Monday, October 29, 2012

Loyalty Programs - The Game Changer

Copyright (c) 2012 Swaroop Venkata

When I started my brand new car showroom, the first thought that crossed my mind was - How do I compete against other showrooms already in existence? I put all my efforts into putting together a strategy which would win me customers and make my showroom the best in the city. The first major advantage I had was my product - the car company, the brand that inspired me to open up my venture. The Brand loyalty that this company had managed to create was unprecedented and I chose to capitalize on this major advantage. To leverage this factor further and to get more customers, I decided to introduce some unique Customer loyalty programs. I chalked out two programs:

1) Customer referral & loyalty program: As you will understand, a car is not a commodity that one purchases every weekend. Hence, building a loyalty program for such a category required a different thought process from regular programs. I decided to reward existing customers with bonus points for every new customer they introduced to us and additional bonus points if the customer purchased a car from us. This has worked well for me as I have my existing customers bringing in more business for me by word of mouth publicity. In addition, every time they serviced their car at our station, I would throw in additional points.

2) Employee referral program: I have always believed that employees are the basic foundation on which a business empire is built. This foundation must be strong for the business to flourish. To make this foundation strong, the employees must be kept happy. You must be able to bring a smile on their face before expecting them to bring smiles on your customer's faces. To this effect, I introduced a referral program for the employees. If they brought in a new customer who would purchase from us, a percentage of the sale was presented to them as bonus. This offer was open to all categories of employees. My employees took to this program gladly and made a grand success of this program.

However, the most important factor that brought in my customers every time was the impeccable service that each of my employees offered them.

Also, simply implementing loyalty programs does not help; Data analytics play a key role in ensuring the success of your ideas. Data analysis is a method of understanding the data available to pinpoint useful information which would support in the decision making process. In my case, this process helped in identifying patterns and putting in the correct marketing strategies to promote the right kind of car to the correct segment of customers.

Today, I can proudly say that I have opened up 5 additional showrooms across the city and I am one of the top most dealers for the car company. I owe this success to my employees and to my customers.

HCRM Services has introduced some unique Customer loyalty programs. They consist of
1) Customer referral & loyalty program
2) Employee referral program
For further information check

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