Customer Loyalty Program in Strans Logistics

A Summer Training Project Report

Submitted in partial fulfillment of the requirements for the award of degree of

BACHELOR OF BUSINESS ADMINISTRATION

2015 – 2018

Submitted by: Guided by:

Kiran Negi JYOTIKA ANAND

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 SELF DECLARATION OF STUDENT

I hereby declare that the project work done by me titled “Customer Loyalty
Program” under the guidance of CFA. JYOTIKA ANAND, lecturer St. Andrews
Institute of Technology & Management, Gurgoan, is an authentic record of my
own work.

This project was undertaken as a part of the major project as per the
curriculum of Maharishi Dayanand University, Rohtak for the partial fulfillment of
BBA from St. Andrews Institute Of Technology & Management, Gurgoan, I have
not submitted the matter embodied here in this project for the award of any other
degree or diploma.

Date: 30, November, 2017 Signature:

Place: Delhi Name: Kiran Negi

University Enrollment No.:5023378

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 CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the summer project titled “Customer Loyalty Program” is
an academic work done by “Kiran Negi” submitted in the partial fulfillment of the
requirement for the award of the degree of Bachelor of Business Administration at
St. Andrew Institute of Technology and Management, GURGOAN, under my
guidance & direction.

To the best of my knowledge and belief the data and information presented by her
in the project has not been submitted earlier.

Signature:

Name of the Faculty: CFA. JYOTIKA ANAND

Designation: ASSOCIATE PROFESSOR

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 ACKNOWLEDGEMENT

This project on “Customer Loyalty Program in Strans Logistics” has been

successfully completed with the assistance of my project guide CFA. JYOTIKA
ANAND I have benefited a lot from the support and suggestions given to me by
my mentor.

I would also like to place on record my gratitude to all the people whose
continuous cooperation and support have gone a long way to the enrichment of this
project.

Last but not the least I would also like to thank my friends and relatives without
whose support completion of this project would have been impossible.

Name: Kiran Negi

Signature:

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 ABSTRACT

The project aims at understanding of consumer loyalty programs Customer

Loyalty presents a paradox. Many see it as primarily an attitude‐based
phenomenon that can be influenced significantly by customer relationship
management initiatives such as the increasingly popular loyalty and affinity
programs. However, empirical research shows that loyalty in competitive repeat
purchase markets is shaped more by the passive acceptance of brands than by
strongly held attitudes about them. From this perspective, the demand
enhancing potential of loyalty programs is more limited than might be hoped.
Reviews three different perspectives on loyalty, and relates these to a
framework for understanding customer loyalty that encompasses customer
brand commitment, customer brand acceptance and customer brand buying.
Uses this framework to analyze the demand side potential of loyalty programs.
Discusses where these programs might work and where they are unlikely to
succeed on any large scale. Provides a checklist for marketers.

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 TABLE OF CONTENT

Sr. No. Particular Page No.

1 DECLERATION 2

2 CERTIFICATE 3

3 ACKNOWLEDGEMENT 4

4 ABSTRACT 5

5 CAMPANY PROFILE 7

6 CHAPTER 1: INTRODUCTION 13

7 POINTS PROGRAMS 14

8 SPEND PROGRAMS 16

9 TIERED PROGRAMS 17

10 PAID PROGRAMS 19

11 PUNCH PROGRAMS 20
10 TIPS FOR LAUNCHING A REWARD
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PROGRAM
13 WHY ONLINE REWARDS PROGRAMS FAIL 25

14 PROMOTING YOUR REWARDS PROGRAM 25

15 HOW TO MEASURE CUSTOMER LOYALTY 26

16 CUSTOMER LOYALTY TOOLS AND APPS 28

BENEFITS OF CUSTOMER LOYALTY
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PROGRAMS

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 Company Profile

STRANS stands for –

“SWIFT & SAFE TIMELY RAIL ROAD AIR & SEA” Logistics.

OUR MISSION is to provide swift and highest quality of logistics services

along‐with business transparency. Our in‐depth industry knowledge and dedicated
24x7 services, we have been successfully able to provide worldwide integrated
logistics services requirements to meet our customers.

