indianoil corporation

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Rajagiri College of Management and Applied Sciences

DECLARATION

I hereby declare that the Dissertation entitled A study to analyze the effectiveness of

XTRAPOWER Fleet Card Loyalty Program in retention of customers in IndianOil

Corporation Limited, with special reference to Cochin Office submitted in partial

fulfillment of the requirements for the award of the Degree of Business Administration is

a record of original research work done by me under the supervision & guidance of Mr.

Sajoy P.B. and the Dissertation has not formed the basis for the award of any

Degree/Diploma/ Associate ship / Fellowship or other similar title to any candidate of

any university.

Place:Date: Audrey Martina Alex

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ACKNOWLEDGEMENT

No endeavor is complete without expressing the gratitude that is due for all those who

have contributed in many ways to it. There are many individuals whom I wish to thank

for helping me in the various stages of this research project from the conception to

completion.

At the outset, I would like to thank our principal Rev. Fr. John Therezath CMI for

allowing me to do this project.

I wish to take this opportunity to express my gratitude to Mr.Sajoy P B, my project guide

for his interest and guidance in the successful completion of this project.

I also express my thanks to Mr. P.K George, Head of Department, for his valuable

guidance. I am also thankful to all the teachers for helping and guiding me to do the work

successfully.

My heartfelt thanks to Ms. Narshia Thomas, DY. Manager (Fleet Marketing), Cochin

Divisional Office, for giving me an opportunity to do the project at INDIANOIL

CORPORATION LTD., and for her valuable ideas that helped me to complete this

project in a successful manner.

This work would not have been complete without the participation of the respondents

who were patient enough to spend some time for me.

Last but not the least, I express my heartfelt thanks to my parents, sisters and friends forproviding me their help and support.

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LIST OF TABLES

S. No Table No. TITLE Pg No.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

3.10

3.11

3.12

Showing if the respondent is a single user/multi

user.

Showing the number of vehicles owned by the

respondents.

Showing the number of respondents who are

aware of the XTRAPOWER Fleet Card

Loyalty Program.


members of the XTRAPOWER Fleet Card

Loyalty Program.

Showing how respondents came to know about

the XTRAPOWER Fleet Card Loyalty

Program.

Showing how respondents rate Cashless

fuelling.

Showing how respondents rate the Reward

points and consequent redemption of points for

free diesel.

Showing how respondents rate the redemption

of Reward points for gift items.

Showing how respondents rate the Insurance

coverage provided.

Showing how respondents rate the 15%

discount availed on the purchase of JK Tyres.

Showing how respondents rate the Prepaid

options provided.

Showing how respondents rate the Credit

options provided.

41

42

43

44

45

46

47

48

49

50

51

52

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13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

3.13

3.14

3.15

3.16

3.17

3.18

3.19

3.20

3.21

3.22

3.23

3.24

Showing how respondents rate the Real Time

Gross Settlement mode of payment through

HDFC Bank.

Showing how respondents rate the facility ofCash deposit at the retail outlets.

Showing how respondents rate the receipt of

monthly statement of diesel consumption for

the vehicles

Showing how respondents rate the

CONVENIENCE provided by the

XTRAPOWER Fleet Card.


SECURITY provided by the XTRAPOWER

Fleet Card.

Showing how respondents rate the EASE OF

USAGE of XTRAPOWER Fleet Card.


CONTROL provided by the XTRAPOWER

Fleet Card.


REWARDS provided by the XTRAPOWER

Fleet Card.

Showing how respondents rate the services

provided at the petrol bunk.

Showing how respondents rate the time taken

for swiping the cards by the operators at the

petrol bunk.


XTRAPOWER Fleet Card when compared to

other competitors Loyalty Programs.

Showing how respondents rate the overall

experience with the XTRAPOWER Fleet Card

Loyalty Program.

53

54

55

56

57

58

59

60

61

62

63

64

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LIST OF FIGURES

S No. FigureNo.

TITLE Pg No.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

3.10

3.11

3.12

3.13

Showing if the respondent is a single user/multi

user.

Showing the number of vehicles owned by the

respondents.


aware of the XTRAPOWER Fleet Card

Loyalty Program.


members of the XTRAPOWER Fleet Card

Loyalty Program.

Showing how respondents came to know about

the XTRAPOWER Fleet Card Loyalty

Program.

Showing how respondents rate Cashlessfuelling.

Showing how respondents rate the Reward

points and consequent redemption of points for

free diesel.

Showing how respondents rate the redemption

of Reward points for gift items.

Showing how respondents rate the Insurance

coverage provided.

Showing how respondents rate the 15%

discount availed on the purchase of JK Tyres.

Showing how respondents rate the Prepaid

options provided.

Showing how respondents rate the Credit

options provided.

Showing how respondents rate the Real Time

41

42

43

44

45

46

47

48

49

50

51

52

53

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14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

3.14

3.15

3.16

3.17

3.18

3.19

3.20

3.21

3.22

3.23

3.24

Gross Settlement mode of payment through

HDFC Bank.

Showing how respondents rate the facility of

Cash deposit at the retail outlets.

Showing how respondents rate the receipt of

monthly statement of diesel consumption for

the vehicles


CONVENIENCE provided by the



SECURITY provided by the XTRAPOWER

Fleet Card.

Showing how respondents rate the EASE OF

USAGE of XTRAPOWER Fleet Card.


CONTROL provided by the XTRAPOWER

Fleet Card.


REWARDS provided by the XTRAPOWER

Fleet Card.

Showing how respondents rate the services


Showing how respondents rate the time taken

for swiping the cards by the operators at the

petrol bunk.


XTRAPOWER Fleet Card when compared toother competitors Loyalty Programs.

Showing how respondents rate the overall

experience with the XTRAPOWER Fleet Card

Loyalty Program.

54

55

56

57

58

59

60

61

62

63

64

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PART I

ORGANISATIONAL STUDY

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CHAPTER 1

INDUSTRIAL PROFILE

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INDUSTRY PROFILE:

Petroleum Industry is considered to be the backbone of an economy because this is the

main source of energy till date. Any economy around the world would fail to proceed a

single step in the absence of Petroleum Industry. The petroleum industry involves the

refining of crude petroleum and the processing of natural gas into a multitude of

products, as well as the distribution and marketing of petroleum derived products. The

price of petroleum is determined by the demand-supply mechanism around the globe.

Petroleum is not a domestic product and any kind of shortage in the same has serious

ramifications on all possible industries along with the economies all over the world.

