O2O Framework for JioMart

Introduction

On April 22, Reliance Industries Ltd (RIL), its subsidiary Jio Platforms Ltd (JPL) and

Facebook Inc (FB) signed binding agreements for an investment of Rs 43,574 crore by FB for a

9.99 percent stake in JPL. Concurrently, JPL, Reliance Retail Ltd (RRL) and FB’s WhatsApp

have also entered into a commercial partnership agreement. Under this agreement, WhatsApp

will further accelerate RRL’s new commerce business on the JioMart platform while JPL/RRL

will support small businesses on WhatsApp. It benefits both the groups.

The deal values JPL at Rs 4.62 lakh-crore, pre-money. JPL is a new company and was

incorporated on November 15, and Reliance Jio Infocomm Ltd that provides telecommunication

services has been brought under it. The creation of a new company may have been triggered due

to Supreme Court’s October 24 judgment on AGR (adjusted gross revenue) in 2019, following

which it has become imperative for companies to segregate revenues flowing in from non-

licensed telecom services and put such operations under a separate company.

The group is in the process of launching its marketplace, JioMart. It will allow millions

of local retailers and kirana merchants to list their products on the portal and sell them to

customers. It is currently under trial in select areas of Maharashtra — Navi Mumbai, Thane and

Kalyan.WhatsApp is already active in connecting small businesses in India. Many small

businesses are already using WhatsApp Business to promote their offerings, take orders from

clients and get their feedback etc.Both Facebook and Jio will work closely to ensure consumers

are able to access the nearest kirana stores that can provide products and services to their homes

by transacting seamlessly with JioMart using WhatsApp.

Both have their own payment apps. WhatsApp has WhatsApp Pay, which was launched

in February 2018 in India on a trial basis. Payments through WhatsApp were introduced to about
1 million users under a partnership with ICICI Bank. On February 7, 2020, WhatsApp received

the National Payments Corporation of India’s (NPCI’s) approval to roll out its digital payment

service in a phased manner. The NPCI approval follows the Reserve Bank of India’s (RBI’s) go-

ahead on the condition that it will comply with the data localisation norms.Reliance already has

its own payment app, JioMoney.

The deal gives enough leverage to JioMart to effectively compete with well-established

and equally deep-pocketed Amazon and Walmart (Flipkart) in India. However, the duo have

been accused of often violating existing FDI (foreign direct investment) norms, which prohibit

interference in pricing of the products and services for marketplace players. It is said that they

enter into secret deals with the suppliers/traders and offer deep discounts of high-moving

products, thus killing the business of brick-and-mortar shops, who cannot match or better the

prices offered on marketplaces.

Millions of kirana stores are likely to become part of this marketplace model and reap

benefits of scale and convenience for their customers of home delivery. They can be the actual

beneficiaries, and not companies with alleged doubtful credentials as were found with Amazon

and Walmart. This will set an example of how, with clean practices, both physical and digital

retail can co-exist and flourish.Jio is progressing well on its mission: Carriage, Content and

Commerce. The deal will also enhance the valuation of its partnership with FB in case it decides

to go public. At a time when COVID-19 has brought about worldwide business gloom, this is a

feel-good tiding.

The deal can trigger consolidation and better regulatory behaviour in the marketplace.

We can also expect both Amazon and Walmart to come under tighter scrutiny over the issue of

FDI violations. On the other hand, cleaner practices will mean sustainability of retail. Young

educated professionals will be prompted to engage in this field and become entrepreneurs thus

creating more jobs.

