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Loyalty Card (ICICI BANK) Acceptance Level in India

Guide- Prof. Aftab Ahmed

Sagar DusaneMMS- B-11-(2015-17)AIAIMS- Mumbai 01

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ABOUT ICICI BANK• Industrial Credit and Investment Corporation of India-

ICICI• Promoted in 1994, Vadodara, Gujarat• Ceo- Chandan Kochhar• Headquarter- Mumbai• ICICI Bank launched internet banking operations in

1998.• In 2000, ICICI Bank became the first Indian bank to list

on the New York Stock Exchange.• ICICI Bank is India's second-largest bank with assets of

Rs. 6,461,29 billion(US$ 103 billion) at March 31, 2015.• Stock price- Rs 250/- (NSE) 12/10/2016

CRM AT ICICI BANK• Understand and differentiate: Understanding customers is

important in order to develop a sound relationship with them. Customer profiling is done in order to understand demographics, purchase pattern and channel preference. CRM also helped ICICI in valuation of its customers to understand customer profitability and Customer Life Time Value (CLV).

• Develop and customize: - In a customer centric business environment, the products and processes have to be according to customers’ needs and preferences. ICICI has always focused on developing channels of service delivery according to customers’ need and service expectation.

• Interact and Deliver: To foster a strong customer relationship ICICI ensured that all areas of the bank have easy access to relevant, actionable customer information and employees should be trained on how to use customer information to tailor interactions based on both customer needs and potential customer value. 

• Acquire and Retain: CRM helped ICICI to figure out valuable customers and made it easy to formulate retention strategies for them. It also helped it cope up with the change in customer’s life cycle and offer services accordingly.

CRM STRATEGY OF ICICI

IMPLEMENTING CRM AT ICICI BANK

Business Focus: There are various components of CRM like customer information, sales, marketing trends and marketing efficacy that acted in tandem to improve relationship between ICICI and its consumers. ICICI captured customer data and analyzed them while dealing with customers at these very touch points.

NEED FOR CUSTOMER RETENTION

• Stays loyal longer • Buys more as the company introduce new product

and upgrade existing products.• Talks favorably about to company and its products.• Pays less attention to competing brands and

advertising and is less sensitive to price • Offer product or serve ideas to the company.• Costs less to serve than new customers because

transactions are reutilized.

TOTAL CUSTOMER SATISFACTION

• Some of today’s most successful companies are expectation and delivering performance to match. These companies are arriving for TCS- total customer satisfaction.

• A customer decision to be loyal or to defect is the sum of many small encounters with the company.

• For customer’s orientated companies, customer satisfaction is both a goal and a marketing tool.

• Complaints and suggestion systems• Customer satisfaction surveys• Ghost shopping• Lost customer analysis

Tools For Tracking & Measuring Customer Satisfaction

Loyalty Program of ICICI Bank

• Hand-Picked Rewards• Payback• ICICI Bank Rewards

HAND-PICKEDREWARDS

• A program designed to make your card experience more enriching.

• Targeted group- Frequent travel, Fine dining • The Hand-picked Rewards Advantage

1. Earn points virtually every time you spend.2. There is no limit to the number of Hand-picked Rewards you

can earn.3. Points have no expiry date.4. Choose from exclusive redemption options ranging from

fashion to fragrances, dining experiences to holidays, home entertainment to hi-tech gadgets and a lot more.

PAYBACK

• PAYBACK is India's largest multi-brand loyalty program.• The PAYBACK brand network includes Big Bazaar, Brand

Factory, Central, Ezone, Food Bazaar, Futurebazaar.com, Home Town, HPCL, MakeMyTrip.com, Univercell and many more, helping you earn PAYBACK Points faster on one account

• Advantages of the PAYBACK1. One Card, many partners, more rewards – Use a single Card

to shop and earn points across partner brands network and redeem them for exciting rewards.

2. Earn PAYBACK Points every time you shop using your ICICI Bank Credit Card.

3. Exclusive partner offers and bonus point promotions.4. Endless possibilities of redeeming points for exciting

rewards.

ICICI BANK REWARDS• Earn points almost every time you spend.• There is no limit to the number of ICICI Bank Rewards

you can earn• Points have no expiry date.• Redeem points by choosing from an exclusive range of

gift items and vouchers

LOYALTY PROGRAM ACCEPTANCE RATEPayback India (formerly i-mint) is India's largest coalition loyalty program, with over 50 million members, over 50 partners and 3000 network partner outlets. German loyalty program operator Loyalty Partner took a controlling interest in i-mint in June 2010 and renamed the program PAYBACK India in July 2011. Hero's Good Life program claims over 10 million members. BPCL's Petro Bonus fuel card program has 2 million members. Indian Oils fleet card program XTRAPOWER and retail program XTRAREWARDS claim a combined customer base of 3 million. The Maruti Suzuki Auto Card, launched in association with CItibank and Indian Oil had 370,000 cardholders in October 2008.KiIngfisher Airlines FFP King Club had 2 million members in October 2010. Shopper's Stop has been offering a loyalty program called First Citizen for regular customers. Other retailers like Lifestyle (the Inner Circle Loyalty Programme) and Reliance Retail have loyalty programs.Debit card loyalty programs include State Bank Group's "State Bank Rewardz" is perhaps the largest in the world with over 110 million customers enrolled. The program is operated by Loyalty Rewards. Pinpoint operates programs HSBC and Standard Chartered Bank. The potential and size of the consumer base in India has already attracted players like Group Aeroplan and Loyalty One into the country.

 

CRITICISM FOR LOYALTY PROGRAM

• Companies complain that these loyalty programs discount goods to people that are buying their goods anyway, and that the expense of doing these programs rarely show a good return on the investment. Other critics see the lower prices and rewards as bribes to manipulate customer loyalty and purchasing decisions, or in the case of infrequent spenders, a means of subsidizing them.

• On the other hand, a 2015 study claimed that most supermarket loyalty cards in the USA do not offer any real value to their customers.

• There has also been concern expressed regarding RFID technology being introduced to loyalty cards