008. Today, M&M
group is amongst the few Indian companies to have an A+ GRI certification. As per the
commitments given by the Group under GRI framework, significant reduction in usage of
electricity, water and solid waste is called for. To make FES employees aware on the
tenants of sustainability, various initiatives like easily accessible information on
sustainability, setting up of permanent sustainability corners in all FES plants, observing
of energy conservation month etc. are undertaken.
Overview:
The Mahindra Group's Farm Equipment Sector (FES) has a significant presence across
six continents. It is among the top three tractor brands in the world, with its own state-of-
the-art plants in India, USA, China and Australia, and a capacity to produce 1, 50,000
tractors a year. The group has a network of 800 dealers worldwide. In the domestic
business, the Farm Equipment Sector has unparalleled market leadership for the last 25
years. It is the largest producer of tractors in India. Mahindra Gujarat Tractor, acquired by
Mahindra & Mahindra from the Government of Gujarat in 1999, is the oldest running
tractor unit in the country. The Mahindra Group has a 60% stake and the balance 40% is
with the Government of Gujarat.
Mahindra Agribusiness integrates the food chain by providing quality inputs and farm
solutions to post-harvest management of high value farm produce. The Company's core
business is to provide supply chain services to organized retail, to both export and
domestic markets for fresh fruits and vegetables as well as to the food processing
industry. Mahindra Agribusiness is the first Indian corporate body to be awarded
EUREGAP certificate as ‘Primary Market Organization’ for Grapes.
Domestic Operations:
The Mahindra Group's Farm Equipment Sector is the largest producer of agricultural
tractors in India. In the domestic business, FES has had an unparalleled market leadership
for close to three decades now. With a 30% market share, the Bhoomiputra, Sarpanch and
Arjun brand of tractors makes the Group’s Farm Equipment Sector present in all major
segments in India. In F-08, M&M FES increased its dominance of the domestic market
with the acquisition of Punjab Tractors Ltd. (PTL). With this acquisition, M&M FES now
commands nearly 40% of the domestic market. It achieved a major milestone in F-08
when the cumulative sales of its tractors till date crossed the 13lakh mark.
The tractor industry in India is segmented by horsepower into the lower segment of 25
HP, mid-segment of 35 HP and higher segment of 45 HP and above. The company’s
Farm Equipment Sector has a presence in all these segments across all states, which
designs, develops, manufactures and markets tractors for Indian and Overseas markets, is
the largest producer of tractors in India. Mahindra & Mahindra consolidated its position
as the leader of the Indian tractor industry when it acquired 63.3% stake in Punjab
Tractors Ltd. (PTL), the owner of the leading Swaraj brand of tractors. Mahindra &
Mahindra also owns 20 % stake in Swaraj Automotives Limited and 0.06 % stake in
Swaraj Engines Limited. PTL is a strategic fit to the company, as it comes with its
strength of efficient design (strong R&D abilities) and the Brand Swaraj, which has a
reputation of being a reliable product. Benefits of this acquisition include advantages of
economies of scale, sourcing benefits and some amount of vendor rationalization.
It has the largest customer base of 13, 00,000 satisfied customers and the deepest
distribution reach. The Sector has four manufacturing facilities in India, located in
Mumbai and Nagpur in Maharashtra, Rudrapur in Uttaranchal and Jaipur in Rajasthan.
The Farm Equipment Sector is has always been a process driven organization with a
strong focus on its quality systems. The Arjun Ultra-1 has now been transformed into a
versatile product which has demonstrated superlative performance both on and off field.
Mahindra Shaan – a 25 HP multi-utility Tractor, which was launched the company in
2007, won the ‘Outstanding Innovation Award’ from ASABE (American Society for
Agricultural and Biology Engineers), USA. The Total Quality Management (TQM)
movement in the sector has brought accolades like the most coveted Deming Application
Prize, making it the first tractor company in the world to win recognition of this stature.
Mahindra Gujarat Tractor, acquired by Mahindra & Mahindra from the Government of
Gujarat in 1999, is the oldest running tractor unit in the country. The Mahindra Group has
a 60% stake and the balance 40% is with the Government of Gujarat.
Mahindra Agribusiness integrates the food chain by providing quality inputs and farm
solutions to post-harvest management of high value farm produce. The Company's core
business is to provide supply chain services to organised retail, to both export and
domestic markets for fresh fruits and vegetables as well as to the food processing
industry. Mahindra Agribusiness is the first Indian corporate body to be awarded
EUREGAP certificate as ‘Primary Market Organisation' for Grapes.
Mahindra Powerol is the brand name under which M&M engines are powering Diesel
Engines since its inception in 2001 and have already become the 1st choice of Telecom
majors like Reliance Infocomm, Airtel, Tata Tele, Hutch, Nokia, BSNL, MTNL etc to
support their communication network spread across the country. Recently Mahindra
Powerol has won Frost & Sullivan Voice of Customer award for the most preferred brand
in telecom cell-sites segment. Besides Telecom, Mahindra Powerol DG sets are attracting
customers from a diverse cross-section of industries like SBI, ICICI Bank, IOCL, Essar
Oil to name a few.
Mahindra USA, a wholly owned subsidiary of M&M, has grown by leaps and bounds and
has reinforced its position in the Compact and Utility segment. It works hand in hand
with a network of hundreds of leading tractor dealers throughout the country to provideits
American customers complete product support and quality After Sales Service.
Mahindra Australia, based in Brisbane, offers a complete range of 2 Wheel Drive and 4
Wheel Drive Compact and Utility models with an option to have performance matched
attachments like Loaders and Mowers.
Mahindra China Tractors, a joint venture between the Jiangling Motors Company Group
and Mahindra & Mahindra, started operations in July 2005. It will see Mahindra &
Mahindra further expanding the product range and developing more tractors for China as
well as other overseas markets.
MARKET SHARE
FES commands 41% of the domestic market share. (Mahindra brand: 29% and Swaraj
brand: 12%). FES has retained the Market Leadership for over 26 years.
COMPETITORS
John Deere
EICHER
New Holland
HMT
Escorts
ASSEMBLY PLANTS
Domestic (India)
2. Jaipur, Rajasthan
3. Mumbai, Maharashtra
4. Mohali, Punjab
5. Nagpur, Maharashtra
6. Rudrapur, Uttaranchal
Mahindra Australia
Brisbane, Australia
1. Calhoun, Georgia
2. Houston, Texas
China
Jiangling, China
Africa
1. Chad
2. Gambia
3. Mali
4. Nigeria
KANDIVLI PLANT
Kandivali plant was set up in 1965.