Marketing strategy of JioMart

Reliance Retail's commercial agreement with WhatsApp will help fuel the company's e-
commerce venture JioMart. The agreement could be a turning point for Reliance Retail's
e-commerce venture, experts believe. It will help connect kirana stores to consumers and
enable home delivery via Jio's mobile interface.
"Reliance Retail’s new commerce platform, JioMart, is being built in partnership with millions
of small merchants and kirana shops to empower them to better serve the needs of Indian
consumers," said Reliance Industries in a press statement. "The companies will work closely to
ensure that consumers are able to access the nearest kiranas who can provide products and
services to their homes by transacting seamlessly with JioMart using WhatsApp
The entire backend inventory for kirana stores will be managed via JioMart. Goods to kirana
stores will be supplied at special rates from the central warehouse," said a person close to the
development.
Orders could be placed via the JioMart app or the e-commerce website. The stores on the
platform will offer special or discounted rates on groceries. These would be aligned to the kind
of discounts being offered by larger modern trade players along with the benefit of free home
delivery.
This business model is different from Amazon Pantry or Grofers. "It is like an integration of
several existing models to create a robust supply chain management system. It could be a win-
win for both customers and kirana shops," said an industry official, who did not wish to be
quoted. Kirana stores would get online connectivity that will expand their reach as well as
supplies at special rates. Customers would also get discounts as well as home delivery for
groceries and other supplies.
JioMart, Reliance's e-commerce venture, made its debut in early 2020. Carrying the tagline,
“Desh Ki Nayi Dukaan,” the app has been designed to connect consumers with the last mile
neighbourhood stores.
With Jio Platforms, Facebook now wants to strengthen the entire ecosystem for SMBs and help
realise the vision of Digital India. “This is a confluence of forces between two market leaders
and thereby allows them significant inroads and ability to better understand customer
behaviour. The coming together of these two giants also lends depth across key layers of the
value chain, including connectivity.
Attracting Customers
Jio is known for luring customers with attractive offers. The telecom operator made a huge
splash in the market back in the day when it launched for the time in 2016. Since then, Jio has
now grown to become the #1 telecom operator with most subscribers in the country.
So, obviously, we can expect some really crazy deals here. The website says "Never seen before
savings" already, so we can expect something amazing offers, as some offers information has
provided as follow-
Offers to attract customers

 50,000+ grocery products

 Free home delivery
 No minimum order value
 3,000 savings
 No question asked return policy
 Express delivery
 Buy online or offline

Jio Mart is that will connect the customers to their local merchants and the best part of Jio Mart
is that they will use Whatsapp Messenger application to place order and make payments, as the
beneficial side of the customer they don’t need to download any other app for it and there are
400 million user of Whatsapp Messenger so it is greatest advantage of company.
BUSINESS MODEL

This business model is different from Amazon Pantry or Grofers. "It is like an integration of
several existing models to create a robust supply chain management system. It could be a win-
win for both customers and kirana shops. Kirana stores would get online connectivity that will
expand their reach as well as supplies at special rates. Customers would also get discounts as
well as home delivery for groceries and other supplies.

Reliance Retail is not building a native warehouse, rather they are building JioMart on an online-
to-offline marketplace under which it will source grocery items from nearby merchants, allowing
offline retailers to cater to online-focussed customers.

The entire backend inventory for kirana stores will be managed via JioMart. Goods to kirana
stores will be supplied at special rates from the central warehouse.

Reliance is looking at using a hub and spoke model for JioMart, where it will look at managing
both the kirana chain as well as customer order fulfilment, said sources. Through this model, the
Reliance warehouse would act as a centralised hub and goods would travel outward to smaller
locations (kiranas) for distribution, said sources.

Orders could be placed via the JioMart app or the e-commerce website. The stores on the
platform will offer special or discounted rates on groceries. These would be aligned to the kind
of discounts being offered by larger modern trade players along with the benefit of free home
delivery.
FLOW

KIRANA STORES
Goods
(Supplies from Goods KIRANA STORE
warehouse by Reliance)
1. ...n (At special rate from
CENTRAL WAREHOUSE warehouse)

(Managed by Reliance) Order

DELIVERY SERVICE
(Managed by reliance)

Order

CUSTOMER

(At Discount)

Places order at nearest shop online

Operations and Supply Chain

Reliance Jio has nearly 400 million mobile users, at par with FB’s numbers of about 400 million
on WhatsApp, Facebook and Instagram. Most of these subscribers are overlapping.