Petroleum Industry always need to perform exploration research all over the world for

finding more petroleum sites which also become instrumental in the setting up of

Petroleum Industry.

The petroleum industry includes the global processes of exploration, extraction, refining,

transporting (often by oil tankers and pipelines) and marketing petroleum products. The

largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum is

also the raw material for many chemical products, including pharmaceuticals, solvents,

fertilizers, pesticides and plastics. The industry is divided into three major components:

upstream, midstream, downstream. Midstream operations are usually included in the

downstream category.

Petroleum is vital to many industries and is of importance to the maintenance of

industrial civilization itself, and thus is a critical concern for many nations. Oil accounts

for a large percentage of the worlds energy consumption, ranging from a low of 32% for

Europe and Asia and up to a high of 53% for Middle East.

HISTORY OF PETROLEUM INDUSTRY:

Various theories have been advanced over the years as to the origin of petroleum

proposing an animal, vegetable, mineral and even meteoric origin. Today however, most

scientists believe that oil and gas originated in plant and animal matter that accumulated

in fine grained sediments at the bottom of ancient seas many millions of years ago. This

theory suggests that oil originated as the remains of countless organisms that either lived

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in the sea or were deposited there with mud and silt from prehistoric rivers and streams.

The remains of these ancient plants and animals were transformed into oil and gas by

bacterial action with heat and pressure resulting from deep burial beneath other

sediments.

THE FIRST OIL WELLS:

For thousands of years, the only sources of petroleum had been surface seeps or tar pits.

These sources were not very productive, so certain individuals decided to look for oil

underground by drilling. In 1858, one such individual, a 39 year old carriage maker from

Hamilton, Ontario, named James Miller Williams made the first major commercial oil

discovery in North America at Oil Springs, Ontario. Drilling in gum beds in Lambton

County, 25km southeast of Sarnia, he struck oil at a depth of only 18 meters. William

refined the oil he produced and sold the product as lamp oil. In the following year,

Colonel Edwin L. Drake discovered oil in Titusville, Pennsylvania by drilling to 21

meters. This discovery signalled the birth of the modern petroleum industry in the United

States.

The Oil Boom begins

As a result of the oil discoveries of the 1850s, numerous refineries were built to turn

crude oil into kerosene for lamps and into lubricating oils for the machines of the

industrial revolution. Oil began to replace coal as the fuel for steam engines.

INDIAN PETROLEUM INDUSTRY:

Indian Petroleum Industry started its journey during the fiscal year 1890 in the north

eastern provinces of India especially in the place called Digboi. The production of

petroleum along with the exploration of new sites was primarily restricted to north-

eastern India up to the 1970s. But the scenario changed drastically with the discovery of

Bombay High. Indian Petroleum Industry was entirely state sponsored and was under the

management control of all the industries involved in it were entirely with the

government.

After the inception of the Liberalization-Privatization-Globalization (L-P-G) policy in

the month of July, 1991, the government had started allowing the Indian Petroleum

Industry to go into private as well as government-private joint ventures. The deregulation

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process in the Indian Petroleum Industry got a boost in the year 1997 when it was

decided that the process of liberalization and deregulation would be accelerated in this

industry and all the regulations would go away from the month of April in the year 2002.

Along with globalization, the rate of growth of the economy along with the rate of

growth of energy consumption increased at the rate of six percent on an yearly basis

especially between the period 1991 and 2001. The demand for petroleum products

increased at an annual rate of 5.5% during 1990-91and 2000-01 which is more than that

of the production rate of crude oil processing. But the Indian petroleum industry

stumbled a bit in the year 2001 when the Indian economy observed a slowdown in its

economic rate along with the overall industrial output. Impediments related to

infrastructure all came up as serious problems in the path of Indian petroleum industry.

MINISTRY OF PETROLEUM AND NATURAL GAS (INDIA)

The Ministry of Petroleum and Natural Gas (MOP & NG) is a ministry of the

Government of India. It is responsible for the exploration, production, refining,

distribution, marketing, import, export and conservation of petroleum, natural gas,

petroleum products and liquefied natural gas in India.

The ministry is headed by the cabinet minister Jaipal Reddy. Ratanjit Pratap Narain

Singh, the MP from Padrauna assembly segment of Kushi Nagar in Uttar Pradesh is the

Minister of State in the Ministry of Petroleum and Natural Gas.

FUNCTIONS OF THE MINISTRY

1. Exploration and exploitation of petroleum resources, including natural gas.

2. Production, supply distribution, marketing and pricing of petroleum including natural

gas and petroleum products.

3. Oil refineries, including Lube plants.

4. Additives for petroleum and petroleum products.

5. Lube blending and greases.

6. Planning, development and control of, and assistance to all industries dealt with by the

Ministry.

7. All attached or subordinate offices or other organisations concerned with any of the

subject specified in this list.

8. Planning, development and regulation of oilfield services.

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9. Public sector projects failing under the subjects included in this list.

10. Engineers India limited and IBP Company together with its subsidiaries, except such

projects as are specifically allotted to any other Ministry/Dept.

11. Administration of various Central laws relating to Petroleum and Natural Gas.

PRICING POLICY IN INDIA

The crude oil prices have finally touched $100 per barrel a psychological barrier and a

statistical insanity. The composition of Indian crude basket represents average of Oman

& Dubai for sour grades and Brent (dated) for sweet grade in the ratio of 59.8:40.2 since

April 2006. The Indian crude basket has touched a high of over $92 in the new year, but

is yet to hit the three-figure mark.

India imports about 76 per cent of its crude oil requirements which amounts to an oil

import bill of around $50 billion every year. Indias crude oil import bill rose by 3.48%

in rupee terms and 16.67% in dollar terms during the first half of the current fiscal year.

The appreciation in rupee value by 12.3% this year, the most since at least 1974, has

helped partially offset the sharp rise in global oil prices. As per the Government, every

one rupee appreciation in the exchange rate of Indian rupee against US dollar will help

reduction in the net oil import bill by around Rs 3950 crore. It should help that the rupeeis forecast to advance 3.4 percent next year to 38 per dollar by the end of December.