All the new tractor models (Compact, Cabin) are manufactured here, and the export
tractors are assembled in the Kandivali plant.
The plant also makes engines for diesel generators. The engines are supplied to the
contract manufacturers who then convert them into a DG set.
Kandivali is the main machining hub for FES, where all critical machining parts like
crank case, cylinder head, transmission case, crank shaft, camshaft, clutch housings and
all types of gears and shafts are made. It is the only plant
with heat treatment setup.
Tractor Assembly
Transmission Assembly
Engine Assembly
VTU Assembly
CV Assembly
Capacity
Management Structure
President FES
Anjou Choudhari
Customer
PMMS-
care- KH
Sanjeev Goyle
Ramaswamy
CDMM-
PDRDS- Ram
Subhash
Manrao
Mago
Powerol- Mahindra
Palniappan Shubhlabh-
Vikram Puri
MGTL-
Subhash
Modak
Tractors in India
As commercialization of agriculture grew in intensity in the mid to late 1800s the British
Raj and the local legislatures and provinces began investing in agricultural development
through support and establishment agricultural research farms and colleges and large
scale irrigation schemes yet the level of mechanization was low at the time of
independence in 1947. The socialist oriented five year plans of the 1950s and 60s
aggressively promoted rural mechanization via joint ventures and tie-ups between local
industrialists and international tractor manufacturers. Despite this aggressiveness the first
three decades after independence local production of 4-wheel tractors grew slowly. Yet,
by the late 1980s tractor production was nearly 140,000 units per year and by the late
1990s with production approaching 270,000 per year, India over-took the United States as
the world's largest producer of four-wheel tractors with over 16 national and 4 multi-
national corporations producing tractors today. Despite these impressive numbers FAO
statistics estimate that of total agricultural area in India, less than 50% is under
mechanized land preparation, indicating large opportunities still exist for agricultural
mechanization.
1945 to 1960
War surplus tractors and bulldozers were imported for land reclamation and cultivation in
mid 1940's. In 1947 central and state tractor organizations were set up to develop and
promote the supply and use of tractors in agriculture and up to 1960, the demand was met
entirely through imports. There were 8,500 tractors in use in 1951, 20,000 in 1955 and
37,000 by 1960.
1961 to 1970
Local production began in 1961 with five manufacturers producing a total of 880 units
per year. By 1965 this had increased to over 5000 units per year and the total in use had
risen to over 52,000. By 1970 annual production had exceeded 20,000 units with over
146,000 units working in the country.
1971 to 1980
Six new manufacturers were established during this period although three companies
(Kirloskar Tractors, Harsha Tractors and Pittie Tractors) did not survive. Escorts Ltd.
began local manufacture of Ford tractors in 1971 in collaboration with Ford, UK and total
production climbed steadily to 33,000 in 1975 reaching 71,000 by 1980. Credit facilities
for farmers continued to improve and the tractor market expanded rapidly with the total in
use passing the half million mark by 1980.
1981 to 1990
A further five manufacturers began production during this period but only one of these
survived in the increasingly competitive market place. Annual production exceeded
75,000 units by 1985 and reached 140,000 in 1990 when the total in use was about 1.2
million. Then India - a net importer up to the mid-seventies - became an exporter in the
1980s mainly to countries in Africa.
1991 to 1997
Since 1992, it has not been necessary to obtain an industrial license for tractor
manufacture in India. By 1997 annual production exceeded 255,000 units and the national
tractor population had passed the two million mark. India now emerged as one of the
world leaders in wheeled tractor production.
1997 to 1999
Five new manufacturers have started production since 1997. In 1998 Bajaj Tempo,
already well established in the motor industry, began tractor production in Pune. In April
of the same year New Holland Tractor (India) Ltd launched production of 70 hp tractors
with matching equipment. The company is making a $US 75 million initial investment in
a state of the art plant at Greater Noida in Uttar Pradesh state with an initial capacity of
35000 units per year. Larsen and Toubro have established a joint venture with John
Deere, USA for the manufacture of 35-65 hp tractors at a plant in Pune, Maharashtra and
Greeves Ltd will produce same tractors under similar arrangements with Same Deutz-
Fahr of Italy. Looking to South American export markets Mahindra and Mahindra are
also developing a joint venture with Case for tractors in the 60-200 hp range. Total annual
production was forecast to reach 300,000 during the following year.
1999 to Present
Facing market saturation in the traditional markets of the North West (Punjab, Haryana,
and eastern Uttar Pradesh) tractors sales began a slow and slight decline. By 2002 sales
went below 200,000. Manufacturers scrambled to push into eastern and southern India
markets in an attempt to reverse the decline, and began exploring the potential for
overseas markets. Sales remained in a slump, and added to the market saturation
problems also came increased problems of "prestige" loan defaults, where farmers who
were not financially able took tractors in moves to increase their families’ prestige. There
are also reported increased misuses of these loans for buying either lifestyle goods, or for
social functions. Government and private banks have both tightened their lending for this
sector adding to the industry and farmers woes. By 2004 a slight up tick in sales once
again due to stronger and national and to some extent international markets. But by 2006
sales once again were down to 216,000 and now in 2007-08 have slid further to just over
200,000.
Customer Care Department
Role:
Major Role:
Area
Area Office - 32
Office3
Dealerships - 625
M&M - HO
Franchisee - 170
Deal MASP - 95
er4
*as of F10
Area
Office2
Area
Deal
Office1
er3
Deal Deal
er1 er2
Distributor
/ MASP
Franchisee
Organizational structure
COO
Gautam Nagwekar
VP - Customer Care
K. H. Ramaswamy
Service Officer 12
Technical Officer 10
Events & Activities are done by Customer care for retaining customers
Padyatra:
Promoting Service
Attracting Post warranty Customers to Dealership workshop
All Customers to be contacted once in 3 yrs
Key deliverables – Customers contacted, Customers visiting to workshop
Behavioral Training:
MahindraShree is a loyalty program for measuring loyalty and rewards loyal customer. It
supports business development and improves dealer equity in market
System:
Dealership will be provided membership cards carrying unique numbers which they
distribute to the Mahindra tractor owners and they also given customer communication to
send SMS to head office for transaction and services they provided. System directly allot
the points on purchase and redeem after the message comes
Salient Features.