Operations of JioMart are simple and easy to understand. Here is an example of how you can
place an order as a customer.

Step 1: Select necessary products:

Step 2: Select Kirana Partner:
Step 3: Enter Pin-code
Step 4: Select kirana Partner of your choice
Supply Chain Model (O2O):

O2O (Online to Offline) business model, a kind of new business model between online and
offline channel, is put forward by some innovative enterprises. Supply chain decision under O2O
business model completely changes price competition in traditional dualchannel supply chains.
Operation strategies in O2O supply chains such as price discrimination and service free-riding
have become important issues.

Development of O2O for online retail platform:

With the exponential growth of smart handheld devices and social communities, mobile
commerce, social commerce and proximity commerce are also created in the last decades.O2O e-
commerce mode is a combination of offline business opportunities with the Internet. O2O e-
commerce platforms attract customers online, but the real consumption of services must be
experienced by consumer’s offline. This mode puts high request forward to offline service
quality.

With the changing commerce environment, it is very hard for company can know how to
apply Mobile Commerce, Social Commerceand Proximity Commerce with their traditional
commerce via Online / Offline. With the changing commerce environment, there are lots of
online to offline and offline to online interactionsdifferent from traditional bricks-and-mortar and
E-commerce. Focusing on mobile commerce, proximity commerce and social commerce then
developing the O2O commerce service model.
 The top area represents the real-world marketing service model (Offline).
Manufactures produce and send their products to channels or brick-and-mortar. According the
location-based service and proximity commerce marketing strategies, retailers can attract users to
use their mobile devices to get online coupons then shopping in the nearby physical store.
Besides, retailers propose their mobile apps to provide mobile services to provide after services
to retain their target audience loyalty.

The bottom area represents the online marketing service model. Users tend to
survey others’ opinions onlinebefore making decisions. Users are very willing to participate with
the brands on Social Network, such as Facebook fans group. They will click likes, shares and
post comments in any social events. So retailer can monitor online world of mouth (WOM) to
adjust their marketing strategies and sustain relationship with their customers directly and
instantly. Moreover, retailers can apply social events to influence and engage consumers’ social
network friends to participate and provide referral awards or group purchase discounts.

O2O Service System Framework:

This framework is separated with interface, interaction, intelligence and integration

layers. The first Interface layer represents different kinds of channels which include bricks-and-
mortar (offline), proximity commerce, mobile commerce, social commerce and E-commerce
(online) to provide different user interfaces. The second Interaction layer represents the
interaction services where user or retailer can access from interface layer according to the
commerce lifecycle proposed by IBM and different channels from interface layer. The third
Intelligence layer represents integrated analytics applied to single, multiple or Omni-channels.
And the bottom Integrated layer represents the Cloud / Enterprise Infrastructure Services, which
can be applied to cooperated with the general SOA of scalable systems.
Digital Marketing for O2O:

