PROJECT REPORT

ON
“A STUDY TO UNDERSTAND COUSTOMER
LOYALIY PROGRAM IN ONLINE SHOPPLING
PORTALS”
◦ Submitted for the fulfillment of the requirement activity.

KYC (Know your Customer)

(The Market Study Activity)

◦ Master of Business Administration Batch 2022-24 Section 8

Submitted by:-
1. Jaspreet Singh warya
2. Piyush Kain
3. Jatin Soni
4. Sudhanshu ajmera
5. Gulshan Udasi
Submitted to:-
Dr. Arjun Murti
Summary
 DECLARATION

I hereby declare that the dissertation “A STUDY TO UNDERSTAND

COUSTOMER LOYALIY PROGRAM IN ONLINE SHOPPLING PORTALS”
Submitted for Submitted for the fulfillment of the requirement
activity. KYC (Know your Customer) (The Market Study Activity) at
Institution of professional Education and Research & this is our
original work
 CERTIFICATE
This is to certify that dissertation entiled “A STUDY TO
UNDERSTAND COUSTOMER LOYALIY PROGRAM IN ONLINE
SHOPPLING PORTALS” Is the research work carried out by Jaspreet
Singh warya, Piyush Kain, Jatin Soni, Sudhanshu ajmera, & Gulshan
Udasi Student of MBA ,at IPER 2022, in partial fulfillment of the
requirement for Submitted the fulfillment of the requirement
activity. KYC (Know your Customer) (The Market Study Activity) and
that dissertation has not formed the basis for the …..
 ACKNOWLEDGMENT

We using this opportunity to express our gratitude to everyone who

supported me throughout the course of this MBA project. We are thankful
for their aspiring guidance, invaluably constructive criticism and friendy
advice during the project work. We are sincerely grateful to them for
sharing their truthful and illuminating views on a number of issues related
to the project.

We express our warm thanks to Mr. Roshan Sehajpal for their support and
guidance at in this report.

We would also like to thank our project external guide Mr. Krishn chand
from the Flipkart company] and all the people who provided us the facilities
being required and conductive conditions for my MBA project.

Thank you,
List of Content
1. TITLE PAGE
2. DECLERATION
3. CERTIFICATE
4. ACKNOWLEDGEMENTS
5. TABLE OF CONTENT
6. INTRODUCTION
7. INTRODUCTION OF E-COMMERCE
8. COMPANIES USING CONSUMER LOYALITY PROGRAMS
9. Questionnaire
10. Interpretation of the result
11. Learning suggestion obvervation
 INTRODUCTION

Consumer Loyalty Programs in E-Commerce:-

One of the latest trends that have proven to become a big hit for bringing
back customers is customer loyalty programs. Whether it’s Swiggy’s Super
program or Zomato’s Gold program, they all have one thing in common–
customers love them.

So, what is the secret to a successful loyalty program? How does a business
come up with one?

The basics of customer loyalty programs and how to measure their

effectiveness. Let’s begin!

An ecommerce loyalty program is a marketing strategy developed by

ecommerce stores to nurture and reward their best customers.
Membership may be paid or free. And when customers join, they're given
special deals, discounts, and rewards for engaging with the brand and
buying products.

The origin of loyalty programs dates back to the 1950s where grocers would
provide rewards to their top customers. This practice was then widely
adopted and implemented by the airline industry in the form of airline
miles, which quickly grew to become one of the most successful loyalty
programs.
A customer loyalty program helps boost interest by introducing incentives
for the customer to make a buying decision. These incentives can be
provided to the customer in many different ways, by both products and
services.

Here are some common ways in which e-commerce businesses

can offer rewards to their buyers:-

Discounts
and rebates

Rewards and
Coupons promo codes

Free
merchandise Access to
unreleased
product features
 Why do you need a customer loyalty program?

Customer loyalty programs can play a huge role in ensuring customer

retention for your brand. Studies show that it costs 5x less to retain
customers than acquire new ones and loyal customers spend up to 67%
more than new customers.

Here’s how important it is to ensure customer loyalty– loyal customers

often convert and spend more money with brands they like, with 78% of
loyal customers willing to spread the word to their friends and family.

Effective e-commerce marketing over the years has taught us that nothing
works like word-of-mouth recommendations, especially when it comes to
an e-commerce website.

Here are some benefits of setting up a solid customer

loyalty program for your e-commerce store:-
With an airtight loyalty program, you can be sure to provide a reason for
customers to keep coming back. Whether it’s a promo code or a cashback,
it can play a big role in ensuring customer satisfaction.