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OUR VISION and POLICY

Customer service is the prime vision of the company. We are not small for big
customers and are not big for small customers.

OUR POLICY is to respect and appreciate the customer’s requirement. We

endeavor to provide our customers with the highest quality and cost-effective
services through constant innovations in the field, enabling us to accomplish
successful, long run business relationships.

Management Team, established and managed by a team of entrepreneurs with in-

depth understanding and expertise in the Freight Forwarding and
Logistics domain. Together we have created a professional and efficient freight
forwarding services outfit.

AS A COMPANY, our business operations are led by Industry Experts. Their

valuable experience of the trade assists us in preparing a feasible logistic plan for
every type of project. Catering to customers’ specific business and expansion
plans, our expertise lies in offering completely customized solutions as demanded
by them. We operate with a closely knit agency networks located across the
country as well as overseas providing our clients expedited services anywhere at
any point of time.
STRANS LOGISTICS is run by team of motivated professionals who understand
the core concepts of projects and the critical aspects of completing them on time by
meeting the delivery deadlines. Our experience, education and training in this field
enable us to excel beyond customer satisfaction.

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STRANS LOGISTICS, services are backed by a team of immensely talented
professionals and extensive industry experience, we offer personalized and
reliable services to our clients.

The professionals interact with the clients to discuss the execution plan of the
project and ensure that the services conform to the global standards. Over the
years, we have been successful in operating distribution centers efficiently and cost
effectively with maximum flexibility.

AIR EXPORT / IMPORT SERVICES

Fast, reliable, secure and competitive air-freight solutions for AIR Exports and - ---
AIR Imports
Flights to all major international destinations.
We handle anything from heavy plant – industrial, light domestic equipment.
Daily low cost consolidations world-wide
All-cargo carriers
Air Charters
Personal Baggage and house holdings.
Door-destination airport and door-door Packaging

SEA EXPORT / IMPORT SERVICES:

Reliable, safe, competitive sea-freight solutions for SEA Exports and SEA Imports
FCL (Full Container Load) to and from all international sea ports.
LCL (Less than Container Load)
Standard General Container, Open Top, Flat-Rack, Tanker, Reefer containers
Break-Bulk Cargo Movement by sea.
Roll-On-Roll-Off
Out-of-Gauge cargo
Hazardous cargo shipment
World-Wide Import/Exports including Cross-Trade shipments.

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Custom Clearance Services

 Handling entries by integrated software support

 All customs formalities are handled including (but not limited to) CFSP
 IPR (Inward Processing Relief)
 OPR (Outward Processing Relief)
 Temporary import/exports
 Warehouse entries
 EC returns (Intra-states)
 Vehicle / Courier / Gateway
Domestic Transport by Rail Road and Air, Warehousing, Distribution and
Courier Services
 Reliable, safe, competitive Inland Road Transport and Rail solutions

 FTL (Full Truck Load) by Rail or Road LTL (Less than Truck Load / Part
Truck Load) by Rail or Road
 General Container movement by Rail or Road
 Flat Track movement by Rail or Road
 Refrigerated Goods movement by Rail or Road
 Specialized Cargo / Project movement by Rail or Road
 General Warehouse and Custom Bonded Warehouse Services
 Local Distribution and Door Delivery Services
Domestic Courier and International Courier Services
 Reliable, safe, competitive Inland Road Transport and Rail solutions

 FTL (Full Truck Load) by Rail or Road

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One of the world’s growing Logistics Company, provides industry logistics
and supply chain solutions for large and medium-size national and
multinational companies.
Its employees are dedicated to delivering effective and robust logistics and supply
chain solutions across a variety of sectors where STRANS applies its operational
expertise to provide best-in-class services across its integrated network.

STRANS LOGISTICS, operates in a multicultural and global environment.

Its aim to attract, motivate and retain the best people in our industry, whatever their
background.
STRANS LOGISTICS, offers competitive incentive packages, benefits and an
exceptional culture for career building. Start your career with STRANS and
become part of our global team of passionate supply chain professionals.