Benefits to Dealer:
• Increased Business
• Customer Loyalty
• Equity in Market
• Easy to transact at Branches, Doorsteps, franchisees
• History tracking
• Leverage the ‘right Customers’
Benefits to Customer:
• Discounts on purchases
• Points on purchases/referrals
• History tracking
• Hassle free Migration
• Avail special offers from time to time
Entrée Fee and Enrolment:
New tractor buyer can be directly the part of program and Dealership can identify the
satisfied existing Mahindra tractor owners and enroll them in the program. Entrée fee for
enrolment in program for new and old customers are free.
Calculation of Points:
Description Rs.
Labor 0
Validity
The Program validity is lifetime from the date of first sale of the Mahindra Tractor. Points
accrued will be valid for lifetime for the purpose of redemption.
Redemption
• 1 Point = 1 Rupee
1. Customers are not redeeming the points because reason behind this is that dealers
are not telling them benefit of the cards.
2. As per my observation many customers has earned more than 200 points, which 1
point is equal to 1 rupee. There are customers who have earned more than 300
points so we can conclude that customers are not aware about the points and their
value, otherwise they would have redeemed their points.
3. Company giving points to those customers who are coming anyways to them for
servicing, spare parts etc so in this case loyalty card is not increasing the sale but
it is giving more discounts which is no use.
4. Loyalty program should be like they retain the customers and try to attract new
customers.
5. Dealers are not giving the respect to loyalty program; they are running the
program as company is just forced to run.
1. Dealers are not sending the sms or they are not interested to convince the
customers, there is more irregularity in sending sms so it is difficult to control on
loyalty system.
2. Dealers send sms in the end of day.
3. In each area office only 4-5 dealers or franchises are active others are not sending
sms
4. Company should not only conclude on sms came on system , they should verify
whether farmers are learned about the program or not and it is worth to give the
points on purchase
5. Company is only depending on dealers to run the program.
2. Indore
3. Jalandhar
4. Vijayvada
5. Secunderabad
6. Tirupati
7. Pune
8. Nagpur
120
INTRODUCTION
Loyalty programs are everywhere in business. Customers interact with them multiple
times almost every day—whether shopping at a grocery store, buying a cup of coffee,
flying on an airline, staying at a hotel, or paying a cell phone bill. In other words,
companies have become convinced that it is possible to buy customers’ loyalty. Do
loyalty programs really work, or are these companies just wasting their money? Can a
loyalty program change how people behave and get them to spend more money with that
company? Can loyalty programs reduce the likelihood that customers will move their
business to a competitor?
This report attempts to answer these questions and takes a detailed look at the current
environment for loyalty programs and the strategies businesses are using in implementing
these programs. In addition, the paper presents a series of best practices that can create
meaningful competitive advantages for companies that offer loyalty programs (that is,
“host companies”), their partners, and their customers.
DEFINING LOYALTY
Before examining how loyalty programs work, it is important to define exactly what is
meant by loyalty in the context of business development and retention.
• “The extent to which your customers continue with key loyalty behavior when
competitors offer more attractive prices, products, and/or services”
For this report, loyalty is defined as follows: “Loyalty is a positive belief, generated over
the course of multiple interactions, in the value that a company and its products and/or
services provide, which leads to continued interactions and purchases over time.”
Loyalty should not be confused with customer satisfaction. Although loyalty is built on
satisfaction, organizations can have satisfaction without loyalty. Customer satisfaction is
an “opinion measure” about company performance and how customers feel their needs
were met in past interactions or by past purchases, whereas customer loyalty is a results
measure that includes expectations of future behavior.
• Leveraging that knowledge to increase the sales of undersold and/or highly profitable
products/services
The most common type of loyalty program begins when a customer enrolls. From that
point forward, the organization accurately tracks information about that “member,”
captures the member’s purchases, credits points to the member based on the rules stored
in a loyalty “engine,” categorizes the member in tiers or groups based on the member’s
value to the organization, and enables the member to redeem points for products or
services when various point levels are attained. The specific types of behavior that are
tracked and rewarded are unique to each industry/company and are typically linked to the
organization’s profitability drivers.
A loyalty program enables a company to gain detailed knowledge about its customer base
with the customer’s consent; customers actually want to provide transaction and detailed
profile information to ensure that they receive the full benefits of being a member of the
program. In some market segments—such as business-to-business—companies already
possess significant knowledge about their customers. As a result, these firms will not see
customer knowledge as an important component of a loyalty program’s value. However,
for most business-to-consumer companies, gaining this level of intimate customer
knowledge is a critical benefit of a loyalty program. In such B2C industries, loyalty
programs enable companies to match their faceless customer purchase data (what was
bought, when, at what store) with specific customer profile information, which can then
be used to create targeted marketing promotions or redesign services around high-value
customers’ needs.
Most loyalty programs today do not create high enough switching costs for members. For
example, airline industry frequent-flier programs all provide virtually the same product (a
seat, perhaps with a few extra inches of legroom) and the same membership benefits
(separate customer service number, priority boarding, priority upgrades, and bonus
miles). If gold-tier members on one airline want to switch to a competitor because the
competitor just added nonstop service on their favorite routes, all they have to do is fax
the competitor their last frequent-flier statement, and they will immediately be made gold
members of the competitor’s frequent-flier program. Because the products and services
these two airlines and their loyalty programs provide are virtually identical, the members
can switch to a competing carrier at virtually no cost to themselves.
However, if the first loyalty program offered a unique set of benefits that the competing
carrier could not easily duplicate, it would be much less tempting for members to switch.
Companies use their loyalty programs to create these switching costs, by
• Leveraging in-depth member profile and transaction data to create unique offers and
product/services that a competitor, which does not know as much about the member,
cannot match
By using the personalized data provided by their loyalty program, companies can create a
win-win relationship with their members that cannot easily be replicated by their
competitors.
Most companies do not want to compete on price. Even those whose business models are
initially predicated upon providing the lowest-cost service (for example,
low-cost carriers such as Southwest Airlines and JetBlue Airways) often find that they
must focus on providing value beyond price as they mature, their costs rise, and new
upstarts beat them on price.
In addition, for companies that have not traditionally competed on price but suddenly find
that their products are becoming commodities, brand equity is often determined by the
additional value these companies can provide beyond products alone. Today, companies
in a number of industries are in this position. Examples include airlines that have reduced
their offering to basically a seat with no food or frills, “big box” retail stores that have
depersonalized the shopping experience, and wireless firms whose networks have now
reached parity.
