Last twenty-four hr menses when I got my ICICI credit carte bill, an interesting respect was enclosed along amongst the bill. The respect stated that from June 12, the redemption of my vantage points which was accumulated because of the " Loyalty Program" of ICICI banking concern volition attract a accuse of Rs 99 + tax.
Oh actually .... What the hell !!
This comes from 1 of the largest marketing machine inwards the Indian banking manufacture in addition to I am totally confused nearly the logic of this move. Then I come about to read an article inwards Business Standard in addition to was happy to know that fifty-fifty the journos doesn't convey a clue equally to what is happening.
First things first.
ICICI banking concern inwards a means pioneered the concept of rewarding the consumers for their banking transactions. Where vantage points existed for credit cards, ICICI introduced vantage points for savings banking concern besides in addition to for that they partnered amongst Payback which facilitate the vantage management.
In my understanding, vantage programs are considered an effective means to increase build loyalty. It is a mutual method used past times marketers to vantage loyal in addition to regular customers. There are 2 sides to rewards.
Firstly it rewards the existing customers to purpose to a greater extent than of the service or production in addition to also it acts equally an incentive for novel customers to last loyal to the product. The thumb-rule is that the rewards must last enticing plenty to encourage the client to encounter value inwards existence loyal.
Here the smart brains of ICICI banking concern loyalty plan has decided to accuse the customers who wants to redeem the loyalty points earned.
Does it build whatever feel ???
First the banking concern says that you lot volition last rewarded amongst Payback points if you lot purpose the credit carte in addition to uses vantage points equally an incentive to instruct a loyal client in addition to and hence accuse the client when it comes to actual redemption. It is short-termism at its best.
You are going to accuse the customers for existence loyal ?? Common love marketer , you lot must last living inwards the seller's marketplace position which is dead a decade ago.
Another constituent is the vantage itself. If the vantage 1 gets from the Payback was superb, in addition to hence 99 INR may last justified but what you lot instruct for K vantage points is a silicon egg beater or a Prestige LPG hose ( what a wonderful reward) for which I quest to pay additional Rs 99 + tax.
Although I convey a Payback carte , I convey never bothered to await at the points because the hence called rewards are no-rewards. So am I bothered nearly the Rs 99 charge, no because I don't intend to redeem it .
But equally a marketer, what ICICI banking concern is correct forthwith doing is defying all theories.