1. Helping acquire new customers:- Although the main purpose of a

loyalty program is to retain existing customers and increase repeat
orders, referrals can work well for your brand. The next time you host
a sale, remember to reward buyers who bring in their friends

2. Reducing churn:- The churn rate, also known as the rate of attrition or
customer churn, is the rate at which customers stop doing business
with an entity. It is most commonly expressed as the percentage of
service subscribers who discontinue their subscriptions within a given
time period. Loyalty programs can help reduce churn rates greatly as
customers keep coming back to do business with you.

3. Segmentation of customers:- Identifying high-value customers is one

of the first steps to boosting your business. Whether it’s an existing
customer or a new one, loyalty programs help you track what
customers are purchasing, how much they’re buying and what you
must do to keep them high.

4. Increasing lifetime value:- It’s a known fact that loyalty programs do

boost purchases and increase the number of buyers on your e-
commerce websites to an extent. Customer lifetime value is the total
worth to a business of a customer over the whole period of their
relationship. Thus, you can certainly expect CLTV to increase
proportionally with the increase in the frequency of purchases.
 5. Saving marketing costs:- Once you learn who your ideal customers
are, you can better target your advertising to bring in more new
customers who fit the profile of the best customer and replicate that
model. These new customers are more likely to convert into repeat
customers. This data can help you to cut down advertising costs by
eliminating advertising in mediums that attract one-time buyers or
deal-seekers.
6. Staying ahead of the competition:- A special discount or extra points
for every purchase can mean a world of difference to a customer who
is facing a dilemma between two brands. With customer-facing ideas
like these, your competitors will have a tougher time luring your
customers away from you.

Estimating the success of your loyalty program

For any marketing decision that you undertake for your e-commerce
business, it’s important to measure the success of it. Measuring the
effectiveness of the move can help you in replicating your success model
and rectifying mistakes you may have made along the way.

Below are a few methods to know if you’re taking the right path for your
business by offering such loyalty programs. These methods can be used as
yardsticks to measure the performance of your product otherwise, too.

Track your customer retention rate

Customer retention rate is simply the percentage of customers who remain
with you, relative to the number you had at the start of your period. Keep
in mind, this does not count new customers.
By implementing a successful loyalty program, these numbers should
increase. According to a study, By Harvard Business University increasing
customer retention rates by 5% increases profits by 25% to 95%.

Keep an eye on your Net Promoter Score

Net Promoter Score (NPS) is one of the most popular ways to obtain
feedback from your customers. This score refers to the likeliness of
customers preferring your services or recommending your products. The
scale usually ranges between 1-10 and is directly proportional to customer
satisfaction.

Tip: NPS isn’t limited to e-commerce businesses and can be used to

measure different kinds of feedback.

Churn rates

Customer churn refers to the number of customers that end their

relationship with the brand, determined by a certain time period when a
customer fails to interact with the business.

Churn can be due to bad service, lack of satisfaction or simply, boredom.

The lesser the churn is, the more you can expect your business to succeed
and make a lasting impact on the market.

Conclusion

There are no hard-and-fast rules to ensure 100% success, but there are
many methods worth experimenting with, and loyalty programs are one of
those. When it comes to profitability, we at Razorpay Thirdwatch, are keen
on helping entrepreneurs and businesses scale their business and bring
down losses.

This is merely the tip of the iceberg, check out how we are helping over
500+ Indian e-commerce businesses reduce their business costs by 40%
with Artificial Intelligence and Machine Learning.
E-commerce

E-commerce (electronic commerce) is the activity of electronically

buying or selling of products on online services or over the Internet. E-
commerce draws on technologies such as mobile commerce, electronic
funds transfer, supply chain management, Internet marketing, online
transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems. E-commerce
is in turn driven by the technological advances of the semiconductor
industry, and is the largest sector of the electronics industry.

The term was coined and first employed by Dr. Robert Jacobson,
Principal Consultant to the California State Assembly's Utilities & Commerce
Committee, in the title and text of California's Electronic Commerce Act,
carried by the late Committee Chairwoman Gwen Moore (D-L.A.) and
enacted in 1984.

