Tuesday 13 March 2007

Loyalty programmes there and here

I’ve been reading and thinking about loyalty programmes for a while now, especially since we decided to go the programme way, and comparing the situation in White Men’s Lands to that here. Three things stand out in retail:

1. LARGE BUDGETS: Before loyalty programmes came, retailers there spend a great deal of money on non-targeted communication. They’d send out flyers every week, issue press ads all the time, and advertise heavily on TV during festivals. The marketing departments had substantial budgets. The first task of the loyalty programmes was ensuring these budgets were spent better.

Retailers in our country don’t come anywhere near in ad spends. So the programme funds come out of profits instead of existing budgets. This is a huge problem.

2. LARGE NUMBERS: There is not one FMCG (e.g., groceries, medicines, video rental) retail chain in India whose number of stores runs into triple figures. Only a few reach double figures, though none cross 50. (Brands like Bata and Titan have large numbers of stores, but few of these are big. They are not into fast moving items either.) In WML, many chains have many stores. The programmes’ fixed costs are sort of spread out.

Also, with millions of members, and tens of millions of transactions, involving thousands of SKUs (even our Food Bazaars don’t seem to have a thousand SKUs) they can slice and dice data in many meaningful ways. We can’t. The segments we get are so small that almost all observations are unreliable. (That is not to say that the data collected here isn’t an enormous improvement over flying blind.)

Thirdly, retailers there can combine their customers’ data with (demographic and credit rating) data from other sources to enrich their databases. We can’t.

Fourth, they can do nationwide tie-ups with other national chains. Manufacturers are eager to be useful too, because each deal takes care of tons of sales.

3. LARGE TEAMS: In all the cases I’ve read about, programmes there are largely managed and maintained by large in-house teams. External agencies are involved as consultants and for creative. Here we have only a CRM or DM manager, if that.

Consumer habits there may be poles apart from ours, but that’s not apparent in the material with me.

What do you think?

4 comments:

oakleyses said...

longchamp outlet, cheap oakley sunglasses, chanel handbags, oakley sunglasses, replica watches, christian louboutin outlet, louis vuitton, jordan shoes, nike air max, louboutin pas cher, longchamp pas cher, burberry pas cher, prada outlet, gucci handbags, christian louboutin shoes, polo outlet, replica watches, nike free run, tiffany jewelry, louis vuitton outlet, christian louboutin uk, prada handbags, nike free, oakley sunglasses, ray ban sunglasses, christian louboutin, louis vuitton, jordan pas cher, ugg boots, ray ban sunglasses, michael kors pas cher, longchamp outlet, air max, polo ralph lauren outlet online, oakley sunglasses, sac longchamp pas cher, nike air max, nike outlet, tory burch outlet, oakley sunglasses wholesale, kate spade outlet, uggs on sale, louis vuitton outlet, louis vuitton outlet, ray ban sunglasses, longchamp outlet, nike roshe, polo ralph lauren, tiffany and co

oakleyses said...

michael kors outlet online, ray ban uk, michael kors outlet online, kate spade, michael kors outlet, michael kors outlet, polo lacoste, nike air max, nike free uk, hogan outlet, nike air max uk, true religion outlet, guess pas cher, michael kors outlet online, nike roshe run uk, oakley pas cher, uggs outlet, hollister pas cher, vans pas cher, abercrombie and fitch uk, hollister uk, nike tn, true religion jeans, sac vanessa bruno, true religion outlet, true religion outlet, converse pas cher, nike blazer pas cher, mulberry uk, burberry outlet, lululemon canada, nike air max uk, sac hermes, michael kors, ray ban pas cher, north face uk, michael kors outlet online, ralph lauren uk, nike air force, north face, coach outlet store online, uggs outlet, michael kors, new balance, replica handbags, timberland pas cher, coach outlet, burberry handbags, coach purses

oakleyses said...

hollister clothing, converse outlet, vans, chi flat iron, timberland boots, north face outlet, mont blanc pens, abercrombie and fitch, ray ban, nike air max, p90x workout, hollister, nike huaraches, beats by dre, lululemon, asics running shoes, nike trainers uk, babyliss, wedding dresses, vans outlet, gucci, mcm handbags, mac cosmetics, herve leger, lancel, oakley, reebok outlet, nike air max, insanity workout, iphone cases, converse, bottega veneta, longchamp uk, instyler, new balance shoes, nfl jerseys, north face outlet, celine handbags, louboutin, jimmy choo outlet, valentino shoes, soccer jerseys, ferragamo shoes, ghd hair, hermes belt, ralph lauren, hollister, soccer shoes, nike roshe run, baseball bats

oakleyses said...

hollister, wedding dresses, louis vuitton, moncler uk, moncler, supra shoes, canada goose outlet, canada goose outlet, thomas sabo, ugg,uggs,uggs canada, canada goose, moncler, louis vuitton, ugg, juicy couture outlet, ugg pas cher, montre pas cher, swarovski, moncler, moncler, karen millen uk, louis vuitton, canada goose uk, doudoune moncler, links of london, canada goose, ugg,ugg australia,ugg italia, louis vuitton, marc jacobs, moncler outlet, swarovski crystal, pandora jewelry, coach outlet, canada goose outlet, canada goose jackets, replica watches, juicy couture outlet, ugg uk, louis vuitton, canada goose, pandora uk, toms shoes, pandora charms, moncler outlet, pandora jewelry