BUSINESS CONTEXT AND OBJECTIVE
A leading automotive brand was grappling with challenges in retaining customers beyond the
second paid service. The company observed a decline in customer engagement, low penetration of parts and
accessories sales, and limited direct interaction between the brand and its customers. These issues were
contributing to reduced customer loyalty and low transaction frequency. The objective was clear: To design
and implement a comprehensive loyalty program that would reduce customer churn, boost service revenue and
foster long-term relationships.
OUR SOLUTION-ING APPROACH
To address these challenges, we developed a subscription-based loyalty program tailored to
the brand’s unique needs. Our strategy involved creating a self-sustainable model that extended value
beyond OEM transactions, ensuring ongoing customer engagement.
Tailored Loyalty Design: We introduced a loyalty program that was not solely dependent on transactions
but also created a robust ecosystem of value-added services. This subscription model provided consistent
engagement and rewards, encouraging customers to stay connected with the brand.
Value-Driven Rewards: We offered an extensive range of rewards, including discounts, exclusive access,
and personalized relationship initiatives. These rewards were designed to enhance the ownership
experience and incentivize customers to remain active within the program.
Direct Customer Engagement: To strengthen the relationship between the OEM and customers, we
established regular communication channels, offering personalized messages and updates aligned with
customers’ interests and vehicle lifecycle stages.
Driving Transactions: The program incentivized frequent interactions through services and accessories,
increasing the number of customer touchpoints and driving additional revenue opportunities.
ACHIEVEMENTS
The loyalty program was a resounding success, resulting in:
2 million subscribers acquired in 5 years.
23% reduction in customer churn among program members.
58% increase in service revenue among members versus non-members, generating an additional INR 1,811
million (USD 22 million) in revenue from services and accessories.
CONCLUSION
This case study highlights how a strategic loyalty program can significantly improve
customer retention and revenue for a leading automotive brand. By focusing on personalised engagement,
value-driven rewards and consistent communication, we transformed the customer experience and delivered
sustained business growth.