Since consumers may come from online or offline channels. It should have a manageable
and integrated digital marketing strategy. Using the Smart Insights RACE ((Plan) > Reach >Act
> Convert > Engage) digital marketing strategy to help retailer to manage and improve digital
marketing. Back-end server can gather the user interaction information such as number of App
downloads, counts of scanned QR codes, and Cost-per-click to analysis which type of product
will attract user to take interactions. Then we can calculate a first Click through Rate (CTR) from
QR Code scans to mod people counting.
HOW TO INCREASE SALES VOLUME
1. Use a Personalized Call-to-Action
An eCommerce website without strong calls-to-action will not generate more sales. A call-to-
action (CTA) is an element of a web page that directs the customers to take a particular step. For
instance, in product pages, this could be a button labeled “Add to Cart” or “Buy Now.”
A personalized call-to-action is more precise. While it does not significantly address every
individual buyer separately, it brings into account where they are in your sales funnel. In a
research of over 93,000 CTAs, HubSpot determined that tailoring the CTA text based on whether
customers are leads, visitors, or paying clients improved their conversion rates.
The most important call-to-action is your up-sell & cross-sell notification – both as the buyers
are adding products and as they are checking out.  Therefore, this is an excellent tool for growing
engagement and knowledge about your product offerings and, as a result, improving sales.
2 .Simplify the Checkout Process
Simplifying the checkout process is an excellent way to ethically increase your eCommerce
sales. In fact, one of the main reasons for shopping cart abandonment is that there are so many
steps in the order process. According to the research, 27% of cart abandonment is due to a
complicated or extended checkout process.
This means for some reasons customers do not complete the shopping. It refers to the potential
buyers who add products to the cart and exit before they end the checkout process. So, all the
extra step in your checkout process makes it more difficult to complete, and adding to that
process will drive away a fraction of your potential customers.
3 .Keep Your eCommerce Website Mobile Friendly
To be competitive in today’s online shopping market, you must have a mobile-friendly
eCommerce website. It is really essential for online business. Nowadays, people are frequently
using their mobile devices to search for and purchase products, however, they need an intuitive,
seamless user experience. According to the Google survey, 61% were more likely to leave if a
website was not mobile-friendly. As per Comscore report, mobile users now surpass the number
of desktop users in the U.S.
If you want to maximize conversions on your eCommerce store, it is important to provide best
mobile experience to the customer.
Here are few things that require to be considered:

 Make your eCommerce website responsive.

 Make sure your website loads quicker.
 Optimize your mobile site & enhance site search
 Simplify the checkout process

4. Use Pop-up Offers

Most people keen when they hear the word “popup”, and reasonably so. The popups help your
online grocery store generate email subscribers by offering a particular discount or coupon to the
customer who fills out a form. Besides, Pop-ups can help reduce shopping cart abandonment
rates & boost your conversions.
If you really need to increase your conversion rates and sales, don’t overlook the potential of opt-
in offers. Moreover, pop-ups not only improves your contacts significantly but also increases
sales promptly.
Make sure that your pop-ups will perform well by giving something appropriate and useful to the
customer. In case If your offer is a promo or freebie that your customers are happy to use, then
the pop-up window will be perceived as a gift rather than a disturbance.
5. Offer Surprise Rewards
Do you want to make your consumers happy? you should find a way to keep existing buyers to
purchase from you again. So, the best approach to do that is with the help of loyalty program.
Provide rewards in the form of points which they can utilize to acquire free products, free
shipping, and discount coupons to your loyal customers. Besides, this will definitely encourage
customers to visit your online grocery store repeatedly.
On the other hand, likely rewards are not as effective – they may also lead to lower levels of
happiness, says psychology.
6. Use Live Chat
Every consumer has a different question, and it’s really infeasible to answer all of them all the
time. Using live chat, the consumer can ask questions or reveal concerns before making any
shopping decision. Hence, this opportunity can boost the conversion rate or fulfill the consumer
shopping experience for your brand. Besides, providing live chat on your eCommerce website
will also allow you to find the lesser and common problems felt by the consumers. Solving those
problems can lead to an overall growth in conversions.
Moreover, a number of firms had great success with chat apps. A company Intuit improved their
conversion rate by 211% with adding a chat feature. By simply asking the customer to “look
around” and chat if they have any questions, they have found a simple method to support
discussion without selling a product.
7. Provide Multiple Payment Options as Possible
Having multiple payment gateways for your online grocery store provide more convenience to
your customers. Moreover, it will prevent shopping cart abandonment. Although, many payment
gateways give consumers the option to buy using their smartphones, further adding to the
flexibility.
By offering more payment options like Google Wallet, ApplePay, Stripe, WePay, including
newer services that are becoming frequently popular on mobile. Absolutely, it can be a hassle to
optimize your eCommerce website to add all these options, however doing so is a great method
to boost online sales, especially if your grocery shopping website has great mobile traffic.
8. Socialize Your Online Store
Social media gives great marketing opportunities for all types of online businesses. You can use
social media to build stronger relationships with existing customers. Make sure your customers
can easily access your social network channels from your online grocery store. Adding a “Like”
or “+1” buttons to your eCommerce store will turn your customers into promotional agents that
help spread the word about your brands and products. Make sure your buyers can share desired
products to their friends via social media. This gives your customers the seamless shopping
experience.
9. Flaunt Customer Testimonials and Trust Signals
In today’s social media environment, customer feedback is quite important. The positive reviews
of satisfied consumers can help you get the trust of your potential clients. And the negative
reviews can help you get experience and work on the points that buyers revealed a dislike with
your services.
The groups of satisfied consumers are considerably more influential than even the well-written
sales copy, so be sure to add many reviews and testimonials that speak to how incredible you and
your services are. These might look on your product pages, pricing page, landing pages, even
your home page of your online store.
10. Implement Tiered Pricing
Tiered pricing is an excellent way to target an audience and inspire consumers to spend. It is a
strategy employed to determine a price per unit within a range. It’s necessary to consider pricing
as that will perform a part in your consumer’s overall satisfaction.
JioMart is an online grocery store that aims to provide 50,000+ grocery products, at competitive
discounts and express delivery at your doorstep. It will partner with local retailers and is not
going to follow the footsteps of other competitors in this field, by avoiding the system of
warehousing. Currently, it has begun its operations in Mumbai, Kalyan, and Thane in
Maharashtra.