At current rates, petroleum has an under recovery of nearly Rs 9.5 per litre, diesel Rs

11.3 per litre, LPG Rs 380 per cylinder, and kerosene Rs 21 per litre. However, Indian

Express estimates the loss to marketing companies for petrol at Rs 8.74 a litre, diesel at

Rs 9.92 per litre, kerosene Rs 20.53 a litre and LPG at Rs 256.35 per cylinder.As per the

government policy of 2003, the subsidy component by the government has remained

constant since 2004-05 at Rs 22.58 per per LPG cylinder and Rs 0.82 per litre of

kerosene. The balance subsid provided by the marketing companies from their own

pockets 2007 have been Rs13814 crores on kerosene and LPG, and Rs 12549 crore on

petrol and diesel. If current price trends hold, the under-recoveries to the marketing

companies are estimated to be around Rs 70,000 crore this financial year around

o.75% of Indias GDP. This has to be shared between the three marketing companies, the

upstream companies ONGC, Oil India and GAIL and the government.

Domestic pricing continues to be a politically sensitive topic, with a broad consensus

across the political spectrum to stall any upward revision of prices. There is a Group of

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ministers, to suggest an alternative model for pricing of domestic products. As with the

Indo-US nuclear deal, the left and the right are both opposed to any hike in prices of

domestic petroleum products. The government is also worried about the inflationary

impact of higher domestic prices of petroleum products. A cut in the customs duty on the

crude oil and in the excise duty in petrol and diesel by the government is likely to keep

the prices suppressed for some more time.

The subsidies, whether direct and transparent by the government or indirect as in tax

cuts, oil bonds and compensation by government owned upstream companies, are a drain

on the resources of the government. The losses to the exchequer can only be reduced

when the consumer pays the right price for the product.

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CHAPTER 2

ORGANISATIONAL PROFILE

COMPANY PROFILE:

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INTRODUCTION:

IndianOil Corporation Limited:

IndianOil Corporation Limited, orIndian Oil , ( BSE : 530965,NSE : IOC ) is an

Indian state-owned oil and gascorporation with its headquarters inMumbai , India. It is

Indias largest commercial enterprise, ranked 98th on the Fortune Global 500 list for

2011. IndianOil and its subsidiaries account for a 47% share in the petroleum products

market, 34% share in refining capacity and 67% downstream sector pipelines capacity in

India. The Indian Oil Group of Companies owns and operates 10 of India's 21 refineries

with a combined refining capacity of 65.7 million metric tons per year. President of India

owns 78.92% (191.62 crore shares) in the company. In FY'11 IOCL sold 64.1 million

tonnes of petroleum products and reported a PBT of Rs.9096 crores, & Government of

India earned an excise duty of Rs.25789.90 crores and tax of Rs.1650 crores.

IndianOil operates the largest and the widest network of fuel stations in the country,

numbering about 19,463 (15,946 regular ROs & 3,517 Kissan Sewa Kendra). It has also

started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over

62.4 million households through a network of 5,456 Indian distributors. In addition,

IndianOil's Research and Development Center (R&D) at Faridabadsupports, develops

and provides the necessary technology solutions to the operating divisions of the

corporation and its customers within the country and abroad.

HISTORY OF INDIANOIL CORPORATION LIMITED:

IndianOil owes its origins to the Indian government's conflicts with foreign-owned oil

companies in the period immediately following India's independence in 1947. The

leaders of the newly independent state found that much of the country's oil industry was

effectively in the hands of a private monopoly led by a combination of British-owned oil

companies Burmah and Shell and U.S. companies Standard-Vacuum and Caltex.

In September 1964, two companies namely Indian Refineries Ltd. and the IndianOil

Company which were formed in the late 1950s were merged to form the IndianOil

Corporation. The government announced that all future refinery partnerships would be

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http://exchange/http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=530965http://india/http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=IOC&section=7http://petroleum/http://gas/http://gas/http://india/http://india/http://indane/http://faridabad/http://faridabad/http://exchange/http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcode=530965http://india/http://www.nseindia.com/marketinfo/companyinfo/companysearch.jsp?cons=IOC&section=7http://petroleum/http://gas/http://india/http://india/http://india/http://indane/http://faridabad/


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required to sell their products through IndianOil. It was widely expected that IndianOil

and India's Oil and Natural Gas Commission (ONGC) would eventually be merged into a

single state monopoly company. Both companies grew vastly in size and sales volume

but, despite close links, they remained separate. ONGC retained control of most of the

country's exploration and production capacity. IndianOil remained responsible for

refining and marketing. During this same decade, India found that rapid industrialization

meant a large fuel bill, which was a steady drain on foreign exchange. To meet the crisis,

the government prohibited imported petroleum and petroleum product imports by private

companies. In effect, IndianOil was given a monopoly on oil imports.

The government decided to nationalize the country's refineries. The Burmah-Shell

refinery at Bombay and the Caltex refinery at Vizagapatnam were taken over in 1976.

The Burmah-Shell refinery became the main asset of a new state company, Bharat

Petroleum Ltd. Caltex Oil Refining (India) Ltd. was amalgamated with another state

company, Hindustan Petroleum Corporation Ltd., in March 1978. Hindustan had become

fully Indian-owned on October 1, 1976, when Esso's 26 percent share was bought out.

On October 14, 1981, Burmah Oil's remaining interests in the Assam Oil Company were

nationalized, and IndianOil took over its refining and marketing activities. Half of India's

12 refineries belonged to IndianOil. The other half belonged to other state-owned

companies.

By the end of the 1980s, India's oil consumption continued to grow at eight percent per

year, and IndianOil expanded its capacity to about 150 million barrels of crude per

annum. In 1989, IndianOil announced plans to build a new refinery at Pradip and

modernize the Digboi refinery, India's oldest. However, the government's Public

Investment Board refused to approve a 120,000 barrels-per-day refinery at Daitari in

Orissa because it feared future over-capacity.

By the early 1990s, IndianOil refined, produced, and transported petroleum products

throughout India. IndianOil produced crude oil, base oil, formula products, lubricants,

greases, and other petroleum products. It was organized into three divisions. The

refineries and pipelines division had six refineries, located at Guwahati, Barauni,

Gujarat, Haldia, Mathura, and Digboi. That changed in April 2002, however, when the

Indian government deregulated its petroleum industry and ended IndianOil's monopoly

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on crude oil imports. The firm owns and operates seven of the 17 refineries in India,

controlling nearly 40 percent of the country's refining capacity.

VALUES:

IndianOil nurtures the core values of Care, Innovation, Passion and Trust across the

organisation in order to deliver value to its stakeholders.

Care stands for

Concern

Empathy

Understanding

Co- operation

Empowerment

Innovation stands for

Creativity

Ability to learn

Flexibility

Change

Passion stands for

Commitment

Dedication

Pride

Inspiration

Ownership

Zeal & Zest

Trust stands for

Delivered promises

Reliability

Dependability

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Integrity

Truthfulness

Transparency

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OBJECTIVES:

1. To serve the national interests in oil and related sectors in accordance and consistent

with Government policies.