Companies can create this additional value by moving away from generic, one product-
meets-all-requirement products to targeted products and services that address their
customers’ unique needs. A loyalty program provides this detailed information on
transactions, demographics, and personal preferences required to successfully identify the
unique groups among a company’s customer base and then design products or services
that meet those segmented members’ needs. For example, retailers can use their loyalty
data to ensure that the products desired by high-value customers are always in stock, are
easy to find and reach, and are prominently displayed.
It is critical to note that customers are typically willing to pay for those products and
services that do a better job of meeting their underserved needs. For example, 83 percent
of hotel guests say that personalized service and attention to their needs provides value. It
is “value,” rather than price, that defines a good deal for these customers. Brand equity,
which is achieved by providing highly valued, well differentiated products and services,
is the cornerstone of loyalty. It is the additional value that customers believe a company
provides relative to its competitors that encourages loyalty to the host company and
makes customers potentially willing to pay more for its products and services.
Improved Profitability
All of the benefits discussed to this point lead to a loyalty program’s key goal and most
important metric of success: improved profitability. Greater profits are a result of
There are several sources of these additional profits, which Reichheld breaks down into
price premium, referrals, cost savings, revenue growth, and acquisition cost.
Despite their many benefits, loyalty programs can be expensive to develop and maintain.
The costs associated with loyalty programs generally fall into two categories: program
costs and system costs.
• Program costs are nontechnical expenses related to administering the program’s points,
rewards, and services.
• System costs are those invested in the technical infrastructure to support the loyalty
program.
Although some costs are directly attributable to the program—for example, loyalty
program management software—there are other costs a company would likely incur even
without a loyalty program, such as marketing software and hosting a Web site.
However, even these costs can be increased due to factors such as integrating the
marketing software with loyalty software or providing additional loyalty-related
functionality on the company Web site.
A company’s program costs will vary significantly, depending on the rewards that are
provided. For example, airlines and hotels, which are high-fixed-cost, low variable-cost
businesses, will have lower program costs. This is because airlines can allow members to
use points to redeem only those seats that would otherwise go unsold. The cost to fly
additional people who purchased their tickets with points is trivial. Further, although
members can use airline points to purchase products with many of the airline’s partners
(hotels, car rental agencies, and selected retailers), people place such a high value on
airline seats that nonairline flight redemptions account for only approximately 3 percent
of all airline loyalty program redemptions.
Other companies, such as retailers, in which every product redeemed for points must be
paid for by the company with cash, will have higher program costs. For example,
depending upon the program’s rewards and generosity, a retailer’s loyalty program can
cost between 2 percent and 10 percent of a customer’s total expenditures.
The first mileage-based loyalty program was launched by American Airlines more than
23 years ago (May 1981). Today, loyalty programs are ubiquitous. There are more than
one billion people worldwide enrolled in loyalty programs, and in some industries such as
airlines and hotels, loyalty programs have become one of the most critical means by
which companies manage their customer relationships.
• More than 125 million people worldwide are enrolled in airline loyalty programs.
• About 76 percent of all U.S. grocery retailers with 50 or more stores have a loyalty
program.
Loyalty programs are considered to be one of the most effective relationship marketing
tools across the industry. Loyalty programs are offered not only by the MBO’s but it is
also offered by saloons, casinos, hypermarkets, Car dealers etc.
Remember, you want your strategy to be strong enough to pull in the ‘swinging voters’ -
the people who don’t really care where they buy from, or feel equally loyal to two or
more outlets. There are a number of factors that determine the success or failure of any
loyalty strategy.
Offer: Success is reliant on how strong your offer is. For example, every 6th meal free, or
every 6th haircut free will probably be strong enough to keep people coming back. On the
other hand, 10% off your 10th purchase is probably not. It needs to be appealing enough
for people to say ‘wow, that’s a good deal, I’ll remember that’.
Satisfaction: People need to be happy with your service to begin with. If they were not
satisfied with their first interaction with you, it’s unlikely they’ll come back anyway. It
sounds obvious, but it’s a reminder to get the little things right before worrying about a
loyalty campaign.
Convenience: If people find it easy to keep the loyalty card handy, there is a better chance
they will use it. If, for example, it’s too big to fit in their wallet, they’ll probably throw it
away. `
Promotion & Exposure: If you treat your loyalty card like it’s nothing special, your
customers will too. Ask them every time they buy, ‘do you have your loyalty card
handy?’ Make sure that every person who comes in knows that it’s available, and is
offered one.
Comparative Analysis of Customer Loyalty program in different sector:
I have studied the customer loyalty program of different companies in different industries
according the same parameter. Industries are as follows:
• Automotive Industry
• Retail Apparel Industry
• Retail Food Industry
• Aviation industry
• Petroleum Industry
• Hospitality industry
Passport
• Reward all customers who follow the FORD guidelines on routine services
through FORD dealerships.
• Ensure customers who trade –in for Ford car are rewarded for their loyalty.
• Ensure a lifetime relationship with Ford and thereby help ford drive customer
retention.
Salient Features.
• Program Validity Period – 5 years from the date of first sale of vehicle & 1 year
for redeeming accrued points
The Program validity is 5 years from the date of first sale of the Ford vehicle. Points
accrued will be valid for 1 year beyond this period for the purpose of redemption.
Privilege Points
• Bonus Points
• Service Points
• Loyalty Points
Bonus Points
• 50 pts for each PMS in 1stYear & 100 points for each service in subsequent years.
Service Points
Loyalty Points
• Continued ownership
• To earn loyalty bonus a customer needs to perform all PMS mentioned in the
owners manual with an exception of missing one PMS in a year.
Example- Diesel needs to perform 3 PMS in a year to earn his loyalty points for
that particular year.
0 5,000 50 50 50
10,000 50 100 100
End of Yr 1 20,000 50 71 a/ 221 2,000 2,221
30,000 100 321 2,321
End of Yr 2 40,000 100 97 a/ 518 2,000 4,518
50,000 100 618 4,618
End of Yr 3 60,000 100 359 a/ 1,077 2,000 7,077
70,000 100 1,177 7,177
End of Yr 4 80,000 100 310 a/ 1,587 2,000 9,587
90,000 100 1,687 9,687
End of Yr 5 100,000 100 310 a/ 2,097 2,000 12,097
Redemption:
• 1 Point = 1 Rupee
• Customer can start redeeming his service and bonus points when it reaches 500
points in his account & he is a member of CG for 6 months
The Hero Honda GoodLife Program is members very own passport to the good things of
life. It brings an easy to use privilege card that offers a host of special rewards and
benefits. Providing with fabulous returns on their spends, it is surely the most convenient
way to complement your good life.