The concept was to leverage the network presence of kirana stores for RIL's e-commerce
initiative. Under this initiative, RIL started JioMart pre-registration in December last year.
JioMart is the food and grocery e-commerce venture.

The company then announced the launch of new format grocery stores – SMART Point, which
are purported to complement the JioMart initiative. 18 such stores were launched in December
2019 in three areas – Navi Mumbai, Thane, Kalyan – which are also the pilot regions for
JioMart. In its new format 'Smart Point' stores, RIL is "using an interplay of delivery through
kirana stores and own warehouse," Credit Suisse said. The Smart Point stores are a smaller
version of larger Smart stores, with the same promise of 'minimum 7 per cent off on MRP' on all
products. In addition to assisting the JioMart venture, these stores will also function as a full-
fledged grocery outlet, which will further deepen Reliance Retail network.

"Currently, the larger format SMARTstores are few and located far from a residential
neighbourhood, but the Smart Point stores have been opened closer to the shopper," it said. "As
of March 31, 2019, there were 154 Smart stores across 96 cities, and now within a short time
frame, 18 Smart Point stores have been opened. This would augment RIL's grocery play." Credit
Suisse said the Smart Point store came across as a typical mini-market self-service
neighbourhood food and grocery store. The assortment was spread across the key categories of
food, personal care, household cleaners, paper goods, and fresh fruits and vegetables.

Features of JioMart

1. Online to Offline : JioMart is going to operate on Online to Offline model, which means
it will connect with local retailers and deliver goods to the customers by procuring them
from the nearest store located in the customer’s vicinity. This model is unlike the
warehouse model used by Grofers and Amazon Now. JioMart aims at organizing the
unorganized retail sector, hence benefitting local shopkeepers whose businesses were
earlier being adversely affected due to competitive pricing and warehousing strategies of
other online retail stores. In addition to increased sales and margins, these shopkeepers
will be equipped with points of sale (PoS) terminals, integrated billing applications, GST
compliance, hence ease in taxation and also providing them inventory management skills
 and supply chain management skills. In this way, RIL will establish its new venture
which is termed by them as "Desh Ki Nayi Dukaan".

2. Customer-Friendly Service : JioMart is claiming to offer,

2.1 Free Home Delivery: JioMart is going to give you the benefit of delivery of
commodities at your doorstep, by procuring it from the nearby store, and that too, free of
cost, which your Kirana wala bhaiya might not.
2.2 No minimum value: Generally, ecommerce sites set up a minimum value of a purchase
to validate free delivery. For example, Grofers has the policy of providing free delivery
for a minimum purchase of Rs 500. JioMart will not expect any minimum payment to and
hence, will not charge delivery charges, even for the smallest of an item to be ordered.
2.3 Express Delivery: Express delivery means quicker delivery than ordinary service. In
ecommerce, it is generally within 24 hours.
2.4 No questions asked return policy: When you wish to return some goods ordered online,
you almost always have to face some unnecessary questions which you may not wish to
answer to, but cannot avoid. JioMart is saving you from this botheration.
2.5 Early bird discount of Rs. 3000: JioMart has come up with the promotional strategy of
pre-registration, in which people can save up to Rs 3000 on future shopping. Jio has
started sending invites to its existing telecom service users in selected areas.
Delivery Service

