The ICICI Bank will launch its loyalty card (codename Honey) through a new independent division that is being planned in a joint venture with Nectar, the UK's largest reward programme.
"ICICI has already made presentations to HLL and HPCL among others to come on board," industry sources said.
Confirming the move of the Tata group, Tata Industries Managing Director Kishor Chauker said that the group was looking at launching credit card first as a prelude to the loyalty card.
"The loyalty card will not only take into account the sales from the Tata group companies but also include other companies with a wide range of products and services," he said. For the credit card initiative, the group was in talks with the State Bank of India and GE.
Although Chauker declined to comment further, industry sources said the group was in discussion with Apollo Hospitals, IndianOil, Indian Airlines and Spencers among others to take them on board as partners.
They added that the loyalty card might have the prefix "Indi" and will chase the target of a million members in a few years. The card would initially be launched in eight major cities.
This is a big move as until now the loyalty cards are restricted to either a sole member or between two parties. For instance, Shoppers Stop has tied up with Citibank for the First Citizen loyalty programme and there are a few run by the oil companies. Essentially, these are all co-branded cards.
Currently, the oil companies have managed to garner the highest number of loyalty members nearly one million.
"However, with the coming together of various business groups on a single platform the customer is more empowered and can use their loyalty programmes as cash. They need not get tied down to one entity and can redeem points against any purchase instantly," said Zaid Farooqui who is heading operations for Tata's credit card/loyalty venture.
Observers feel that this could prove to be a potent marketing strategy for both the Tatas and ICICI Bank as both would get a boost in business in their core areas, thanks to the enterprising loyalty programme. For instance, Tata has retail presence in gold, watches, automobiles and lifestyle shopping among others through Tanishq, Titan, Fastrack, Tata Motors and Westside.
According to a senior marketing head, until now most loyalty programmes have been limited as they have been restricted to a single relationship and most consumers wait for a long time to redeem the rewards.
In the West, some companies have experimented with what is called "experiential programmes" that seek to offer benefits in terms of unforgettable adventures such as a hot air balloon ride, safari holidays and the like.
However, what has proved to be the winner is the Nectar model that has brought on board several partners such as Viking Direct, Brakes Foodservice solutions, Hertz, Sainsbury, EDF Energy, Magnet Trade and Dulux among others.
