PPT for Training to ACE | Loyalty Program | Customer Relationship Management

Maruti Suzuki Customer Relationship Programme

Importance of CRM
• Your customers are the most valuable assets in business • They are responsible for ‘making’ or ‘destroying’ the company’s wealth • Today, the service standards are almost the same with everyone and there is no unique differentiation • We must create a unique ‘differentiation’ to give more value adds and ‘something extra’ to the customer • The need is to strengthen our relationship and maintain the valuable asset: ‘OUR CUSTOMER’ & • The tool to do this is ‘CRM’ which will enable us to create and keep satisfied and loyal customers with us

Why do we need to retain the customers?

The customer today…
Getting Younger, Smarter and more Informed Has more money to spend Has many options to choose from Changes car every 3 - 5 years

Getting more difficult to retain

Future business growth to come from…

• Our ability to retain customers •Ability to accelerate replacement cycle Through upgrade to high-end products Sale of used cars • Ability to maximize revenue opportunities beyond the new car sale Service / Repairs Spare Parts Insurance Extended Warranty Accessories Finance

Defining loyalty Loyalty • Loyalty is the direct function of a happy and satisfied customer • It is the ability of the company to deliver as per the customer’s satisfaction • It is not instant and gets developed over a period of time.

Defining loyal customers
Loyal customer • A customer who gives more value to the organization and is more profitable • The loyal customer is one who will buy your product or service even when it is more expensive or at a personal inconvenience • A customer who is committed to the brand for lifetime and avail of other service offerings • The loyal customer is one who will stand up and defend your company against unfair comments • A customer who spreads positive word of mouth about the brand amongst the pier group

Don’t confuse ‘reward’ with ‘discount’ • Discount is very tactical in nature and is a short term selling technique • Discount does not earn loyalty • Discount is limited only to cash • Reward on the other hand acknowledges the association and is long term • Reward can be in ‘cash’ ‘gift’ or ‘kind’ • Reward can be consistent and can help in building loyalty

The BIG Opportunity We Have
Buys car (New/ Exchange Sells his car at True Value Buys insurance/ EW

Participate s in MUL/ Dealer events

Complete Integration Leading to More customer value
Returns for paid service

Free service visits


The Proposition…

Critical success factor 100% participation of each stakeholder Function of perceived value

Programme value For members • Rewards with no ‘extra obligation’ • Acknowledgement from the dealer and MUL – extra care • Relationship that would goes beyond business – more credibility • Extended benefits through coalition partners

Programme value For dealers: • Better customer retention leading to more value per customer • Increase in service reporting leading to better utilization of the infrastructure (manpower and material) • Increased revenue share of ‘Maruti extended products’ like MGA, MGP, Maruti Insurance….. • Another sales support function – Referrals and re-purchase • Opportunity to run tactical promotion activities with the members for product/ service push

Programme value For MUL: • Unique and unparalleled brand property • Increased dealer commitment towards MUL • Focused approach to customer retention and acquisition (referrals – another stream of sales) • Integration of all customer offerings – product and service • Last but not the least, an access to customer data

The Programme

Maruti Suzuki AutoCard Rewards Programme • A relationship programme, exclusively for Maruti Suzuki customers - both existing as well as new • Programme promise:
– Rewards to members on all their spends – Special benefits and exclusive privileges

• Citibank and Indian Oil Corporation as programme partners
– IOC has the largest retail outlets in the country – Citibank has the largest network of merchant establishments across India

Programme members earn high value Auto Points (reward points) on all their spends:
At Maruti Suzuki dealerships / service stations By purchasing fuels / lubricants from Indian Oil outlets

For shopping / entertainment through the AutoCard Value of 1 Auto Point earned: Re. 1.00/-

Conversion of Auto Points to Rewards…
At Maruti Suzuki network:

• Purchase of new car
• Services / Repairs • Accessories • Insurance and Extended Warranty • At IOC outlets:
– Refueling or buying lubricants – * Only during the first year of membership – ** Only the points earned at IOC outlets

• Point validity: 5 years (60 months) from the date of earning

Value Added Privileges • Exchange Loyalty Bonus on upgrade/ exchange of Maruti Suzuki vehicle • Free Accident Insurance Cover: Rs 5.00 lac** • Free ‘Maruti Suzuki On Road Service & Highway Assistance’ Service
– Only the TOW charges and labour charges are not charged