Make the most of Hero Honda GoodLife Program membership card. Every time when
member visit an authorized outlet, They get an opportunity to earn points. Accumulate
points to reach milestones and at every milestone, they can use their card to redeem
points for a range of exciting rewards and privileges.
Three years membership and 3 years insurance cover pay Rs. 250.
World of Rewards:
All members enrolled in a month get a chance ot participate in an exciting lucky draw and
4 lucky winners get a chance to win a Hero Honda Splendor+ bike.
REFERRAL POINTS:
Member can earn the ‘First Transaction Gift’ on their first program transaction through
the card and also earn 500 points as first transaction benefit.
Get a free Personal Accidental Insurance worth Rs. 1 lakh on their successful enrolment.
GO GREEN
Get 50 Green Reward points for every Pollution Under Control check of vehicle. Present
the Pollution Under Control certificate to the dealer and earn points.
SERVICE BONUS
Get 100 points per service and 500 as continuity bonus on every 6th regular service
Get to know about the latest happenings with special Hero Honda GoodLife Program
newsletter, “Suhana Safar”
Maruti Suzuki Loyalty card is a unique loyalty reward program designed exclusively for
the owners of Maruti Suzuki Car. The program is loaded with powerful features and
offers the best services along with exciting rewards and privileges. With this program
members not only get rewarded on their spends but also on the contribution they make
towards the ever increasing sales of Maruti Suzuki.
So next time whenever members refer their friends/relatives to buy a new Maruti Car or
get their car serviced at Maruti Suzuki network they can use Maruti Suzuki Loyalty Card
and gets rewarded with high value Auto points
This is not all. To maximize the benefits on the Loyalty Card, Maruti has partnered with
State Bank of India- India’s leading and most trusted bank. Maruti & SBI are both
leading brands, have consistently spelt trust and quality in all their product offerings for
the Indian consumer
There is a card for everyone, just apply for the one of your choice.
• 100 Auto Points on referring a person to learn driving at Maruti Drving School.
Every time members use their SBI Maruti Card for shopping/dining they would be
rewarded with 1 Auto Point on every Rs 125 spends.
Exclusive Benefits:
International Gold Credit Card With global acceptance
With both Maruti Card members will get Rs 3000 additional discount over and above all
other applicable discounts whenever member exchange their old Maruti Suzuki car with a
new Maruti Car at the same dealership.
Members get rewarded with 1000 Auto Points each time they refer a friend or relative to
buy a new Maruti Suzuki car. It is ensured that person whom member has referred
presents the duly filled referral voucher (available in the welcome pack of SBI Maruti
Card) at the dealership at the time of first enquiry.
The Auto Points member earn can easily be redeemed at all participating Maruti Suzuki
dealerships. One Auto Point is equal to one Rupee in value
Member can redeem their Auto Points anytime at Maruti Suzuki network to make
payments for vehicle maintenance/repairs or for purchase of Maruti Genuine Parts,
Maruti Genuine Accessories, Maruti Insurance and other consumable.
Member can redeem their Auto Points at Maruti Suzuki dealerships once they have
earned 500 Auto Points.
Member can use the Autopoints earned through regular usage while exchanging your car.
You also get exchange loyalty bonus of 3000 Auto Points. This would be over and above
all other discounts available at the time of car exchange.
If member spend Rs. 2000 or more in first 60 days of card issuance then the first years fee
would get reversed.
If member spend Rs. 50,000 or more in a year, then the subsequent year’s fee would get
reversed.
Member can redeem their Auto Points at Maruti Suzuki dealerships once they have
earned 300 Auto Points
Indian Oil’s
Fleet card
Each one of members Fleet Card is a smart card, which can be used by the card holder
(driver of the vehicle) to make purchases of fuel/ lubricants at designated retail outlets of
IndianOil.
Activation
Before using the feet card to make any purchases, member need to activate their card. To
activate their card, they can visit the nearest designated retail outlet of IndianOil and
present their card for changing the default PIN (0000) to a new PIN (any 4-digit number).
Fleet Control Card
This is a card to which all member fleet cards are linked. This card is not meant to be
inserted in the smart card terminal for any transaction. However, the Fleet Control Card
Number can be used for the following transactions.
CCMS Recharge
Members use Fleet Control Card Number & Control PIN to recharge their CCMS
Account by making a lump sum cash deposit at a any designated retail outlet. Thereafter
money available in the CCMS A/c can be used for reloading multiple fleet cards through
CCMS Reload, at any of the designated retail entries Accumulate XTRA Points: All
transactions on their vehicle-specific fleet cards are linked to the Fleet Control Card;
therefore, all XTRA Points earned by each of fleet cards accumulate against this card.
Member use their Control Card Number & Control PIN on a smart card terminal at a
designated Retail Outlet of IndianOil for instant redemption of XTRA Points for fuel and
lubes. You can also submit your request for redemption of any other reward item from the
rewards Catalogue on the smart card terminal.
The web User ID and Password will allow you to access web-based services of
XTRAPOWER such as viewing transactions on your fleet cards, vehicle tracking, CCMS
& card wise balance, XTRA Points' balance, redemption of XTRA Points etc.
Note In case of credit variant of XTRAPOWER card, the prepaid pouch of the card must
have the required amount so as to avail of online tracking facility
XTRAPOWER is one-of-a-kind fleet card program of IndianOil, which gives you XTRA
convenience, XTRA security and XTRA opportunity to earn truckloads of rewards. It is a
tailor-made program for Fleet Owners, Operators & Corporates as well.
With XTRAPOWER Fleet Card members now have an easy, convenient and rewarding
way to drive, monitor and control their entire fleet. It facilitates cashless fuel purchase
and gives them systematic record of transactions through the card. It is a powerful and
unique fleet management tool for an efficient and cost-conscious fleet owner.
The XTRAPOWER smart card is personalized with details like Card Number, Card
Member's Name, Customer ID, Vehicle Number and Expiry Date printed on the card.
