CRM Program in India, ITC

1. Customer loyalty programs in ITC LTD, INDIA By Amogh Upadhyay

2. Introduction Vision Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company’s stakeholders. Mission To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.

3. Introduction Information Type: Public Industry: Conglomerate Founded: 24thAug 1910 Headquarters: Kolkata, India Employees: 30,000 Revenue: US$ 6 billion (09) Core Values Trusteeship Customer needs Respect for the people Excellence Innovation Nation Orientation

4. Brands Portfolio of ITC LTD

5. Customer loyalty programs @ ITC LTD

6. Wills Lifestyle Positioning as high end luxury brand Few retailers that provide any sort of loyalty program in this segment Benefits to members: No question asked return policy for up to 2 years Know your style Customized service Smart card (no points system) Previews of season launch collection 3 days sale period year marked just for “Club Wills” members. Invitation to the India Fashion week Interaction with the Top designers

7. luxury palaces, hotels and resorts (ITC luxury hotels, Sheraton hotels, Welcom Hotels, Fortune Hotels, Heritage City Hotels) Positioning: high end luxury hotels Most comprehensive Customer loyalty Program in the country No competitors in the customer loyalty program of this scale Three tiered: Silver, Gold and Select Gold

8. Benefits to the members Silver: earning of stars @3% of your total 'Eligible Charges' earning of Stars on restaurant usage even as a non-resident guest (on a minimum eligible bill amount of Rs. 1000) Gift Voucher worth Rs. 500 on completion of your 4th stay WelcomAward Gold membership* on completion of 8 stays WelcomAward Gold Select membership* on completion of 16 stays

9. Gold Earning of Stars @4.5% of total 'Eligible Charges' Personalized Welcomkey Extended check-out facility till 4 p.m. on availability No extra charge on room for accompanying spouse earning of Stars on restaurant usage even as a non-resident guest (on a minimum eligible bill amount of Rs. 1000) 50% off on Suites on weekends (Friday / Saturday) Gift Voucher worth Rs. 500 on completion of 4th stay Suite Upgrade Voucher on completion of 8th stay Complimentary Weekend Night Voucher on completion of 12th stay WelcomAward Gold Select membership* on completion of 16th stay

10. Select Gold Priority on your room reservations made with a 72-hours notice of arrival Access to the exclusive Towers Club, even as a non-resident guest Complimentary upgrade to our Best Rooms, including Standard Suites, on availability In-room check-in Complimentary in-room Welcome Amenity Complimentary in-room Internet Access (HSIA) @ 256 kbps tier On demand, complimentary in-room service of Tea/Coffee throughout your stay.

11. Rewards Exotic holidays Travel privileges Fine dining Wills Lifestyle Kitchens of India Hidesign gift vouchers Free fly faster

12. Evaluation of Perceived value: FandosRoig et al. (2009) Monetary benefits: sale, discounts (functional) Social benefits: preference, personal invite to national events, pride attached (emotional) Sacrifices made: nil Value: customized service (functional), monetary and social benefits

13. Evaluation of Perceived value: FandosRoig et al. (2009) Monetary benefits: gift vouchers, discounts, complementary stay, tours and travel offers, discounts on other brands (functional) Social benefits: high social class, preference, customized services (emotional) Sacrifice: premium price Value: inter brand, status

14. FandosRoig et al. (2009) Satisfaction: Functional + emotional + social value If there would be satisfaction there would be intentional loyalty because of which there would be behavioral loyalty

15. Wagner etal (2009) What happens when a customer in a hierarchical loyalty program is ‘demoted’ by the company? Not applicable to “ClubWills” “WelcomAward”

16. Wagner (2009) “welcomaward” 3 tired (Silver, Gold, Gold Select) Getting into the program is easy No demotion The customer retains the award level which he/she has achieved Hence no point of customer negative loyalty intentions The perception benefits which the customer will receive is still intact. The only thing they have to make sure that they have enough stars (points) which will facilitate them to enjoy the benefits.

17. Conclusion The system which ITC has in place is a great one. In which it’s the customer who decides when and how they want to avail the benefits and get the value and enjoy the brand ITC.