2. To ensure maintenance of continous and smooth supply of petroleum products by

way of crude oil refining, transportation and marketing activities and to provide

appropriate assistance to customers to conserve and use petroleum products

efficiently.

3. To enhance the Companys self sufficiency in crude oil refining and build expertise in

laying of crude oil and petroleum product pipelines.

4. To create a strong research & development base in refinery processes, product

formulations, pipeline transportation and alternative fuels with a view to

minimizing/eliminating and to have next generation products.

5. To optimize utilization of refining capacityand maximize distillate yield and gross

refining margin.

6. To minimize fuel consumption and hydrocarbon loss in refineries and stock loss in

marketing operations to effect energy conservation.

7. To earn a reasonable rate of return on investment.

8. To avail of all viable opportunities, both national and global arising out of the

Government of Indias policy of liberalisation and reforms.

9. To achieve higher growth through mergers, acquistions, integrations and

diversification by harnessing new business opportunities in oil exploration &

production, petrochemicals, natural gas and downstream opportunities overseas.

10. To inculcate strong core values among the employees and continously update skill

sets for full exploitation of the new business opportunities.

11. To develop operational synergies with subsidiaries and joint ventures and

continuously engage across the hydrocarbon value chain for the benefit of the

society at large.

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ORGANISATION CHART:

21

IndianOilCorporation

CochinDivisional

Office

Senior

Divisional RetailSales Manager

ManagerRetailSales

ManagerRetailSales

ManagerRetailSales

Dy.ManagerFinance

Dy. ManagerFleet

Marketing

Manager(Engg)

Twofield

Officers

Twofield

Officers

Twofield

OfficersAssistant Assistant

Dy.Manager(Engg)

AssistantSecretary


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GROUP COMPANIES:

IndianOil is currently metamorphosing from a pure sectoral company with dominance in

downstream in India to a vertically integrated, transactional energy behemoth. The

Corporation is already on the way to becoming a major player in petrochemicals by

integrating its core refining business with petrochemical activities, besides making large

investments in E&P and import/marketing ventures for oil & gas in India and abroad.

Lanka IOC PLC IndianOil (Mauritius) Ltd. IOC iddleEastFZE

Chennai Petroleum IndianOil CREDA

Corporation Ltd. (CPCL) Biofuels Limited

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PRODUCT PROFILE:

Petrol/Gasoline: Automated gasoline and gasoline-oxygenate blends are used in internal

combustion spark ignition engines. These spark ignition engine fuels are primarily used

in passenger cars, off-highway utility vans, farm machinery and in other spark ignition

engines.

Crude Oil: It is a remarkably varied substance, both in its use and composition .It is

formed from the preserved remains of prehistoric zooplankton and algae, which have

been settled to the sea bottom in large quantities under anoxic conditions.

Diesel/Gas oil: It is used in cars, motorcycles, boats, and locomotives. Automotive diesel

fuel serves to power trains, buses, trucks and automobiles, to run construction, petroleum

drilling and other off-road equipment and to be the prime mover in a wide range of

power generation and pumping applications.

Indane Gas: Indane is today one of the largest packed LPG brands in the world and has

been conferred the coveted Consumer Superbrand status by the Superbrands Council of

India. Indane is today an ideal fuel for modern kitchens, synonymous with safety,

reliability and convenience.

Natural Gas: Natural Gas has emerged as the fuel of choice across the world. It is

steadily replacing traditional fossil fuels due to its environment friendly characteristics

which help in meeting the stipulated automobile emission norms.

SERVO Lubricants and Greases: IndianOils SERVO is the brand leader among

lubricants and greases in India. With over 500 commercial grades and 1500 formulations

encompassing literally every conceivable application, SERVO serves as a one-stop shop

for complete lubrication solutions in the automotive, industrial and marine segments.

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Bitumen: It is a common binder used in road construction. It is principally obtained as a

residual product in petroleum refineries after higher fractions like gas, petrol, kerosene

and diesel etc. are removed.

LOYALTY PROGRAM:

XTRAPOWER Fleet Card Program

INTRODUCTION:

Presenting the IndianOil XTRAPOWER Fleet Card Program A complete fleet

management solution for Fleet Owners/Operators and Corporates. XTRAPOWER is a

Smart Card based Fleet Card Program, which facilitates cashless purchase of fuel and

lubes from designated retail outlets of IndianOil through flexible prepaid and credit

facilities.

Benefits of XTRAPOWER Fleet Card Program:

Payment convenience - Both prepaid and credit options.

Detailed fleet management reports (Monthly statements)

Facility to track each vehicle.

Personal Accident Insurance coverage and Medi-claim for fleet owner, driver,

co-driver and helper.

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Attractive rewards on purchase of fuel & lubricants through the card.

Opportunity for earning additional rewards on purchase of JK Tyres and Exide

Batteries.

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PART II

RESEARCH PROJECT

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CHAPTER 1

THEORETICAL FRAMEWORK

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REVIEW OF LITERATURE

THE ROLE OF SERVICE AND SALES SKILLS IN CUSTOMER RETENTION

Prepared by: Joan B. Krawitz

Improving Customer Retention Rates through Direct Intervention

The significance of customer retention was first quantified by Reichheld and Sasser

(1990). They found that profits in service industries, including credit card companies,

increased in direct proportion to the length of a customers relationship. They noted the

experience of MBNA American, citing its customer defection swat team staffed by

some of the companys best telemarketers, which achieved a 50% success rate in

persuading customers to retain their credit cards. At MBNA, a 5% improvement in

customer retention increased average customer value by 125%. Reichheld and Sasser

(1990) concluded that cutting defections in half could more than double the growth rate

of the average company.

Everett (1993) noted that a dedicated customer retention unit developed by Patrick J.

Swanick at the Society National Bank in Cleveland , achieved a 57% success rate in

persuading callers to remain with the bank. According to Everett (1993), these

representatives first probed for causes, then tried to resolve the problem. He added that

they followed up on each call with a letter to the customer.

THE LINK BETWEEN CUSTOMER SATISFACTION AND CUSTOMER

RETENTION

Many authors (Reichheld and Kenny, 1990; Zeithaml, et.al., 1990; Bowen and Lawler,

1990; Schlesinger and Heskett, 1991) have cited the relationship between customer

retention and the quality of service experienced by the customer.