There are two variants of XTRAPOWER fleet card Prepaid & Credit. On prepaid cards,
pre-load as much money as you require. Within prescribed limit the pre-loading facility
has been made available at designated Retail Outlets of Indian Oil. You can also deposit
the desired amount in Central Cash Management System (CCMS) through designated of
HDFC bank.*
On the credit variant, cards are sent with credit limit as approved by the credit partner
Sundaram Finance Limited (Shortly to be made available through other banks).
Freedom:
The XTRAPOWER fleet cards are accepted at designated Retail Outlets of IndianOil,
where "Quality & Quantity" of fuels is assured. Every time when need to tank up fuel,
drive into one of these IndianOil Retail Outlets and use the fleet card to purchase Auto
fuel and lubricants.
Control:
XTRAPOWER gives you full control on the amount you load on your prepaid cards from
wherever you are. For example, you can make payments in Mumbai and reload your Fleet
Cards in Chennai. In case of credit variant, there is a pre-approved daily limit on the card.
For every transaction, charge slip would be printed (shown alongside) for your records.
This slip will indicate the date, time and location of the transaction, card number, product
purchased, value of purchase, card balance after transaction and odometer reading of the
vehicle (if provided by the driver) etc. One copy of the transaction slip is given to the
driver of the vehicle. With the help of these slips they can keep track of their auto fuel/
lubes expenses and routes traveled by each of their fleet vehicles.
Tracking:
Xtra Points:
Member earn XTRA Points every time they use XTRAPOWER fleet card(s) for making
purchases of auto fuels & lubricants, which on accumulation, can be redeemed for fuel,
lubricants and many more exciting gifts.
Xtra Protection:
Now enjoy XTRA Protection through XTRAPOWER insurance cover for Personal
Accident, Medi-claim and lost card liability. The Insurance Cover is provided to the Card
member as well as to the vehicle crew.
The lost card liability insurance protects from any liability as a result of card loss or card
theft.
Xtra Benefits:
In addition to the key benefits, XTRAPOWER provides you with value-added benefit of
discounts on fleet-related products e.g. Tyres, spares, services etc. through alliance
partnerships developed with various manufacturers. (Currently available on JK Tyres
only)
XTRAPOWER program offers card-insert based basic truck tracking at no extra cost.
It also offers "Online Tracking" facility (at nominal cost), which would vastly improve
fleet utilization.
XTRAPOWER card members will enjoy the power of IndianOil's nation-wide network of
retail sales points, supported by IndianOil's team of Sales Officers and Fleet Managers.
Consolidated Reports:
Objective:
Ensure stickiness by increasing rewards to customers on every purchase they make at the
shop.
Eligibility:
Modalities:
Earning of points:
Customers present their Shoppers stop First Citizen Card to the cashier before making the
payment and ensure that points are get credited to their account.
If points get credited then first citizen card number will come on cash memo
For redeeming the reward points reward Points Voucher is being used.
Reward Points can be used to buy anything within the store except certain merchandise.
Reward points should be redeemed within the First Citizenship validity period.
Validity:
First Citizenship is valid for a period of 2 years. After the period points get expired.
Tiers:
Benefits at a glance
First Citizen 1 reward Point for 1 reward Point for 1 reward Point for
reward points every purchase of every purchase of every purchase of
Rs.100 Rs.50 Rs.34
Extra Reward - 1% 2%
points on preferred
brands
Up gradation of Tiers:
Classic Moment:
Member cannot renew the Classic Moment Card, They have to upgrade or cease being a
Shoppers Stop First Citizen.
Silver Edge:
Purchase worth Rs.10, 000 in Shoppers Stop for validity period for being member of
Silver Edge card member. Renew the Silver Edge card customer has to do purchase of
Rs.10, 000 in validity period.
Golden Glow:
For up grading from Silver Edge to Golden Glow, customer has to purchase of Rs.40, 000
in Shopper stop for validity period. Renew the Silver Edge card customer has to do
purchase of Rs.40, 000 in validity period.
Results:
Has generated a database of over 4 lakh members who contribute to nearly 50% of the
total sales of Shoppers’ Stop
Pantaloon Retail India Limited
Green Card is your passport to a whole new world of exclusive benefits and privileges.
Regular updates on collections and promos via catalogues, sms and email.
Apparel, perfumes & cosmetics, toys, Bluesky, aLL, Depot, Planet Sports & accessories.
Valid on categories within Pantaloons only.
Now you can upgrade to even higher privileges by becoming a 7 star member.
The new improved Green Card has a 7 star upgrade status, which will offer higher
privileges to this exclusive group of members.
1 Star Members
Gift Voucher worth Rs. 200 on enrolment
3 Star Members
5% discount on every purchase
5 Star Members
An exclusive 7.5% discount on every purchase
7 Star Members
A whopping 10% discount on every purchase
To avail this discount swipes the card all the time of purchase.
Upgrade is not dependent on the date of enrolment or calender year. Upgrade on the basis
of your purchases immediately preceding 12 months of current shopping date.
Customer can present the Green Card whenever they purchase from Pantaloons to avail
discounts and offers.
Three Star Card - Upgrade to a 3 star status by shopping for Rs. 8000/- immediately
preceding 12 months of current shopping date.
Five Star card - Upgrade to a 5 star status by shopping for Rs. 20000/- immediately
preceding 12 months of current shopping date.
Seven Star - Upgrade to a 7 star status by shopping for Rs. 40000/- immediately
preceding 12 months of current shopping date.
When customer shops at Pantaloons and their total purchase (including that day) in the
previous 12 months totals to the criteria value of the next tier, they upgrade to the next
status.
1 Star card is valid for a period of 2 years from the date of enrolment.
3, 5 and 7 star cards are valid for a period of one year from the date of upgrade.
Membership Renewal
Purchase worth Rs. 8000 within 2 years of card issue date and retain a 1 star status
Purchase worth Rs. 8000 within 1 year of card issue date and retain a 3 star status
Purchase worth Rs. 20000 within 1 year of card issue date and retain a 5 star status
Purchase worth Rs. 40000 within 1 year of card issue date and retain a 7 star status
Green Card benefits can be shared with members of family. Customer can apply for an
Add-on card. Their family also be entitled to direct discount and other privileges that
Pantaloon have to offer. A 1 and 3 star member is entitled to have 1 add-on card.
However a 5 and 7 star member is entitled to have 2 add-on cards.