E-commerce typically uses the web for at least a part of a

transaction's life cycle although it may also use other technologies such as
e-mail. Typical e-commerce transactions include the purchase of products
(such as books from Amazon) or services (such as music downloads in the
form of digital distribution such as iTunes Store).
 Types of e-commerce

Online retailing, electronic markets, and online auctions. E-commerce

is supported by electronic business. The existence value of e-commerce is
to allow consumers to shop online and pay online through the Internet,
saving the time and space of customers and enterprises, greatly improving
transaction efficiency, especially for busy office workers, but also saving a
lot of valuable time.

◦ Business to Business
◦ Business to Consumer
◦ Business to Government
◦ Consumer to Business
◦ Consumer to Consumer
E-commerce businesses may also employ some or all of the
following :-

Online shopping for retail sales direct to consumers via web sites and
mobile apps, and conversational commerce via live chat, chatbots, and
voice assistants.

Providing or participating in online marketplaces, which process third-

party business-to-consumer (B2C) or consumer-to-consumer (C2C) sales.
Business-to-business (B2B) buying and selling.
Companies Using Companies using Consumer
Loyalty programs.

Amazon

Amazon is an American multinational technology company focusing on e-

commerce, cloud computing, online advertising, digital streaming, and artificial
intelligence. It has been referred to as "one of the most influential economic and
cultural forces in the world and is one of the world's most valuable brands. It is
one of the Big Five American information technology companies, alongside
Alphabet, Apple, Meta, and Microsoft.

Amazon was founded by Jeff Bezos from his garage in Bellevue,

Washington. On July 5, 1994. Initially an online marketplace for books, it has
expanded into a multitude of product categories, a strategy that has earned it
the moniker The Everything Store. It has multiple subsidiaries including Amazon
Web Services (cloud computing), Zoox (autonomous vehicles), Kuiper Systems
(satellite Internet), and Amazon Lab126 (computer hardware R&D). Its other
subsidiaries include Ring, Twitch, IMDb, and Whole Foods Market. Its acquisition
of Whole Foods in August 2017 for US$13.4 billion substantially increased its
footprint as a physical retailer.
Amazon Prime is the Best Loyalty
Program of all Time
Most loyalty in its current form is not generating the value it could. That’s why
many brands across many industries are making the switch to premium loyalty
programs.

The core of Amazon’s growth comes from its premium loyalty program, Amazon

Prime.
The program has been hugely successful, with Prime members spend twice as
much as non-Prime members do.
 As of Q1 2019, 62% of all U.S. households are now Amazon Prime subscribers.
 The average Prime member spends about $1,400 per year,  compared to $600 for
non-Prime members.
 Prime members shop on Amazon 26 times  per year vs. 14 times for non-Prime
customers.
 Prime members spend $55 per visit vs. an average of $42 per visit for non-Prime
customers.
 Prime members purchase 2.2 items on average per visit  vs. 2 items for non-Prime
customers.
 FlipKart

Flipkart Private Limited is an Indian e-commerce company,

headquartered in Bengaluru, and incorporated in Singapore as a private
limited company. The company initially focused on online book sales
before expanding into other product categories such as consumer
electronics, fashion, home essentials, groceries, and lifestyle products.
The service competes primarily with Amazon's Indian subsidiary and
domestic rival Snapdeal. As of March 2017, Flipkart held a 39.5% market
share of India's e-commerce industry.  Flipkart has a dominant position in
the apparel segment, bolstered by its acquisition of Myntra,
In August 2018, American retail chain Walmart acquired a 77% controlling
stake in Flipkart for US$16 billion, valuing Flipkart at around US$20 billion.

Our Visite at Flipkart Wholesale

Flipkart launches its loyalty program ‘Flipkart
Plus’
Indian e-commerce major Flipkart has officially launched its own loyalty
programme, Flipkart Plus, for the Indian consumers. Flipkart Plus will be a
free customer subscription service.
Flipkart launches its loyalty programme ‘Flipkart Plus’ - Flipkart- Facebook
The key highlights of the program are free and fast delivery, early access to
major sale events, and an enhanced customer support experience.
“At Flipkart, we deeply understand the Indian customer and solve for them
meaningfully. This means that everything we do is not just limited to a
particular section of the society but appeals to a wider audience. With that
in mind, we have crafted Flipkart Plus as India’s most inclusive customer
benefits program,” said Flipkart CEO, Kalyan Krishnamurthy.
“With its wide reach, appeal, and design to cater to the needs of various
customer segments, Flipkart Plus is ideally positioned to make a strong
impact on the rewards industry and act as a catalyst in the evolution of e-
commerce in India,” he added.
With this service, Flipkart is looking to take on Amazon Prime, which is one
of the highest revenue earners for the Seattle-based company.
Flipkart, for the moment, has decided to keep its subscription service for
free after its paid subscription service, called 'Flipkart First', which cost Rs
500 ($7) annually, failed to take off last year.
 Myntra