STRANS LOGISTICS, is proud to be an equal opportunity work place employer.

where All the qualified applicants will receive consideration for employment
without regard to race, color, religion, gender, gender identity or expression, sexual
orientation, national origin, genetics, disability, age, veteran status or any other
characteristic.

We are an Equal Opportunity Employer of Minorities, Females, Protected

Veterans, and Individual with Disabilities.

VISION & BUSINESS POLICY, we envision our company to be the leading

logistics service provider globally, in due course of time and carry forward the
name of our organization as ‘sitting on tongue’ name with the mention of the word
logistics.

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STRANS LOGISTICS policy is to respect and appreciate the customer’s
requirement. We endeavor to provide our customers with the highest quality and
cost-effective services through constant innovations in the field, enabling us to
accomplish successful, long run business relationships.

COMPANY CULTURE

Entrepreneurship

They believe in providing people opportunities to do all that they can and be what
they want to be.

Respect for all, being respectful towards all whom they meet during our day-to-day
professional interactions.

Passion for performance

Their journey would not have been possible without an enduring, bordering on
fanatical focus on performance. This is what they also seek in our employees – a
keen focus on outcomes through performance excellence.

Teamwork

They value “the power of many” and look to harness collective synergies through
collaboration and teamwork.

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 CHAPTER-1: INTRODUCTION

A Customer Loyalty Program is a rewards program offered by a company

to customers who frequently make purchases. A loyalty program may give
a customer free merchandise, rewards, coupons, or even advance released
products.

Customer loyalty programs are a way of rewarding your repeat customers and
encourage them to stay loyal (hence the name). A good loyalty program is not just
about giving away stuff to repeat customers, rather it’s a channel to strengthen
customer relationships.

If your value proposition aligns with your business and you keep your program
simple, you’ll generate more sales and increase brand loyalty.
There are some customer loyalty programs as -

1: Points Programs

2: Spend Programs

3: Tiered Programs

4: Paid Programs

5: Punch Programs

6: 10 Tips for Launching A Reward Program

7: Why Online Rewards Programs Fail

8: Promoting Your Rewards Program

9: How to Measure Customer Loyalty

10: Customer Loyalty Tools and Apps

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POINTS PROGRAMS

Loyalty point programs let customers accumulate points that they can redeem for
rewards or free products/services. They’re so easy to set up that 73% of loyalty
programs are points based, making this the most popular type of loyalty program
by far.

A lot of ecommerce businesses struggle to get customers in the virtual door. If

that’s a problem that’s keeping you up late at night, referral marketing can help.
And you can take that to the max with points-based loyalty programs.

Not all points are tied to money transactions – some may be earned from social
sharing, emails, or other actions customers take to drive traffic to your site. In fact,
your loyalty program shouldn’t be purely transaction-based. Get your best
customers to send you more business and reward them for helping you.

IHG keeps their rewards site user-friendly and provides plenty of ways for
members to earn and redeem points. Travel and hospitality companies have some
of the best loyalty programs around. Study them to improve yours.

BOTTOM LINE ON POINTS PROGRAMS

Points programs are the most popular loyalty programs. They’re easy to use and
can encourage specific consumer behaviors.

Pros

 Tangible value for the consumer

 Flexible and customizable
 Can drive desired consumer behavior

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  Easy to understand
 Lots of loyalty program apps and software to choose from
 Avoids price discounting

Cons

 Point program operation can be confusing

 Need to be clearly explained
 Might require a catalog or separate redemption site
 No “instant gratification” (gamification can fix this)

Thanks to the ease of use and customizability of points programs, they’re perfect
for most ecommerce business, regardless of size or target market.

SPEND PROGRAMS

In spend programs, customers get loyalty credit for the amount they spend at your
business. You can use similar discounts without an upfront email capture to keep
customers coming back, but you’d lose out on a lot of valuable information (and a
captive audience!). This kind of program is very easy to understand, create, and
maintain. They’re an effective way to cut your churn rate and increase transaction
amounts.