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Reichheld and Kenny (1990) specified six factors as imperative to improving retention:

senior management commitment; a customer-focussed culture in which all employees

and managers focused their full attention customer satisfaction; retention information

systems that tracked and analyzed the root causes of defections; empowerment of front

line employees to take actions that provided immediate customer satisfaction; continuous

training and development; and incentive systems based on customer retention.

Parasuraman, et.al (1984) studied quality in four service businesses, including credit card

services, and developed a model of service quality. The noted that:

A variety of factors, including resource constraints, management perceptions of

consumer expectations and the firms service quality specifications will affect service

quality from the consumers viewpoint.

(Parasuraman, et.al., 1984)

Parasuraman, et.al (1984) identified a set of discrepancies or gaps between how

executives perceive the quality of the service they provide and the tasks associated with

delivering those services to customers. They found that the customers perception of

service quality depends upon the size and direction of the gap between the service the

customer expects to receive and what he or she perceives to have been received.

FACTORS INFLUENCING CUSTOMER RETENTION

Looking in more detail at the major factors that influence customer retention - not only to

retailers but also to suppliers in all sectors, including business to business (B2B) - the six

key areas of focus can be summarised as follows:

1. Core offeringThe companies that boast the highest levels of fiercely loyal customers have built that

loyalty not on card programmes or gimmicks, but on a solid, dependable, core offering

that appeals to their customers. These companies have focused intently on what they

know appeals to the type of customers they want to attract, and have determinedly

concentrated on delivering what is expected every time. North American retailer,

Nordstrom, is well known for the loyalty of its customers. It built this loyalty by

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understanding what its customers wanted and then empowering its employees to deliver

those needs consistently.

Elements of the core offering that have a large role in building customer loyalty include:

Location and premises

Location and premises clearly play a part in engendering loyalty. The Three L's

of retail - "location, location and location" - are undoubtedly important, and attractive

and functional premises are equally so.

Service

Whether selling services or products, the level of service perceived by the

customer is generally key to generating loyalty. It can be argued that some customers

buy only on price, so all that is necessary to retain their loyalty is consistently low prices.

To certain extent that is true. But in most cases, any loyalty shown will be only to the

prices instead of the business. Should a competitor offer even lower prices, those

customers are likely to defect. Companies that have adopted a policy of everyday low

prices (EDLP) can be more vulnerable to competition than those who have built their

customers' loyalty on superior products or service.

The Product or Service

The products or services offered must be what customers want. The days when

businesses could decide what they wanted to sell or supply, and customers would buy it,

are long past. The customers' needs and wants are now paramount. If you don't meet

them, someone else will.

2. Satisfaction

Clearly, satisfaction is important; indeed essential. But, taken in isolation, the level of

satisfaction is not a good measure of retention. Many auto manufacturers claim

satisfaction levels higher than 90%, yet few have repurchase levels of even half that. The

situation is stacked against the business: if customer satisfaction levels are low, there will

be very little retention. However, customer satisfaction levels can be quite high without a

corresponding level of retention. Customers have come to expect satisfaction as part and

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parcel of the general deal, and the fact that they are satisfied doesn't prevent them from

defecting in droves to a competitor who offers something extra.

3. Elasticity level

Elasticity expresses the weight of a purchasing decision- effectively the level of

involvement or indifference. This applies to the customer and the business.

Involvement

The customer's involvement in the category is important: the more important

your product or service is to the customer, the more trouble they have probably taken in

their decision to do business with you, and the more likely they are to stick with what

they have decided. Most customers would be highly involved in the category when

choosing a new car, a new jacket, or a bottle of wine. However, when choosing a new

pair of shoelaces, involvement is not usually high. Businesses dealing in commoditised

products and services cannot expect high involvement and need to earn loyalty in other

ways.

Ambivalence

The customer's level of ambivalence is also important. Few decisions are clear

cut. There are usually advantages and disadvantages to be balanced, and vacillation is

unstable. Again, we see that the more commoditised a product or service, the more

difficult it is to cultivate loyalty. It is only when points of differentiation are introduced

that the customer has a valid reason for consistently preferring one particular supplier.

4. The Marketplace

The marketplace is a key factor in the development of loyalty. The elements closely

involved are:

Opportunity to switch

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If the number of competing suppliers is high and little effort is required to

switch, switching is clearly more likely. Conversely, the more time and effort invested in

the relationship, the more unlikely switching becomes. The level and quality of

competition has a significant effect on how easy it is for a customer to switch from any

one particular supplier. When competitors are offering very similar products at similar

prices, with similar levels of service, some means of useful differentiation has to be

found in order to give customers a reason to be loyal.

Inertia Loyalty

This is the opposite of ease of switching. Most banks enjoy a high level of inertia

loyalty simply because it's often so difficult and time-consuming to change to a new bank

and transfer direct debits and standing orders.

5. Demographics

According to Jan Hofmeyr and Butch Rice, developers of The Conversion Model (which

enables users to segment customers not only by their commitment to staying with a brand

but also to segment non-users by their openness to switching to the brand), more affluent

and better educated customers are less likely to be committed to a specific brand. They

say that the commitment of less affluent consumers to the brands they use is often

unusually strong - possibly because they cannot afford to take the risk of trying a brand

that might not suit them as well. They also suggest that younger consumers are less

committed to brands than older consumers.

Interestingly, these differences carry over into cultural groups as well: they find that

French-speaking Canadians are more likely to be committed to a brand than English-

speaking Canadians, and Afrikaans-speaking South Africans are more likely to be

committed than English-speaking South Africans. In their excellent book, Commitment-

Led Marketing, they show how commitment norms for the most frequently used brand of

beer vary from country to country. At the two extremes we see both Australia and the

UK (58%) and South Africa at 83% - a considerable difference.

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CUSTOMER RETENTION STRATEGIES

1. Welcome the complaints received: The starting point for customer retention

techniques is understand why existing customers are lost. Most lost customers do not

actually complain, and just simply walk away. Analyze those complaints received for

trends in why customer loyalty is lost and then make appropriate changes. Use

appropriately customer satisfaction survey questions to prompt customers for product

& improved service ideas.

2. Instigate loyalty programs: Provide frequent customers with money-off coupons or

other loyalty programs as part of a simple customer retention strategy. The company

will benefit from plenty of repeat purchases and the customers will spread the good

word about the benefits of purchasing from the company. Use online business

systemsto track and monitor the conversion rates of these individual loyalty schemes.