Grab A Grub is an Indian logistics startup, founded in 2013. In March 2019, Reliance Industrial
Investments and Holdings Limited (RIIHL) acquired it for $14.9 million to support the logistics
of Mukesh Ambani’s “planned e-commerce venture”. He chose Grab as it has worked efficiently
with some mega-brands such as McDonald's, BigBasket, Myntra, Amazon Now, Swiggy, etc.
and provides numerous services.

Software Design

C-Square Info Solutions Private Limited, founded in 2002, provides software solutions for
various functions online ecommerce, salesforce, retail, etc. It was also acquired by RIIHL in
March in 2019, for an amount of $11.56 million. A strategic move by RIL, it, too, was aimed to
brace JioMart.

Pricing Strategy

1. As part of the soft launch, RIL confirmed that it is offering “preliminary discounts” to
Reliance Jio subscribers.
2. JioMart is offering minimum 7% discounts on grocery products.
3. JioMart has come up with the promotional strategy of pre-registration, in which people
can save up to Rs 3000 on future shopping. Jio has started sending invites to its existing
telecom service users in selected areas.

Step by step procedure to order from JioMart

1. Users need to save the JioMart WhatsApp number 88500 08000 in their contacts.
2. Once saved, send a ‘Hi’ message to JioMart on WhatsApp.
3. JioMart will reply with an automated text to your message on WhatsApp with a link to
select your locality and products. Keep in mind that the link is valid only for 30 minutes
after you receive it. You can send a ‘Hi’ again to receive a new link in case the original
URL expires.
4. Fill up the form will all the details and click ‘Proceed’.
5. Next, JioMart will list all the products available for order in your area. Select the items
you wish to order and then hit ‘Place Order’.
6. The merchant will update you once the order is ready, following which you can head to
the store and collect your JioMart order.
Additionally, JioMart promises free home delivery, express delivery services and ‘never
before savings’ once the App is launched.
O2O Triangle Interaction Model

Delivery-model Customer Preference, %

It shows that 70% of the consumers prefer cheapest form of home delivery, only 2% would pay
more for same day delivery. As the Indian consumers shopping is based on their budget they
want quality of product within the range and in lesser time. This expectation of consumer can be
made by the Indian E-retailers if they open their offline store from which the consumers can go
and collect the order placed online. This will save their time as they don’t have to wait for the
delivery and neither has to pay anything extra. The other major limitation of online shopping will
also be solved that is “Feel and Touch Experience” which is going to reduce the increasing
amount of complaint for online shopping on various Government complaint portal and grievance
redressal forum.

BUILDING CONSUMER LOYALTY FOR ONLINE RETAIL

INTRODUCTION

In today’s highly competitive ecommerce market, brand loyalty can be an elusive concept. From
fast customer service and convenience, to product quality and brand values, there are many
factors that might help to keep customers happy.

Consumer loyalty seems to be based on a collection of factors. The first is trust. Consumers must
trust the vendor or product they encounter. Second, the transaction or relationship must have a
positive perceived value greater than that supplied by competitors. Third, if marketers build on
the first two factors, they may be able to create a level of positive customer emotional
attachment. That emotional response may be commitment to their brands that is resistant to
change.

Gaining (and maintaining) customer loyalty can significantly boost revenue for retailers. 
However, as the needs and demands of today’s consumers change, customer loyalty is not as
easy to come by.  Research by Access Devlopmentreported that 79% of customers would take
their business to a competitor within a week of experiencing poor customer service.  This equates
to an estimated $1.6 trillion in revenue loss due to customers switching brands as a result of poor
service.
Ways to build customer loyalty

1. Let them try before they buy

This strategy is based around managing risk, with brands taking away the uncertainty
associated with online shopping and allowing customers to only pay for items they keep.

