Questions

Our target customers are Millennials in India. Avg. annual income of a millennial (software engineer) in India is Rs. 6 lac (i.e 10,000 USD). And we are offering them budget vacations under Rs. 30K (i.e 500 USD). So, there is room for repeat purchases. We are a startup with a nominal funding of 500K USD, tight on cash. Wondering how we can run a loyalty/rewards program to start growing our customer base?

The challenge for a new company in this space is managing the points/loyalty program.

I've worked extensively in this space and wrote a book in 2014 about loyalty points called Credit Card Advantage.

I would recommend you go one of two ways until you've grown the business and can invest in your own full-fledged program:

A: Buy points in someone else's program. Simply give your customers some points in another program that they may enjoy such as an airline loyalty program.

B: Use simple coupons. Once a client has returned from vacation, send them a thank-you package which includes a coupon which can be used in several ways such as a small discount on re-booking, or for example, save up 3 coupons and redeem for a gift (perhaps a travel-related item such as beach bag or day-pack, etc.)

The idea is to give either an immediate reason to re-book with you (the discount) or create an investment in the relationship (if they earn two coupons and want the beach bag you can bet they'll be back to get the last one)

You could also get creative and send them a coupon to give away to a friend who has never traveled before with your company.

Arrange a call if you'd like to brainstorm some other ideas.

Dave


Answered 3 years ago

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