Myntra is a major Indian fashion e-commerce company headquartered

in Bengaluru, Karnataka, India. The company was founded in 2007-2008
to sell personalized gift items. In May 2014, Myntra.com was acquired
by Flipkart.
In May 2022, Myntra launched an express delivery service on its app to
offer one of a kind of experience by fashion & beauty platform. This
service allow shoppers to receive their orders for products marked with ‘M-
express tag’ on the listing page within 24-48 hours of purchase.

loyalty program in myntra

Following the lead of parent Flipkart, Myntra has launched a customer

loyalty program called ‘Myntra Insider’ to drive engagement on its fashion
and accessories platform.

Flipkart recently launched its ‘Flipkart Plus‘ which rewards users for their
purchases, but Myntra wants to stand out by building a first-of-its-
kind engagement driven platform. In fact, there’s a very low
threshold to start earning points, and you can earn them by spending as
little as ₹10.
Insider is quite different from Amazon Primeas well, so it may well be
worth your money. Myntra Insider goes live today, so it’s ready for action,
and it’s quite unique for the Indian digital landscape.

Myntra not only gives users points, but has elements of gamification
throughout its platform. It’s not just about spending money; everything
you do can give you some points – visiting specific pages, scrolling
through products, adding items to your wishlist and cart and completing a
purchase. Unlike Amazon Prime, Myntra Insider requires no membership
fees. Any registered user who shops from Myntra gets the perks.

Privileges and Perks

As a Myntra Insider users, you will earn 1 point for every ₹10 spent and
will then gain access to privileges such as early access to
sales, priority customer support, makeover sessions, free
shipping for first 30 days, and a lot more. You gain access to deals and
perks for restaurants, travel, entertainment, and more
through BigBasket, BookMyShow, Zomato Gold, Hotstar, and
MakeMyTrip as well.

Will Myntra Insiders Succeed?

Loyalty program is the flavor of the season as digital services and
companies look to increase user activity on their platform in the hope of
converting that to increased transactions. The platform currently claims
20 million monthly active users and aims to attract at least 10 million
subscribers for Insider by the end of the year.

Naykaa
Nykaa is an Indian e-commerce company, founded by Falguni
Nayar in 2012 and headquartered in Mumbai. It
sells beauty, wellness and fashion products across websites, mobile
apps and 100+ offline stores. In 2020, it became the first
Indian unicorn startup headed by a woman.
Nykaa sells products which are manufactured in India as well as
internationally. In 2015, the company expanded from online-only to an
omnichannel model and began selling products apart from beauty. As
of 2020, it retails over 2,000 brands and 200,000 products across its
platforms.

Nykaa has a series of in-house brands within beauty and fashion. Some of
them include:
 Nykaa House of Brands – Nykaa Naturals, Nykaa Cosmetics, Kay
Beauty
 Nykaa Fashion – Nykd by Nykaa, 20 Dresses, RSVP, Mondano,
Likha, Pipa Bella

About Nykaa Loyalty Program

The unique collection of the store is now easier with the Nykaa Loyalty Program
available on giskaa.com. You can now grab every favorite product without paying
the exact amount on the price tag. These Nykaa Loyalty Program will offer you
the exciting price reduction keeping no bar on your purchase. We have curated
the best Nykaa Loyalty Program for the genuine and straightforward savings on
every purchase. With these Nykaa Loyalty Program, you can shield yourself from
the low quality products. Giskaa.com allows you to shop online at the best prices
without sacrificing the comfort of your home.

DOMINO’S PIZZA
Domino's Pizza, Inc. trading as Domino's, is an American multinational
pizza restaurant chain founded in 1960 and led by CEO Russell Weiner.
The corporation is Delaware domiciled and headquartered at the Domino's
Farms Office Park in Ann Arbor Township, near Ann Arbor, Michigan. As
of 2018, Domino's had approximately 15,000 stores, with 5,649 in the
United States, 1,500 in India, and 1,249 in the United Kingdom. Domino's
has stores in over 83 countries and 5,701 cities worldwide. In 2018
Domino's Pizza was inducted into the Queensland Business Leaders Hall
of Fame.