Essentially, it lets customers know that they are trusted, which in turn helps to create a
cycle of confidence in the brand and its service. On a basic level, it also means that
customers might be less worried about the financial implications of online shopping,
which could spur them on to order on a more regular basis.

2.Align with consumer values

People are more attracted to brands that share the same values and beliefs as they do. 64%
say that this is the main reason they have a relationship with a brand. As a result, customers are
more likely to stay loyal too if this is reinforced. For example, if they are reminded of how their
custom might benefit a particular cause, or if they’re given rewards that contribute to it.

3.Explain the benefits of loyalty

Loyalty schemes are proven to be an effective tool for customer retention. Research suggests that

84% of consumers are more likely to choose a retailer that has a loyalty programme, while 68%
of millennials say they wouldn’t be loyal to a brand if it doesn’t have one. 

One of main the reasons that customers stop participating in schemes is because they do not offer
enough or sufficient rewards (or make customers aware of them). So, it’s not just important for
brands to offer customers a good loyalty programme in the first place, but to also effectively
promote and communicate its benefits. 

One way to do is with a user-friendly explainer page, which helps customers understand how a
programme works and encourages them to get involved.

4. Genuine gratitude
While operations can certainly make a difference, there are much more simple factors that can
impact whether someone wants to come back. For example, expressing gratitude to customers
can make a difference (for first-time buys as well as repeated purchases).

5.Be transparent (and accountable)

Many brands tend to be transparent only after admitting a mistake or wrong-doing. This might be
somewhat effective for preventing customers from going elsewhere in the short-term – but it
certainly doesn’t inspire loyalty in the long run. 

In contrast, being transparent from the get-go is much more likely to increase retention rates.
Moreover, Label Insight suggests that 40% of customers say they would switch from their
current preferred brand to one that offers more transparency.

This is because transparency helps to generate trust, reassuring customers about what they can
expect. Even better if a brand goes the extra mile and surpasses expectations.

6.Engage Customer Through Artificial Intelligence Marketing

Artificial Intelligence Marketing (AIM) solutions are just one example of a new type of
marketing technology revolutionizing how marketers can truly excel at building and maintaining
one-to-one relationships at scale. With big data and machine learning working behind the scenes
to uncover important insights and key customer behavior trends, marketers can focus on creating
powerful content and strategy to bolster these critical consumer relationships, while the AI
marketing solutions and machine learning take care of the heavy lifting.
AI marketing solutions, along with marketing automation tools, are a great way to engage
customers and build strong consumer-brand relationships. Automation tools provide marketers
with the freedom to control various campaign aspects from a single location, and target
customers based on predefined segments and profiles. AI marketing and marketing automation
solutions help marketers keep their brand at the top of consumers’ inboxes, and at the top of their
minds.

7.Get to Know Your Customers – It’s All in the Data

Building customer loyalty means providing an exceptional experience.  In order to do this,

retailers must really get to know their customers – their likes, dislikes, channel preferences,
product preferences, and so forth.  This is the age of hyper-personalization.  Consumers today
expect their favorite brands to collect their personal data and use it to deliver personalized offers.

8.Reward the Customer

From store cards that discount certain items, to free gifts with purchase, there are numerous ways
to incorporate a customer reward program. Before you spend a lot of money in marketing,
consider what type of reward you value most as a shopper.

To some customers, a real reward may be a simple gesture of appreciation. Something small and
inexpensive can read like a true "thank you for your business." When you choose the reward,
you'll probably agree to spend a few dollars on a loyal customer will get you hundreds of more in
revenue. And more importantly, it may even bring you referrals.

Contributors:

1. Sanket kadam
2. Yash hosure
3. Devesh Panchal
4. Ranu kumar
5. Ketan kadam
6. Akash dherange.