Fawn & Forest Rewards

Although the page layout could be better, fawn & forest beautifully explains how
their program works. Design can make a major difference, however. Don’t waste
space like this on your explainer page. Make sure you’re optimized for mobile
AND computer use.

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THE SKINNY ON SPEND PROGRAMS
Spend programs are a great option for encouraging increased transaction values
and reducing high churn rate. The simplicity makes it easier to get customers to
sign up.

Pros

 Tangible value
 Intuitive rewards system
 Encourage repeat business
 Increase transaction amounts
 Easy to set up
 Easy to maintain

Cons

 May not let you gather as much data as other types of loyalty programs
 Can decrease perceived value of products/services
 Higher cost to your business

Spend programs are a great option for retailers in fast fashion or other, similar
industries that rely on high numbers of transactions and retail products with high
markup.

TIERED PROGRAMS

An improved version of points programs, tiered loyalty programs give customers

rewards based on different levels of spending or points. They are growing quickly
in popularity because they can be highly targeted and customized easily, and
customer segments can be target pre and post-payment In some tiered programs,

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customers are offered gifts, free products/services, privileges, or exclusive
products.

GILT Insider

To introduce their Insider program, the GILT Group posted a press release. Smart
move, and a great way to let existing customers know about the program,
especially if you link to it on your homepage.

Sephora

Sephora clearly illustrates the benefits of each tier in a fun and easy to understand
way. Scroll down the page for each tier, and you’re presented with beautifully
illustrated reasons to signup – the most attractive level is, obviously, the VIB
Rouge.

Best Buy

Best Buy provides an easy to understand chart for potential rewards members,
complete with details on how to qualify for each level.

Bulletproof Coffee

Bulletproof coffee makes their program tiers easy to understand, although the point
quantities might be a big daunting for some customers.

Need to cut your churn rate, save on your loyalty program expenses, and target
specific segments or actions? Spend loyalty programs might be the right solution –
especially if you’re in the luxury market.

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Pros

 Decreases churn rate for most valuable customers

 You don’t invest in low-end customers (saves you cash!)
 Uses gamification to motivate customers to higher levels

Cons

 Unlikely to draw new site visitors into joining on the first visit
 Not universally appealing (great for targeted campaigns, but not as a general,
stand-alone strategy)
 More complicated to set up

Tiered programs are great choices for e-commerce service providers, luxury
retailers, and companies in the travel and hospitality industry.

PAID PROGRAMS

Paid loyalty programs provide an exclusive feel by incorporating a monthly or

yearly fee that members pay for access to special services, discounts, or unique
opportunities. Although the customers these programs draw may require more
coddling, the increased transaction value is substantial. The program’s barrier to
entry draws prospects further into your marketing funnel, and provides an
incentive to continue making purchases on your site.

Amazon Prime

To overcome the barrier to entry, Amazon Prime offers a 30-day free trial for new
members. They’ve also found ingenious ways to market the program as part of the

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checkout process, on pop-ups, and even incorporating “try prime” into the Amazon
logo on every page.

Newegg Premier

Newegg has largely copied Amazon’s placement techniques for program

enrollment, but they’ve mastered the visual approach to benefits with an attractive,
flat design and intuitive images.

ARE PAID PROGRAMS WORTH THE MONEY?

A fee to join is the hallmark of this loyalty program, and it’s a two-edged sword. It
gives you the chance to cultivate an extra revenue stream, higher transaction
values, and highly-targeted campaigns, but the value may not be apparent to all
customers.

Pros

 Higher spend per customer

 Easy to understand
 Provides additional (ancillary) revenue stream
 Highly-targeted
 Value is obvious to subscribers

Cons

 First-time visitors most likely won’t see value

 Barrier to entry may dissuade some customers
 May require increased customer service efforts

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Paid programs are perfect for larger retailers, and also make a smart pick for luxury
product and service sites. Information businesses can also make good use of this
loyalty program model.