3. Sending out questionnaires and surveys to existing customers: All the best

customer retention strategies require constant feedback from the customer to establish

what is working and what is not working. Surveys, questionnaires and customer

loyalty research are the perfect way of doing this. Incorporate special offers or gifts to

encourage responses.

4. Check for repeat sales often to instil your companys brand: Existing customer

base will be more loyal as they make more purchases.Improve sales performance by

providing newsletters and regular communications to make sure they are informed

ofnew product lines, offers, related products, etc.

5. Reactivate dormant customers:Customers that purchased from a company

previously are more likely to come back and purchase more (just so long as they were

not displeased by the service). Try contacting customers who have not come back in a

while to see if any of the current offers would interest them. Basic customer service

training tips always state that holding onto existing customers is much easier than

gaining new ones.

6. Schedule a frequent communication plan to the customer base: The Companys

communications are fundamental to any customer retention techniques. However, it

has to be planned out. Create a strategy for how often you want to contact existing

customers and decide upon what communication type should be used (e.g. e-mail,

newsletters, etc.).

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7. Provide exceptionalcustomer service: This one is easy! The better the service

provided, the more customers are going to be retained, and the more loyal they will

be. For online systems make sure there are enough customer service operatives

andserver performance monitoring tools to ensure customers have rapid access to the

companys website and customersupport teams.

8. Make a good first impression: The simplest customer retention strategy that can be

implemented straightaway is to make sure that the first contact made with customers

is positive, easy and courteous. This applies whether you are selling online, face-to-

face or door-to-door.

9. Make courtesy top priority with all customer-facing staff:Customers will be lost

rapidly if the staff are not courteous. Instigate training programs for all customer

service staff in good communications, active listening and attentiveness to customer

satisfaction. Make it part of their annualperformance reviewtoo by using different

types ofperformance appraisal methods. These customer retention strategies do cost

money but pay off big-time with the amount of repeat purchases received. A side

benefit is that more staff is likely to enjoy their roles and be more professional and

polite even with their own colleagues.

10. Do regular reviews: Regular reviews are to be done on a scheduled basis to establish

if complaint rates are dropping, what the nature of complaints are, customer

satisfaction levels (i.e. from questionnaires) etc. Always be looking to improve the

level of satisfaction the customer is receiving.

LOYALTY PROGRAMS:

Loyalty programs are structured marketing efforts that reward, and therefore encourage,

loyal buying behaviour which is potentially beneficial to the firm. In marketing generally

and in retailing more specifically, a loyalty card, rewards card, points card, advantage

card, or club card is a plastic or paper card, visually similar to a credit card or debit card,

that identifies the card holder as a member in a loyalty program. Loyalty cards are a

system of the loyalty business model. In the United Kingdom it is typically called a

loyalty card, in Canada a rewards card or a points card, and in the United States either a

discount card, a club card or a rewards card. Cards typically have

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abarcode ormagstripe that can be easily scanned, and some are even chip cards.

Small key ring cards (also known as key tags) which serve as key fobs are often used for

convenience in carrying and ease of access.

By presenting the card, the purchaser is typically entitled to either a discount on the

current purchase, or an allotment of points that can be used for future purchases. Hence,

the card is the visible means of implementing a type of what economists call a two-part

tariff.

BENEFITS OF LOYALTY PROGRAMS

1. Identification of customers (enabling deeper relationship marketing)

2. Reason for more contact with customer.

3. Identification of Customer Behaviour who buys what, when, where how much,

how etc. plus identification of trends.

4. Customer Tie-In

5. Increased sales volume / turnover.

6. Cross Marketing Opportunities (e.g. Financial Services).

7. Customer Satisfaction.

8. Word of Mouth if it is a good deal.

9. Differentiation more appropriate to those who want it.

10. May hide real prices & therefore enable higher prices.

11. Perhaps new customers.

12. Possibility to sell customer data (in certain circumstances).

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CHAPTER 2

RESEARCH METHODOLOGY AND

RESEARCH DESIGN

TITLE OF THE STUDY:

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A study to analyse the effectiveness of XTRAPOWER Fleet Card Loyalty Program in

retention of customers of IndianOil Corporation Ltd., with special reference to Cochin

Office.

INTRODUCTION:

IndianOil Corporation Ltd., (IOCL) was formed in 1964 as the result of merger of

IndianOil Corporation Ltd. and Indian Refineries Ltd. IOCL is the 21st largest petroleum

company in the world and the ace petroleum trading company among the national oil

companies in the Asia- Pacific region. IndianOil Corporation is a group of companies

and includes Lanka IOC Ltd., IndianOil (Mauritius) Ltd., IBP Co. Ltd., CPCL, BRPL

and IndianOil Technologies Ltd. The study focuses on the retention of the customers ofIOC. Customer Retention is the activity that a selling organisation undertakes in order

to reduce customer defections. Successful retention starts with the first contact an

organisation has with a customer and continues throughout the lifetime of the

relationship. Thus it is necessary to maintain good customer relations for the effective

retention of customers.

STATEMENT OF THE PROBLEM:

IndianOil XTRAPOWER Fleet Card Loyalty Program is a Smart Card based Fleet Card

Program, which facilitates cashless purchase of fuel and lubes from designated outlets of

IndianOil through flexible prepaid and credit facilities. The study focuses on analysing

the effectiveness of this XTRAPOWER Fleet Card Loyalty Program in retaining its

customers in the company.

SIGNIFICANCE OF THE STUDY:

1. To study the variety of benefits offered by the program.

2. To study if the customers are satisfied over the various features and benefits offered by

the XTRAPOWER Fleet Card Loyalty Program.

3. The study would help the company to modify or create new benefits for its existing

and new customers.

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4. The study will help in identifying the effectiveness of the program.

5. The study helps to identify the needs and aspirations of the customers over the

program.

OBJECTIVES:

GENERAL OBJECTIVE:

To analyse the effectiveness of the XTRAPOWER Fleet Card Loyalty Program in the

retention of its customers in IndianOil Corporation Ltd., Cochin.

SPECIFIC OBJECTIVES:

a) To study about the features of XTRAPOWER Fleet Card Loyalty Program.

b) To analyse the quality of service offered to customers.

c) To analyse the effectiveness of the banking facilities available to customers.

d) To study about the benefits available to customers.

e) To analyse the further improvements suggested by the customers.

RESEARCH DESIGN:

The study follows Descriptive research design.

TYPE OF RESEARCH:

The study follows explanatory research.

DATA COLLECTION:

Primary data: Questionnaires

Secondary data: Internet and Company Reports

POPULATION:

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The floating population of Fleet Operators in Ernakulam.