Green Days
Exclusive Green Card shopping day give a preview of End Of Season Sale, so that
members are first to get hold of the latest merchandise.
Green Channel
Special billing counter is open to all Green Card members during End of Season sale. So
they can avoid the rush at the regular billing counter.
Green Offers & Promotions
These are exclusive shopping offers sent to members on a regular basis. Just flash Green
Card and claim the special offers and promotions. At times, offers open to all customers
are further enhanced for our esteemed Green Card members.
For all members queries, information and services, contact the Green Service Desk at any
Pantaloon Store.
Green Exchange
Members can exchange their products within 60 days of purchase. (90 days for Seven
Star members)
Green Drop
Busy schedule may not permit customers to collect their alterations or purchases. So
members can ask for the Green Drop Service and purchases will be home-delivered to
members. This service is exclusively available to the 7 star members all round the year
and also to the 5 star members except for end of season sale period.
Privileges at a Glance
Gift Voucher
Discounts on all
10% 7.5% 5% worth Rs. 200/- on
subsequent Purchases
new enrolment
Upgrade
Upgrade Enrolment Upgrade Kit Upgrade Kit Welcome Kit
Kit
Add-on Card to
2 2 1 1
Family Members
Yes - around
Yes -
the year except
Green Drop around the No No
End of Season
year
Sale
Business Partners
Green-JetPrivilege
In the first partnership of its kind in retail, Pantaloons Green Card partners with Jet
Airways’ JetPrivilege to offer dual benefits to members. With this unique partnership,
JetPrivilege Members will be able to enjoy benefits from two loyalty programmes i.e.
earn JPMiles and Enjoy Green Card discounts for shopping at Pantaloons.
JPMiles
Green Minimum Purchase Green Card
JetPrivilege for every
Card Tier Criteria for existing discounts/benefit
Tier Rs100
Awarded JetPrivilege members s
spent
Gift Voucher
BluePlus/Blue 1 Star Shop for any Value 2 worth Rs. 200 on
enrolment
JetPrivilege tier mapping to the Green Card tier is a one time activity based on the
JetPrivilege membership status and postal address in the JetPrivilege records as on
September 02, 2009.
JetPrivilege Blue Plus/Blue members will need to shop at Pantaloons and pay Rs. 50 to
enrol in the Green Card programme
Newly enrolled members as well as existing JetPrivilege members should email their
JetPrivilege membership number and GC account number to
greenservice@futuregroup.in to enable linking of the two accounts and for auto credit of
JPMiles
Green card discounts are valid on applicable categories within Pantaloons stores only.
This partnership & its offers are applicable only for JetPrivilege Platinum members
residing across India and Gold/Silver/Blue Plus/Blue members residing in cities where
Pantaloons has stores. JetPrivilege Member’s addresses considered will be the postal
address as recorded in their JetPrivilege account.
Retro Claims: Members can claim retro claim of JPMiles only within 90days (3 months)
from the date of purchase. The member can approach the Green Card counter at the
Pantaloons store with the original bill. Alternatively, the member can send the original
bill to the JetPrivilege Service Centre for claiming retroactive mileage credit. The
member cannot claim additional GC discount on his next purchase incase he has
forgotten to present his Green Card while billing his previous purchase.
JPMiles will be credited to the member’s account within 4 weeks from date of
transaction.
Pantaloon Retail India Ltd. reserves the right to refuse membership to an applicant
without assigning any reason.
All Pantaloons Green Card and JetPrivilege Programme Terms and conditions apply.
Get Voucher worth Rs 250 to be redeemed against purchase of Rs.500 or more at any Big
Bazaar Outlet on payment through the ICICI Bank -Big Bazaar Credit Card.*
4 reward points on every Rs. 100/- spent at Big Bazaar (Except EMI Purchase) 1 reward
point for all non Big Bazaar purchases.
Regular features of ICICI Bank Sterling Silver Card and facilities of Big Bazaar.
All Rewards points earned can be converted into Big Bazaar Vouchers.
Exclusive Benefits
Get Voucher worth Rs 250 to be redeemed against purchase of Rs.500 or more at any Big
Bazaar Outlet on payment through the ICICI Bank -Big Bazaar Credit Card.*
6 reward points on every Rs. 100/- spent at Big Bazaar (Except EMI Purchase) 1 reward
point for all non Big Bazaar purchases.
Special payment counters for Cardholders.
Regular features of ICICI Bank Sterling Silver Card and facilities of Big Bazaar. All
Rewards points earned can be converted into Big Bazaar Vouchers.
Other Benefits
Shakti Card
Exclusive Benefits
Get Voucher worth Rs 250 to be redeemed against purchase of Rs.500 or more at any Big
Bazaar Outlet on payment through the ICICI Bank -Big Bazaar Credit Card.*
4 reward points on every Rs. 100/- spent at Big Bazaar (Except EMI Purchase) 1 reward
point for all non Big Bazaar purchases.
Regular features of ICICI Bank Sterling Silver Card and facilities of Big Bazaar.
All Rewards points earned can be converted into Big Bazaar Vouchers.
Other Benefits
This is a card which was given to the customer at free of cost. This card helps to increase
the loyalty sales percentage of the store.
Customer will get 1% point of his purchasing amount added to his\her membership card.
When these points will become 25, it means that 25 points is equivalent to 25/-. He\she
will be able to redeem his\her points & get a discount of 25/-
With this card customer will get “Accidental Death Insurance” of 50000/- by default.
If customer will recharge their Hutch, Reliance, Airtel & Idea mobile from CSD then also
15 point of the amount he recharge will be added to his card.
In starting customer will get temporary card, which is valid for 180 days. Within 180
days customer will get permanent card, which is look like plastic card at postal address
given by the customer in the form for issuing of RelianceOne Membership Card.
Customers have to do a purchasing of 1500/- with the help of card within 3 months from
the issuing date OR he have to scan his card at least 10 times.
If above criteria is not fulfill then in next 2 months customers have to do a purchasing of
600/- with the help of card OR he have to scan his card at least 6 times.
Acccor Hotel
A|Club points are valid for a period of 12 months (365 consecutive days) following the
date on which they were recorded. Validity is extended for 365 days each time the
Member generates a hotel credit transaction on his or her account (not including
Adjustments).
If the Member does not generate any Transactions during a 365 day period, all
previously-acquired A|Club points on his or her account are lost without notice and
without the possibility of restoring or converting them.