PUNCH PROGRAMS

One of the simplest and oldest loyalty program designs, punch programs are
extremely popular in brick and mortar businesses, but their adoption in e-
commerce isn’t as prevalent. The idea behind punch cards is that customers are
rewarded for purchasing a particular product or service with “punches.” One punch
is given per purchase. After a set number of punches are collected, they receive a
product or service of equal or lesser value free of charge.

Hotels.com Rewards

Simplicity in action. This is easily one of the best punch card rewards programs in
e-commerce, with a beautiful explainer page.

L’Oreal Gold Rewards

Another beautifully simple program, but one problem – if L’Oreal weren’t such a
household name, that sign-up form would send customers running. It’s asking for
way too much.

WHAT ARE PUNCH PROGRAMS GOOD FOR

Punch programs are intuitive, easy to use and track, and low cost. Unfortunately,
they tend to be targets for fraud, though. If you can track your customers, they
make a great option for a very basic loyalty program.

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Pros

 Easy to track online (potential advantage over brick and mortar punchcards)
 Familiar program model for customers
 Can be highly targeted or appeal to mass customer base
 Low implementation cost

Cons

 May decrease perceived product/service value

 Common target of loyalty program fraud

A great choice for new loyalty programs, but tracking data and preventing fraud
can be an issue. Ideal for experience-based industries like travel, although they
work well with consumer goods that are high value and high consumption, too.

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10 TIPS FOR LAUNCHING A REWARD PROGRAM

Launching a reward program is an important step in growing your business, and

one you don’t want to mess up. Keep in mind these basic guidelines for your
loyalty program from our earlier post on starting customer loyalty programs:

1. Keep it simple

If your program is a hassle to use or difficult to understand, it won’t be used.

Simplicity and predictability is key to creating a trust-based customer experience.

2. Start with your existing mailing list

You already have loyal customers. They like you enough to join your mailing list.
Use that to your advantage and make them feel special at the same time by offering
them a chance to be the first members of your loyalty program. You can iron out
the kinks and make sure your program is perfect with the help of an audience you
know will be receptive.

3. Make it easy to join

Ask only for the information you really need. Loyalty programs can be great lead
capture incentives, but no one wants to share their life story with an ecommerce
retailer.

An email capture, and maybe your customer’s name and birthday (if you offer
something special to help them celebrate, like a discount), are all you really need at
this point.

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4. Make earning rules simple

If no one understands how to earn in your program, they may ignore it. The
simpler the rules are, the more likely your customers are to actively try to earn.

5. Make spending rules simple

Once again, simplicity is huge. If customers have to jump through hoops to spend,
they may feel that your loyalty program isn’t such a great deal, after all. Even if
they loved the simplicity of earning, and your company.

6. Launch in digestible chunks

Noticing a theme here? Don’t overwhelm your program members. Launch the
program in easy-to-understand chunks so that each part of it feels like a natural
progression from the previous step.

7. Don’t overwhelm customers with options

Keep your rewards transparent, worthwhile for your customer, and easy to use or
acquire.

8. Have your end goal in mind

You started your business with a solid foundation – a business plan that helped you
see the viability of your vision and a clear path to your goals. The loyalty program
deserves equal attention. It’s the path to keeping your customers, and your bottom
line profitable.

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9. Use automation

You focused on simplicity for the customer. Don’t forget simplicity for you, too.
Automation can reduce the workload on your end, while helping your customers to
feel appreciated and in touch with your business. That personal touch is important.
Speaking of which…

10. Make it about your customer, not about money

From the rewards you offer to the way your program feels to the customer, make it
about them. If you’re only thinking about earning on your end, you’ll miss the
mark and you might destroy your credibility with the customer in the process.
People crave a personal connection, even (or perhaps more so) in e-commerce.

BEFORE YOU LAUNCH

Keep it simple. Start with your existing customers. And most importantly, make
your program about your customers, not your bottom line.

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WHY ONLINE REWARDS PROGRAMS FAIL

Reward and loyalty programs sound like the key to instant success so far, but most
fail spectacularly. According to Cap Gemini, 89% of social media sentiment
regarding loyalty programs was negative.