SAMPLE SIZE:

100 respondents (Fleet Operators)

TOOLS FOR DATA COLLECTION:

The primary data has been collected using questionnaires. Convenience sampling has

been made use of for the distribution of questionnaires. Internet and Company Reports

have been made use of for the collection of Secondary data.

STATISTICAL TOOLS USED FOR DATA ANALYSIS:

The statistical tools used for analysing the data are Percentages, Averages and Bar

Diagrams.

LIMITATIONS:

1. Some of the respondents were not co-operative.

2. Another limitation is that the geographical area was confined only to Ernakulam.

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CHAPTER 3

DATA ANALYSIS

Table 3.1 Showing if the respondent is a single user/multi user.

No. of respondents Percentage (%)

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Single user 35 35

Multi user 65 65

Total 100 100

Figure 3.1 - Showing if the respondent is a single user/multi user.

Inference - From the above figure we conclude that 35% of the respondents are

single users and 65% of the respondents are multi users.

Table 3.2 - Showing the number of vehicles owned by the respondents.

No. of vehicles No. of people Percentage (%)

1 5 50 50

5 10 19 19

10 15 16 16

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15 20 15 15

Total 100 100

Figure 3.2 Showing the number of vehicles owned by the respondents.

Inference From the above figure we can conclude that 50% of the respondents

have 1-5 vehicles, 19% have 5 10 vehicles, 16% have 10 15 vehicles and 15%

have 15 20 vehicles.

Table 3.3 Showing the number of respondents who are aware of the

XTRAPOWER Loyalty Program.

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Figure 3.3 -

Showing

the number of respondents who are aware of the

XTRAPOWER Loyalty Program

Inference From the above figure we can conclude that 74% of the respondents

are aware of the XTRAPOWER Loyalty Program and 26% of respondents are not

aware.

43

No. of people Percentage (%)

Yes 74 74

No 26 26

Total 100 100


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Table 3.4 Showing the number of respondents who are members of the

XTRAPOWER Fleet Card Loyalty Program.

No. of respondents Percentage (%)Yes 71 96

No 3 4

Total 74 100

Figure 3.4 - Showing the number of respondents who are members of the


Inference From the above figure we can conclude that 96% of the respondents aremembers of the XTRAPOWER Fleet Card Loyalty Program and 4% of the

respondents are not members.

Table 3.5 Showing how the respondents came to know about the

XTRAPOWER Fleet Card Program.

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Media 19 27

Retail Outlets 31 44

Hoardings 8 11Advertisements 13 18

Total 71 100

Figure 3.5 Showing how the respondents came to know about the

XTRAPOWER Fleet Card Program.

Inference - From the above figure we can conclude that 27% of respondents came

to know about the Fleet Card through Media, 44% through Retail Outlets, 11%

through Hoardings and the remaining 18% through Advertisements.

Table 3.6 Showing how the respondents rate the benefit of Cashless fuelling.


Excellent 29 41

Very Good 31 44

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Satisfactory 11 15

Fair 0 0

Poor 0 0

Total 71 100

Figure 3.6 Showing how the respondents rate the benefit of Cashless fuelling.

Inference From the above figure we can conclude that 41% of respondents rate it

as Excellent, 44% rate it as Very good, 15% rate it as Satisfactory and none of the

respondents have rated it as Fair and Poor.

Table 3.7 Showing how respondents rate the Reward points and

consequent redemption of points for free diesel.


Excellent 35 49

Very Good 27 38

Satisfactory 8 11Fair 1 2

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Poor 0 0

Total 71 100

Figure 3.7 Showing how respondents rate the Reward points and

consequent redemption of points for free diesel.


as Excellent, 38% rate it as Very good, 11% rate it as Satisfactory, 2% rate it as

Fair and none have rate it as Poor.

Table 3.8 Showing the respondents rating for redemption of

Reward points for gift items.


Excellent 25 35

Very Good 33 46

Satisfactory 12 17

Fair 0 0

Poor 1 2

Total 71 100

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Figure 3.8 Showing the respondents rating for redemption of

Reward points for gift items.


as Excellent, 46% rate it as Very good, 17% rate it as Satisfactory, none have rate it

as Fair and 2% have rated it as Poor.

Table 3.9 Showing how respondents rate the Insurance coverage provided.

No. of respondents Percentage (%)Excellent 19 27

Very Good 28 39

Satisfactory 19 27

Fair 5 7

Poor 0 0

Total 71 100

Figure 3.9 Showing how respondents rate the Insurance coverage provided.

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Fair and none have rated it as Poor.

Table 3.10 Showing how respondents rate the discount availed

on the purchase of JK Tyres.


Excellent 22 31

Very Good 25 35

Satisfactory 18 25

Fair 6 9

Poor 0 0Total 71 100

Figure 3.10 Showing how respondents rate the discount availed

on the purchase of JK Tyres.

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Table 3.11 Showing how respondents rate the Prepaid options provided.


Excellent 17 24

Very Good 30 42

Satisfactory 19 27

Fair 5 7

Poor 0 0

Total 71 100

Figure 3.11 Showing how respondents rate the Prepaid options provided.

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Table 3.12 Showing how respondents rate the Credit options provided.


Excellent 20 28

Very Good 27 38

Satisfactory 19 27

Fair 5 7

Poor 0 0

Total 71 100

Table 3.12 Showing how respondents rate the Credit options provided.

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Table 3.13 Showing how respondents rate the Real Time Gross Settlement

mode of payment through HDFC Bank.


Excellent 12 17

Very Good 29 41

Satisfactory 25 35

Fair 5 7Poor 0 0

Total 71 100

Figure 3.13 Showing how respondents rate the Real Time Gross Settlement

mode of payment through HDFC Bank.

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Table 3.14 Showing how respondents rate the facility of

Cash deposit at Retail Outlets.


Excellent 19 27

Very Good 28 39

Satisfactory 20 28

Fair 4 6

Poor 0 0

Total 71 100

Figure 3.14 Showing how respondents rate the facility of

Cash deposit at Retail Outlets.

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Table 3.15 Showing how respondents rate the receipt of monthly statement

of diesel consumption for the vehicles.


Excellent 25 35

Very Good 26 37

Satisfactory 16 22

Fair 4 6

Poor 0 0

Total 71 100

Figure 3.15 Showing how respondents rate the receipt of monthly statement

of diesel consumption for the vehicles.

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Table 3.16 Showing how respondents rate the CONVENIENCE

provided by the XTRAPOWER Fleet Card.


