India is a market that thrives on validation.

While the psychology behind this can be dated back to the market liberalisation, there is also a pure play of numbers here. 

This validation-enabled customer behaviour has been the foundation of the numerous loyalty programs run by multiple businesses to solidify their market presence. 

So much so that the loyalty market in India is expected to grow by 14.2% annually to reach US$4,795.6 million in 2023.

The projection for the same Loyalty Programs Market is sitting at a comfortable US$ 3963.6 million by 2026.

A market for validation.

That’s what these numbers indicate.

While there is a market for loyalty, let’s briefly talk about the need. 

Deloitte’s retail survey states, “Businesses with loyalty programs are 88% more profitable on average than their competitors who do not.”

The promise of a transformative customer experience driven by solid profit margins is enough for you and your business to deploy a loyalty program in-house. 

Some of the best examples are listed below. 

Digital Loyalty Programs

Amongst these traditional loyalty programs, a new wave of digital loyalty programs is fast replacing conventional loyalty programs due to their wide range of benefits. They are fast, efficient, cost-effective, and eco-friendly, and they are extremely useful in the digital age, where most customers would like to engage with loyalty programs using their smartphones, as confirmed by a CodeBroker study.

Few of the preferred loyalty programs in this space are

PAYBACK [now Zillion]

PAYBACK is among India’s largest multi-brand digital loyalty programs, with over 100 partner brands, including affiliates such as Amazon, Flipkart, Myntra, and more. The unique coalition digital loyalty program is designed to engage members and provide their reward points on online shopping, vouchers, coupons, and digital payments.

The portfolio of partner brands covers more than 80% of popular consumer spending areas. Its partners are leading brands in various sectors, including entertainment, financial services, hospitality, payment cards, retail, travel, and more. With such a broad range of partners, the program is accepted at more than 12,000 Points of Sale (POS) across over 100 cities.

Merchant payments and financial services provider BharatPe has recently acquired the multi-brand loyalty platform PAYBACK India to help its 6 million offline merchants roll out rewards and loyalty programs for customers. BharatPe Group was also instrumental in rebranding PAYBACK India, the country’s largest multi-brand loyalty program, to Zillion. 

CRED

CRED is a members-only credit card bill payment platform that rewards its members for clearing their credit card bills on time by giving them access to exclusive rewards and experiences from premier brands. These are the features that are largely contributing to its popularity:

CRED RentPay allows you to pay your monthly rent with their credit cards directly from the CRED app. With the option of paying rent on credit, you can avail of benefits such as free cash flow, interest-free credit period, reward points on credit card loyalty programs, and a CRED coin for every rupee of the bill that they pay back on CRED. You can also use your CRED coins to get monthly cashbacks on the rent paid.

CRED Store allows CRED members to shop through their in-app e-commerce, offering a selection of handpicked, curated products and travel experiences to luxurious destinations across India and the world at member-exclusive prices. The app has over 1,800+ brands, with 500+ active at any point, including popular urban, premium, and DTC brands such as Starbucks, Boat, Noise, TMC, Mamaearth, Lifelong, Beardo, Ustraa, Bombay Trooper, Neemans, Jimmy’s Cocktails, Elementary, Whole Truth, Sleepycat, and many more.

CRED Travel Store has added more exclusive destinations for you to ‘buy now and travel later’, like luxurious stays at Ayatana Coorg, The Serai, Hard Rock Goa, Centara Ras Fushi Maldives and Kempinski Seychelles. The ‘buy now, and travel later’ option enables future travels for members when they can venture out safely. CRED has also associated with Mastercard to provide members with an exclusive range of rewards and premium packages across hotels such as Taj, ITC and Lalit.

CRED Pay is a new payment experience for members on select merchant platforms. It offers you a safe and delightful one-click checkout experience using credit cards already saved on CRED. By using CRED Coins during checkout, members can avail discounts on an array of products from over 300 beloved brands like Dineout, Ixigo, The Man Company, Zoomin, Neemans and Bombay Shaving Co., and others.

KOO

Koo, a social media platform, has introduced a loyalty program that rewards its users daily based on their engagement with the platform. Koo users earn Koo coins daily by actively participating in the app and referring their family and friends. The Koo coins program, which allows users to redeem coins for offers from a series of brands in India, was initially introduced as an experiment in July 2022. However, due to its success, the program has become a structured rewards program that recognises and rewards users for their consistent engagement. While it is still in beta in India, it will soon be expanded to all languages and rolled out worldwide.

Berger Paints’ eSambandh

Berger Paints’ eSambandh loyalty program is a digital loyalty program for its contractors. The digital reward program consists of a wide range of benefits and incentives. The program provides high price transparency and gains contractors’ confidence.

The paint maker provides additional discounts and benefits as well as credit facilities. The B2B loyalty program also enables contractors to order various paints, coatings, and paint tools and deliver them to their preferred location.

Point-based Programs

Points programs are among the most popular types of customer loyalty programs. They are helpful because points are easy to earn and easy to redeem. Customers can redeem points for credit toward their next purchase, discounted services or giveaways. Customers can track points programs with a loyalty card, online account or mobile app. 

Because many brands employ a points programme, it’s an easily recognisable format for customers. They understand how to take advantage of them; it is a seamless experience.