Sure, people are more likely to talk about things they don’t like, but that’s a
startlingly high statistic. That gives you a few places to strengthen your loyalty
program before you launch it, but there are more steps you can take to make sure
it’s a hit, too.

How much do you like colonoscopies? Yeah, not many people could call them
enjoyable. Make sure your sign-up form doesn’t feel like one to your customers.
Asking for too much information is something that 38% of people feel loyalty
programs do, according to Bond Brand Loyalty. Coupled with the lack of
personalization and dynamic loyalty program content that plagues many loyalty
programs, you’ve got a recipe for failure.

PROMOTING YOUR REWARDS PROGRAM

You’ve invested a lot of time and effort into creating a worthwhile loyalty
program, but let’s be honest. If no one knows about it, it might as well not exist.

You need to promote your loyalty program to really see any revenue from it. You
can do that via email, social media, or your website. The best strategy, however, is
to combine the three.

SPREAD THE WORD

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If no one knows about your rewards program, it’s not going to work. Promote
heavily and intelligently to your own email list first, and then via social media and
on your website.

Marketing Your Customer Loyalty Program to Your Email List

Earlier in this guide, I mentioned that you should start with your own mailing list.
Don’t forget to do it. At the same time, actively work to grow your mailing list and
encourage new members to join your loyalty program, too.

Publicizing Your Online Store’s Rewards Program on Social Media

Once you have the kinks worked out and are confident that your program will be a
hit, start advertising it on social media. Focus on platforms that your demographic
gravitates towards (for example, Pinterest tends to be dominated by women, while
Reddit is predominantly a men’s platform).

Using Your Website to Promote Your Rewards Program

On your website, you’ve got a relatively captive audience. The people on your site
are already interested in your company. Don’t get lazy, though. Offer an opt-in
freebie, discount, extra points, or some other incentive to entice site visitors to join
your membership program.

HOW TO MEASURE CUSTOMER LOYALTY

You can tell by the look in your significant other’s eyes what mood they’re in.
Brick and mortar store owners can tell how customers feel based on comment
cards and conversations with customers. But ecommerce is a different world.

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CUSTOMER RELATIONSHIP METRICS
Track vital loyalty metrics to judge how your loyalty program is performing and
how much your customers love your company. Stats like churn, response, and
retention rate can keep you on the right track to a strong customer relationship.

Keeping track of your relationship with your customers isn’t an option. It’s a
requirement. Track your customer relationship’s pulse with these metrics:

Customer Lifetime Value

Many ecommerce entrepreneurs slowly leak profitability by spending more per

customer than they are worth. Once you figure your product profit margin, add
in marketing, fulfillment, shipping, and staffing costs your bottom line can get
away fast.

CUSTOMER LOYALTY TOOLS AND APPS

Now that you’ve mastered the basics of loyalty programs, it’s time to find a loyalty
app or software program to make creating your program that much easier. Keep
your eyes on our blog for more.

 Sweet Tooth Rewards

 Spark Base
 Loyalty Lion
 S Loyalty
 Antavo
 Loyalis
 500friends

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Keep in mind that not every loyalty program app works for every platform. Before
you get your heart set on one, check to make sure it’s compatible with your e-
commerce site.

LOYALTY PROGRAM BENEFITS

Loyalty programs improve customer retention and provide incentives for your
customers to buy. ...Loyalty programs can help do this by increasing that number
of repeat customers and also increasing the amount of repeat purchases.

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 CONCLUSION

A loyalty program allows creating a close relationship client -companies,

creating an interactive environment. This enables the process of changing
customer behavior, behavior which is difficult to predict, as customers are
skeptical of any firm in the market that makes such offers. Online sales are
unlike traditional sales sites built in the physical market, because we have a
lack of direct contact with the buyer and the possibility that buyers see the
product physically. In terms of information asymmetry are more risks in
online trade. All these factors make the trust crucial in electronic commerce
because it is a high-risk transaction.

The research is descriptive and explanatory about variable and builds a broad
picture of the relationship marketing and online marketing. Data were
analyzed using different statistical methods.

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