Excellent 21 30

Very Good 31 43

Satisfactory 16 23

Fair 3 4

Poor 0 0

Total 71 100

Figure 3.16 Showing how respondents rate the CONVENIENCE


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Table 3.17 Showing how respondents rate the SECURITY provided by the



Excellent 24 33

Very Good 29 40

Satisfactory 14 20Fair 4 7

Poor 0 0

Total 71 100

Figure 3.17 Showing how respondents rate the SECURITY provided by the


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Inference From the above figure we can conclude that 33% of respondents rate itas Excellent, 40% rate it as Very good, 20% rate it as Satisfactory, 7% rate it as


Table 3.18 Showing how respondents rate the EASE OF USAGE

of XTRAPOWER Fleet Card.


Excellent 11 15

Very Good 25 35

Satisfactory 29 41

Fair 4 6

Poor 2 3

Total 71 100

Figure 3.18 Showing how respondents rate the EASE OF USAGE

of XTRAPOWER Fleet Card.

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Fair and 3% rate it as Poor.

Table 3.19 Showing how respondents rate the CONTROL provided

by the XTRAPOWER Fleet Card.


Excellent 11 15

Very Good 22 31

Satisfactory 33 47

Fair 3 4

Poor 2 3

Total 71 100

Figure 3.19 Showing how respondents rate the CONTROL provided

by the XTRAPOWER Fleet Card.

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Table 3.20 Showing how respondents rate the REWARDS



Excellent 30 42

Very Good 19 27

Satisfactory 16 23

Fair 5 7

Poor 1 1

Total 71 100

Figure 3.20 Showing how respondents rate the REWARDS


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Table 3.21 Showing how respondents rate the services


60


Excellent 19 27

Very Good 28 39

Satisfactory 19 27

Fair 5 7

Poor 0 0

Total 71 100


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Figure 3.21 Showing how respondents rate the services





Table 3.22 Showing how respondents rate the time taken for

swiping the cards by the operators at the petrol bunk.

No. of respondents Percentage (%)Excellent 13 18

Very Good 25 35

Satisfactory 26 37

Fair 7 10

Poor 0 0

Total 71 100

Figure 3.22 Showing how respondents rate the time taken for

swiping the cards by the operators at the petrol bunk.

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Table 3.23 Showing how respondents rate the XTRAPOWER Fleet Card when

compared to other competitors Loyalty Programs.


Excellent 22 31

Very Good 32 45

Satisfactory 13 18

Fair 4 6

Poor 0 0

Total 71 100

Table 3.23 Showing how respondents rate the XTRAPOWER Fleet Card when

compared to other competitors Loyalty Programs.

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Table 3.24 Showing how respondents rate the overall experience with



Excellent 13 18

Very Good 34 48

Satisfactory 21 30

Fair 3 4

Poor 0 0

Total 71 100

Figure 3.24 Showing how respondents rate the overall experience with


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as Excellent, 48% rate it as Very good, 30% rate it as Satisfactory, 4% rate it asFair and none have rated it as Poor.

CHAPTER 4

FINDINGS, SUGGESTIONS AND

CONCLUSIONS

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FINDINGS

1. It was found that a majority of the respondents are multi users.

2. Majority of respondents own about 1 5 vehicles.

3. It was found that at least most of the respondents are aware of the XTRAPOWER

Fleet Card Program.

4. Similarly most of the respondents who are aware of the XTRAPOWER Loyalty

Program are also members of the program.

5. Most of the members of the program came to know about the program from various

Retail outlets.

6. A majority of the fleet card users completely support the idea of Cashless fuelling as

it is very much convenient.

7. It was also found that the respondents are happy and satisfied with the Reward points

they receive on swiping their cards and also the subsequent redemption of gift items

with these Reward points.

8. On an average the respondents find the Insurance Coverage only satisfactory.

9. It was found that the respondents are mostly satisfied with the Prepaid and Credit

options provided.

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10. On the whole the respondents are very satisfied with the banking facilities provided

to Fleet Card holders.

11. The ease of usage and control over the XTRAPOWER Fleet Card seems to be only

satisfactory.

12. The convenience provided by the Fleet Card seems to be very good as per the

respondents views.

13. The Reward System provided by the XTRAPOWER Fleet Card has been commented

excellent.

SUGGESTIONS

1. The fleet cards can be utilized to the maximum only when there are more retail outlets

having fleet card facilities.

2. Additional banks can be included for carrying out RTGS mode of payment as there are

instances when the HDFC Bank portal is shut down.

3. There should be more promotional activities to make the fleet operators aware of the


4. The network problem which is beyond the control of anyone is affecting the

XTRAPOWER Loyalty Program. However the dealers of retail outlets are officials of

IOCL are helping the customers by giving diesel without swiping the cards under such

critical situations and thereafter the cards will be supplied.

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QUESTIONNAIRE

1. Name:

2. Age:

3. Location:

4. Educational Qualification:

5. Are you a single user / multi user?

6. How many vehicles do you own?

1-5 5-10 10-15 15-20

7. Are you aware of the XTRAPOWER Loyalty Program?

Yes No

8. If yes, are you a member of the XTRAPOWER Fleet Card Program?

Yes No

9. How did you come to know about the XTRAPOWER Fleet Card?

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Media Retail outlets Hoardings Advertisements

10. How do you rate the various benefits of the XTRAPOWER Fleet Card?

I) Cashless fueling i.e. carry only the card with you by loading money

on the card.

Excellent Very good Satisfactory Fair Poor

II) Reward points and consequent redemption of points for free diesel

at the petrol bunk.


III) Redemption of Reward points for gift items.

Excellent Very good Satisfactory Fair PoorIV) Insurance coverage.


V) 15% discount on purchase of JK Tyres.


11. How do you rate the banking facilities offered by this Fleet card?

I) Prepaid options


II) Credit options


III) Real Time Gross Settlement mode of payment through HDFC Bank.


IV) Cash deposit at the Retail outlet.


V) Receipt of monthly statement for diesel consumption for the vehicles.


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12. How would you rate the features of XTRAPOWER Fleet card?

I) Convenience


II) Security


III) Ease of usage


IV) Control


V) Rewards


13. How do you feel the services at the petrol bunk?


14. The time taken for swiping the cards by the operators at the Petrol

Bunk for fuelling.


15. How do you feel about the IOCL XTRAPOWER Fleet Card Program

compared to other competitors Loyalty Programs?


16. How would you rate the overall experience with XTRAPOWER Fleet Card

Program?


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69


70/70


indianoil corporation

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