There are many pizza companies in India and many more international pizza
companies are trying to enter the Indian market, but Domino’s Pizza remains
their unbeaten leader due to our excellent quality, delicious taste, prompt
service and pocket-friendly prices.

The pizza company in India which takes care of the Domino’s pizza franchise is
Jubliant Food Works.

Jubilant Food Works was incorporated in 1995 and initiated operations in 1996.
JFL is India’s largest and fastest growing food service company, with a network of
378 stores (as of 31 March, 2011). JFL & its subsidiary operates Domino’s Pizza
brand with the exclusive rights for India, Nepal, Bangladesh and Sri Lanka. The
pizza company is the market leader in the organized pizza market with a 50%
market share and 70% share in the Pizza home delivery segment in India.
 Domino’s Loylalty programs.
Domino’s has a lot to offer

Domino’s decided to do something nice for their loyal and frequently-ordering

customers. This program will take you through an experience like no other. You
can order and redeem points and get a pizza practically for free!

We can explain who Dominos run this loyalty programs.

Step 1: Enroll in the Cheesy Rewards Program that you can find on the official
Domino’s app. You will have to give your consent to be a part of it. You can enroll at
your nearest Domino’s outlet too.

Step 2: Understand how it works. Every time you place an order of more than 350 INR
from Domino’s, you will earn 100 cheesy reward points.

Step 3: Once you collect 600 points, you will be eligible to redeem them for a free
pizza! Your points will be displayed to you on the cheesy rewards page in a quirky and
pictorial format where every 100 points would be shown to you in the form of a pizza
slice that slowly completes itself once the 600 points are earned. You can also see the
balance points on the homepage.

Step 4: Once you are eligible to redeem a free pizza, you will be taken to a special
menu page where you can select and finalize your order. Claim this order and receive
your free and delicious pizza.

This is how Dominos run its loyalty programs.

 LENSCART

Lenskart is an Indian multinational optical prescription

eyewear retail chain, based in New Delhi, India. As of September 2020,
Lenskart had 900+ stores in over 46 cities in India and also in our city Bhopal.
This store is visited by our team. Its manufacturing facility in New Delhi
manufactures 3 lakh glasses a month.

Lenskart is building a megaunit in Rajasthan, an automated factory which will

manufacture 5 crore glasses annually.

The company had a valuation of $1 billion by December 2019 after Softbank

invested around $275 million.. Peyush Bansal, a former Microsoft employee,
founded Lenskart in 2010 along with Amit Chaudhary and Sumeet Kapahi. In
2020, Lenskart generated total revenue of ₹1,000+ crore. Financial backers of
Lenskart include TPG Growth, International Finance Corporation and Adveq
Management.

Ratan Tata and Kris Gopalakrishnan have also invested in Lenskart. In March

2018, Wipro’s Chairman Azim Premji invested ₹4 crore in the group, taking the
valuation of the company to ₹3,000 crore.

In 2018, the company became profitable, EBITDA positive (EBITDA).

LOYALTY PROGRAMS IN LENCART

Now a days lenscart runs there Lenskart Gold Membership loyalty program. In
which they offer Buy 1 Get 1 Free on Eyeglasses & Sunglasses! Share with your Friends &
Family. If you become a Lenskart Gold member and get the VIP treatment everytime you
shop. Lenskart Gold is a loyalty plan that gets you the the most exclusive offers such as the
privilege of BUY 1 GET 1 for a whole year and much more! Valid on Vincent Chase,
Lenskart Air, New Balance, Fossil, John Jacobs, Hooper & Computer Glasses

Membership is valid for 365 days from the date of purchase.

✓ Share Membership with friends and family by sharing your phone number with them. This phone
number will also act as your membership number.
✓ Buy 1 Get 1 Free is valid on Vincent Chase, Lenskart Air, John Jacobs, Hooper & New Balance (for
Eyeglasses & Sunglasses).
✓ Extra 10% Off on Fossil Eyeglasses with Membership
✓ Extra 10% Off on Aqualens & Aquacolor Contact Lenses with Membership
✓ Buy One Get One can be availed on Eyeglasses+Sunglasses / Eyeglasses+Eyeglasses /
Sunglasses+Sunglasses.
✓ Membership benefits can be availed 2 times a month.
✓ Membership benefits are applicable across App, Website , 1200+ Stores & Home Try-On services.
✓ Membership cannot be returned or refunded.
✓ Both products need to be added in cart to avail Buy One Get One.
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