Saachi Goyal from Kolkata, a regular customer at Jhoomar, a boutique, registered her number with the shop post its association with Loyalie, a loyalty rewards-based startup. On her second visit after the registration, she got a free piece of clothing.
“I have been visiting the store for some time now, but small boutiques did not offer loyalty points or customer relationship management programmes. While their service has always been good, as I visit the shop more, I have more offers after their association with Loyalie and this prompts me to increase my purchase,” she added.
Loyalie, which has tied up with retail stores, restaurants, salons offers rewards to customers as their purchases from their outlets increase. “Paper vouchers and points are not always utilised. However, through this scheme, there are stamps made for every visit and depending on the number of visits, offers are given, depending on the customer’s buying pattern,” said Akhil Saraf, co-founder, Loyalie.
The stores in turn see an increase in customer retention and footfall. Startups working with them help in hyperlocal marketing and create targeted campaigns depending on the customer base. Snapbizz, which works in digitizing the operations of kirana stores, also rolls out packaged offers going by their customers’ purchase pattern.
“Extra promotions, offers and discounts are channelled through the retail stores. Since offers are available on the app as well as SMS, the customers react more to the offers as the process is hassle-free,” said Prem Kumar, founder, Snapbizz. The Ratan Tata-funded company has tied up with over 1500 kirana stores so far and is now adding 300 to 500 stores per month on its platform.
Sunil, owner of Fresh Market at Bengaluru, said that there has been a 15% increase in the footfall and the sale, post their association with Snapbizz. “It becomes easy to know what my customer needs, track purchase history and give out customised offers accordingly, because of which, the customer retention has also increased, “he added.
Some stores offer cash back at the end of the month, to get rid of the month-end woes of the customers. Yeldi, a NFC startup, offers a loyalty card to those who purchase at the retail stores in a particular area. The customers can load cash at the start of the month and depending on their purchases, they get cash back that can be used at the end of the month. Retail stores have increased traffic because of the offers.
“We have chosen residential clusters in the city so that we can reach out to more customers. Those who get the card have to purchase accordingly to get more cash loaded in their card at the end of the month. This card facilitates purchases on multiple stores, as opposed to the loyalty cards in branded stores,” said Arjuna Murthy Ra,founder, Yeldi. Over 120 merchants and over 1000 customers are currently using the product.