** Only for Credit Version members

Programme in a snapshot
• Maruti Suzuki customers become programme members by filling an application form at the dealerships • Receive Welcome Kit along with Maruti Suzuki AutoCard • Start earning reward points on all their spends • • Enjoy value added privileges Exchange reward points against purchase of a new Maruti Suzuki vehicle or for maintaining their current car

Maruti Suzuki AutoCard
• Chip embedded Smart Card • An instrument for
– Earning and storing Auto points – Member details – Car details: upto 5 cars can be registered on one card • To be used for all transactions spends/ purchases • Carries a credit limit of upto Rs 10,000/– Courtesy Citibank – Free for Lifetime

Earning of Auto Points
Points Earned on Maruti Suzuki Auto Card- Credit Version
Service/ repair / MGP

Points Earned
Every Rs 100/- spent = 6 points

Point Description (Liability Ownership)
5 points by dealer/ GP MASS + 1 point by Citibank

Maruti Insurance, MGA, EW

Every Rs 100/- spent = 3 points

2 points by dealer/ GP MASS + 1 point by Citibank MUL

Paid Service Loyalty Bonus

500 points on each paid service

Referral resulting in sale Events / Promotions organized by the dealer Exchange Loyalty Bonus Fuel, Lubricants from IOC Outlets Purchase at Citibank member establishment

1000 points Bonus Points decided as per the activity ≤5000 Every Rs 100/- spent = 1.5 points Every Rs 100 spent = 1 point

By the dealer By the dealer

By MUL 1 point by Citibank + 0.5 points by IOC By Citibank

Examples of member transaction
Spends at MUL Network: Maintenance Service
Spend on Service Maruti Pts. on Credit / Prepaid AutoCard 125 (@5 Pt / Rs 100/-) Citibank Points (Credit AutoCard) 25 (@1Pt. per Rs 100/-) Total Points on Credit AutoCard 150

Rs. 2500/-

Spends at IOC Network: Refueling the Maruti Suzuki vehicle
Petrol Purchase worth Rs. 2000/IOC Points Citibank Points (Credit AutoCard) 20 (@1Pt. per Rs 100/-) Total Points on Credit AutoCard 30

10 (@0.5 pt /Rs100/-)

Cash Transaction
• Member has the option of paying through cash and still earn the Auto Points • In such a scenario, earns only the Maruti Suzuki’s share and IOC’s share of points • Looses out on the Citibank points

Example: Cash transaction at Maruti Suzuki Network
Spend on Service Maruti Pts. on Credit / Prepaid AutoCard 125 Citibank Points (Credit AutoCard) 0 Total Points on Credit AutoCard 125

Rs. 2500/-

Talking points – Maruti Suzuki AutoCard Programme
• Exclusive rewards programme launched for its customers • Wherein you get rewarded on all your spends • Exchange Auto points while purchasing your new Maruti Suzuki car
– Or for routine car maintenance: Earn 500 points on paid service every single time

• Plus host of other privileges including referral bonus, free accidental insurance…..

Key operations

Operational Details - Focus Areas • Member Enrolment & Dispatch of Welcome Kit • Card usage by member and earning of Auto points • Exchange / redemption of Auto points by members • Exchange Bonus/ Referral Process • Functioning of MUL-CPA

Module 1: Member Enrolment

Steps involved: Member enrolment Step 1: Information to customer about the programme
– At dealership: By the sales advisors as part of sales process – At service stations: By the service advisors while registering the car for service/ repair and/ or while giving delivery

Steps involved: Member enrolment Step 2: Filling of an application form
• • Mandatory fields: – All the fields Marked in Red Documents: – New customers: Copy of invoice; PAN no./ Form 60, driving license, Copy of insurance – Existing customers: Service invoice; Copy of RC; PAN no./ Form 60, driving license Temporary card: – For earning points till the member does not receive the Maruti Suzuki AutoCard

Front side

Back side

Temporary Card

Module 1: Member Enrolment

Steps involved: Member enrolment
Step 3: Dispatch of application to Citibank 3 • All applications to be compiled and sent by AutoCard Executive to Result McCann Step 4: Application screening at Application processing 4 center- Result McCann

– – Application screening basis mandatory fields & documentation attached Application segregation- Accepted and Rejected Dispatch
• • Accepted applications to Citibank Rejected applications to dealer

Steps involved: Member enrolment Step 5: Dispatch of Welcome kit to members by 5 Citibank
– Maruti Suzuki AutoCard – Programme booklet