Myntra Insider

Myntra Insider is a loyalty program offered by Myntra that caters to frequent Myntra users and offers them exclusive privileges and benefits.

Customers can join Myntra Insider by earning Insider Points for shopping, writing reviews, and participating in promotional activities. Once enrolled, members can avail of exclusive benefits such as free delivery, early access to sales, and priority customer support. 

The program also offers members various partner benefits such as discounts on food and beverages, travel, and more.

Shoppers Stop First Citizen

Shoppers Stop First Citizen is a loyalty program offered by Shoppers Stop that caters to frequent Shoppers Stop customers and offers them exclusive privileges and benefits.

Customers can become Shoppers Stop First Citizen members by paying a one-time membership fee and then earning reward points for every purchase made at Shoppers Stop and its partner brands. 

The earned points can be redeemed for rewards such as shopping vouchers, gifts, and more.

Shoppers Stop First Citizen also offers its members various benefits, such as free home delivery, exclusive discounts and offers, and early access to sales and promotions. The program also provides members with personalised styling services, which helps them discover new products and styles that suit their tastes.

Tiered Program

A tiered program starts with a points program that allows customers to earn rewards with every purchase. Once you complete one level of spending, customers can unlock a new level that gives them access to more significant benefits and perks.

Tiered programs can also align with the business’s brand marketing strategy. You could have a tier of “diamond level” clients to create an element of exclusivity. Customers at this level could earn exclusive pricing for your most expensive products and services. This will motivate your customers in lower tiers to make an effort to get to the next level of spending. The more exclusive the reward, the greater the customer appeal. This program is used in e-commerce and especially in the travel industry. 

Club Vistara

Club Vistara is the loyalty program of Vistara Airlines, a joint venture between Tata Sons and Singapore Airlines. Club Vistara has three tiers of membership: Club Vistara, Silver, and Gold. Each tier offers additional benefits such as bonus points, lounge access, and priority check-in and boarding. 

The program allows passengers to earn points for flights with Vistara and partner airlines such as Singapore Airlines, SilkAir, and Air Canada. Members can also earn points by making purchases with co-branded credit cards and through hotel bookings.

Members can then redeem their points for flights, upgrades, and other rewards such as hotel stays, car rentals, and shopping vouchers.

Paid Programs

One of the most straightforward rewards programs runs on customers paying a monthly or annual fee to join, be a part and avail of the VIP Member Club benefits. Built purely on a customer base, paid programs work best for legacy companies who want to nurture their repeat customers further. 

Tanishq Golden Harvest 

Tanishq, a renowned jewellery brand in India, offers a loyalty program called “Golden Harvest” to reward its customers for their continued patronage. As a Golden Harvest member, you start saving for future jewellery purchases. You can deposit a fixed amount each month over a set period of time (usually 10 months). The amount you deposit is called the Monthly Installment Amount (MIA).

Monthly Installment Amount (MIA): The MIA you choose determines the level of savings and the value of the rewards you receive at the end of your tenure. The MIA options are usually predetermined and vary depending on the program terms and the value of the jewellery you wish to purchase.

The Golden Harvest program typically has a fixed tenure of 10 months, during which you need to make monthly deposits. At the end of the tenure, Tanishq will offer you rewards in the form of a special discount on the total value of the jewellery you wish to purchase.

Mission-driven Programs

Not all rewards programs focus on tiers and discount codes. If your company has a strong social mission, try a customer loyalty program with a cause.

Aligning with a mission or cause allows you to build customer engagement and drive repeat purchases through your shared values. These programs can be more effective when you partner with a non-profit organisation with a strong connection to the company’s mission.

Shiksha

‍Shiksha is a CSR program by P&G. It’s an essential part of the global philanthropic program Live, Learn and Thrive. P&G Shiksha was launched in 2005 by P&G India as its flagship CSR program. They are aimed at building schools and upgrading the infrastructure of existing schools. Over the years, they’ve aligned themselves to the emerging needs in the education sector of underprivileged children. 

P&G brands like Ariel, Tide, Whisper, Pampers, Vicks, Pantene, Heads & Shoulders, Gillette, Oral B & Ambipur support the P&G Shiksha initiative. So, if you, as a consumer, have bought a product from these in the past, you’ve already supported P&G Shiksha, making it the most effective model of a mission-driven loyalty program.

The Next Phase

As the landscape of loyalty programs continues to evolve, Indian brands serve as a source of inspiration, showcasing the tremendous impact that customer-centric strategies can have on business success.

Speaking of the next phase, purely from a demographic perspective, many businesses are trying to crack the code of the new generation of customers with unique preferences and expectations regarding brand loyalty. 

The new generation of customers doesn’t value traditional rewards. They look beyond discounts. They crave authenticity, social responsibility, and unique experiences. By being flexible, offering personalisation, aligning with their values, and incorporating gamification, businesses can create loyalty programs that capture these next-gen customers’ attention and transform them into brand evangelists.

For businesses looking to solve for this next generation of customer base, a solution like Decentro is handy. Interestingly, Decentro’s Ledgers APIs have been instrumental in solving multiple use cases for loyalty programs beyond the traditional sphere of balancing the books.

If you want to see what setting up a loyalty program with us would look like, hop on the link – Here.  

Additionally, if you want to solve a guided loyalty program use case, please drop us a line. 

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