- Get 2 A|Club points for every euro (€) spent at Sofitel, Pullman, MGallery, Novotel,
Mercure, Suitehotel and Adagio.
In dollars (US$), that's over 14 A|Club points for every $10 spent (*).
- Get 1 A|Club point for every euro (€) spent at ibis and all seasons.
Earn A|Club points only for weekend stays (including friday, saturday and/or sunday
night) at ibis hotels in France.
In dollars (US$), that's over 7 A|Club points for every $10 spent (*).
- Get 2 A|Club points for every euro (€) spent at an Thalassa sea & spa Institute when
staying at a Sofitel, Pullman, MGallery, Novotel or Mercure hotel.
- Get 1 A|Club point for every euro (€) spent at an Thalassa sea & spa Institute when
staying at ibis or all seasons.
Earn A|Club points only for weekend stays (including friday, saturday and/or sunday
night) at ibis hotels in France.
(*) For currencies other than euros, A|Club points are based on a defined exchange rate as
detailed in our Terms & Conditions. An average exchange rate has been used for the
above examples.
Elite A|Club members earn extra bonus A|Club points - points that actually count towards
achieving the next elite level!
- Silver elite members receive 50% bonus A|Club points.
- Gold elite members receive 75% bonus A|Club points.
- Platinum elite members receive 100% bonus A|Club points - up to 4 A|Club points per
euro spent at Sofitel hotels!
A|Club Silver
Become an A|Club Silver member after staying just 10 nights or earning 2,500 A|Club
points over a period of 12 months.
Get an exclusive welcome in Sofitel hotels (excluding Thalassa sea & spa), with a
greeting drink and special gift.
A|Club Gold
Member will automatically become an A|Club Gold member after staying 30 nights or
earning 10,000 A|Club points over 12 months.
+75% bonus A|Club points
Enjoy exclusive benefits at Sofitel (excluding Thalassa sea & spa), Pullman and
MGallery hotels.
- Guaranteed room availability with 5 days notice
- Room upgrade at check-in (depending on availability and upon request)
- Late check-out until 4:00 pm (upon request)
A|Club Platinum
Member will reach A|Club Platinum status after staying 60 nights or earning 25,000 A|
Club points over 12 months.
Enjoy exclusive benefits at Sofitel (excluding Thalassa sea & spa), Pullman and
MGallery hotels
- Guaranteed room availability with 3 days notice
- Room upgrade at check-in (depending on availability and upon request)
- Late check-out until 4:00 pm (upon request)
- One Thalassa sea & spa Institute beauty & treatment product offered when staying at a
Sofitel Thalassa sea & spa hotel
- Dedicated Customer Service
- A welcome gift for minimum 10-night stays at Adagio hotels, and late check-out
(subject to availability)
- Additional services on top of the hotel stay itself, as defined here: mini-bar, telephone,
room service, paid TV, cleaning, Member meals taken in the hotel restaurant, and drinks
at the hotel bar.
- Expenses for thalassotherapy and balneotherapy treatments in a Thalassa sea & spa
center affiliated with the participating hotel, and only if the Member stays at that hotel.
Exceptions: Non-eligible expenses (stays and expenses for which the Member does not
earn A|Club points or other Program benefits)
- Extra services (even if paid at the hotel) as part of a stay that is not paid directly on site
at the hotel (such as stays bought via a Tour Operator) are not eligible for A|Club points.
- Taxes (such as VAT), tips, fees for services and other applicable fees.
- Outlays.
- Expenses related to the organization of a company seminar, banquet or any other event,
even private events, that are paid for globally by the Member (not including the Meeting
Planner card).
- All other fees paid, such as parking, business center services, high-speed Internet
access, in-store purchases, spa products and services, hair dresser or barber, beauty
parlor, and golf green fees. Note: eligibility rules regarding parking may vary with hotel
structure.
Airlines Partners
Transfer your A|Club points to Airline Miles… for even more advantages
AIR BERLIN
AIR CANADA
British Airways
Qantas
Singapore Airlines
TAM Airlines
TAP PORTUGAL
US Airways
Since it was founded in 1950, Club Med has continued to reinvent the concept of
"happiness". Today, it offers its demanding international clientele products tailored to
meet their every wish. By repositioning itself, Club Med is, now more than ever, the
place where sophistication meets fun. Because that's how Club Med sees the holiday
experience: creating an environment for guests that lets them discover all kinds of
happiness, at their own place and without fuss. Laughter, beautiful settings, the freedom
of the all-inclusive holiday, little surprises and the G.Os, all help create the spirit of the
Club Med experience. The pleasure of experiencing the exceptional, having a taste of
everything, discovering new cultures, enjoying your passion for sports, feeling
renewed… as a family or a couple, alone or with friends… you have definitely found the
key place where happiness means the world
Earn one A|Club point per euro (€) spent when you book your stay via clubmed.com, the
central reservations call center or the Club Med agencies in Europe or the US.
With a limit of 3,000 A|Club points per stay
You can also exchange your A|Club points for A|Club rewards vouchers and book a stay
in one of the over 80 Club Med villages throughout the world.
About Shell
You can trust Shell to meet your everyday need when you're on the road. Shell network
offers you friendly service, a range of quality Shell fuels including Shell V-Power,
backed by unique technological expertise and decades of research and development.
And if you use a Shell Loyalty card when you buy fuel at Shell, you'll get even more out
of every drop
Use your A|Club points to top up your Shell Loyalty balance and redeem for a wide range
of exciting rewards amongst which fuel discounts!*
Not a Shell Loyalty member already? Join now for free and locate your nearest Shell
Service Station in Austria, Germany, Hungary, Italy, Poland and Switzerland.
* In countries where available
Get 1 A|Club point for every euro you spend at any Lenôtre boutique in France, in the
restaurant and School of Cooking and Pastry at the Lenôtre Pavillon Elysée in Paris. You
also earn points on all your purchases directly via the Lenôtre Client Sales department
All these pleasures are now accessible using your A|Club rewards gift vouchers! Convert
your points into A|Club rewards, valid in Lenôtre's 17 boutiques in France, at the
restaurant and School of Cooking and Pastry at the Lenôtre Pavillon Elysée in Paris. You
can also use them to pay for your purchases directly via the Lenôtre Client Sales
department
Discounts at over 2,000 hotels, guaranted availability, Specific Advantages and A|Club
points to earn at our hotels around the world!