Card Usage & Earning of Auto Points

Key points • Transfer of points from ‘Temporary Card’ to Maruti Suzuki AutoCard
– Member to bring the card for endorsement to AutoCard Executive – AutoCard Executive to transfer the points using the Citibank EDC machine

• Earning of points:
– Member presents the card at the billing counter for making the payment for the transaction – Card swiped and points are automatically credited

Exchange / Redemption of Auto Points

Exchange / Redemption of Auto Points • Key points
– Exchange / Redemption at Maruti Suzuki Dealerships / GP MASS – Exchange / Redemption at Indian Oil outlets – EDC activation & working – Statement of Auto Points – Q&A

Details • Exchange / Redemption at Maruti Suzuki Dealerships / GP MASS
– Member to present the card at the time of paying for the transaction – Member to request the billing executive for redemption – Billing executive to debit the points from the AutoCard and complete the transaction

• Exchange / Redemption at Indian Oil outlets
– Same as above – Only points earned at IOC outlets to be redeemed – Redemption through petro vouchers with Rs50 value

Exchange Bonus
Exchange Bonus will be earned according to the age of the vehicle

Vehicle Age- in years Auto Points <1 5000

1 to 2 4000

2 to 3 3000

3 to 4 2000

4 to 5 1000

500 points for every paid service done at the Maruti Suzuki dealer workshop/MASS*. •The customer has to present his AutoCard while paying the bills of his paid service •The billing executive shall load the 500 points on every time he gets a paid service done at authorized Maruti Suzuki dealer/select M.A.S.S •The customer can redeem up to 5000 points as exchange loyalty bonus. The total loyalty bonus shall calculated as Loyalty points basis age of vehicle + Paid service points =5000

Example: Redemption / Exchange of Auto Points
•Mr. Sharma is a proud owner of Maruti Suzuki vehicle and is an Auto card member •His vehicle age is 3 years and his Auto card membership is two year old. •In his two years of membership he got his vehicle serviced twice and utilized same number of Paid service loyalty Coupons •Mr. Sharma now decides to exchange his car at true value •Because he is an Auto card member he gets entitled for additional Exchange loyalty Bonus.
Exchange Loyalty Bonus Ex Show room price of Wagon R LX Approx price of Old Maruti Suzuki 800 Points basis Net Price of Net Price of Dealer Point basis the New the paid Exchange Old Maruti age of the Wagon R service(4 Loyalty Bonus vehicle: 3 800** LX*** paid service years X 500)








Section 3: Statement of Auto Points

Carries details of Auto Points earned at MUL network, IOC outlets, Citibank outlets

Statement for Credit AutoCard is sent every month

Frequency for Prepaid AutoCard depends on usage

Module 3: Exchange / Redemption of Auto Points

Referral Process
•The member can earn 1000 Auto Points •He has to recommend a friend / family member to buy a Maruti Suzuki vehicle •The referred person comes at the dealership to buy a new car •He presents the “Smile Voucher”, to ACE at the dealer premises •Stamped counterfoil of the coupon is handed over to the referred customer •Referred customer gives the stamped counterfoil to the card member •The card member comes back to the same dealership with the counterfoil and gets 1000 points transferred to his Auto Card

Application process Flow
ACE meets Customer Customer fills the form & gives the Mandatory Documents Double check the Information (Fields in RED are mandatory) Collect the self attested Documents From the customer for :-

New Cars:
Copy of Sales Invoice Copy of Insurance Note cover PAN NO or Form No 60 (Attached with application)

Existing Cars:
Copy of Service Card Copy of insurance note Copy of RC PAN NO or Form No 60 (Attached with application

ACE sends the packet to CPA

Attach s the log sheet with the collated form to prepare the dispatched packet

Log Sheet Preparation:
Recheck & “TICK” complete information •Attached Documents •Signature •Mandatory fields •SE Code

ACE stamps the attached Mandatory documents with the dealer stamp Collates all the forms from various premises: •Work shop •Showroom •True Value Outlets

Maintain the copy of the log sheet

Staff Roles & Responsibilities

Responsibilities - AutoCard Executive
• • • • • • • • • • • Customer contact and AutoCard promotion Application Form filling and mandatory document collection Application Form checking Log sheet preparation Dispatch of application forms to Result McCann and maintenance of log book Processing of the referral vouchers Up-dation and maintenance of member records & Handling in-person member queries MIS to MUL about programme performance/ enrolment activity Functional support to other staff Training of the new support staff Supervision of the PoP and PoS stock

Thank You

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