The Economics of Loyalty Programmes
Loyalty Programmes in India: From Kirana Credit to Apps
India's programmes range from neighbourhood shops' informal credit to big app rewards, such as Tata Neu, Amazon Prime and airline schemes.
Local flavours.
Kirana loyalty
A trusted shopkeeper offers credit and small freebies to regulars.
Apps
Tata Neu and other ‘super apps’ reward users with points across brands.
Memberships
Amazon Prime bundles delivery and content in a subscription.
Digital wallets
Cashback on UPI apps drove early adoption.
A shared points pool
Points earned on groceries can be used to buy electronics in the same ecosystem.
Ignoring informal loyalty systems
Local trust matters.
Key takeaways
- Kirana stores build loyalty through credit.
- Super apps pool points.
- Prime is a membership.
- Cashback boosted digital payments.
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