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September 2012

Innovation in Loyalty Marketing, International

The Initiative

In the intensely competitive Indian two-wheeled vehicle market, Hero MotoCorp enjoyed strong market share but faced constant challenges from other well-established competitors. To adapt to the changing competition dynamics of the fast-growing Indian economy, Hero turned to its loyalty program to grow retail sales and help spread word-of-mouth.

Ten years ago, Hero created Hero GoodLife, a dealership-level customer relation- ship program. GoodLife focused on engaging customers, generating stakeholders, and generating word-of-mouth referrals. In keeping with the GoodLife philosophy, Hero Motocorp conceptualized GoodLife Utsav as a national-level month-long retail activity under the GoodLife program.

Utsav was created to take the relationship with retail customers beyond just the product. Utsav was rolled out immediately following Diwali (one of the biggest festivals of India), to “continue the celebration” with Hero. During the month-long campaign, members earned both hard and soft benefits, which included an enrollment gift, bonus points for bike referrals and accessory purchases, special recognition for contest winners, and personal accident insurance valued at 100,000 rupees (about $1,800).

To add value and drive participation, dealers joined in by offering ad-hoc events like musical nights or special movie screenings. Program collateral was created centrally, but printed locally by dealers. Rewards were also issued at the dealer level, which reduced logistics costs and challenges. Utsav was supported by online and offline initiatives which included program administration, a software system able to capture member transaction data in real time, and traditional media.

Multiple levels of engagement were deployed including transaction-based rewards, exclusive event invites, personal accident insurance, service continuity bonus, transaction benefits on special occasions like birthdays, anniversary, quarterly newsletters and interaction through a program website.

The Results

During the one- month campaign, Hero’s sales were 28% higher than the previous year. Program membership renewal was also up by 30%. Apart from driving transactions, the program also engaged members exemplified by a surge in dealership visits, activity participation and gift redemption.

Voice of the Voters:

  • “Nice use of experiences. Instant rewards and bonuses make this a well-rounded, multi-channel campaign.”
  • “A good mix of tangible and intangible benefits, many of which are unique to Hero MotoCorp, and few of which are rooted in discounts.”
  • “An excellent outreach program.”

2012 COLLOQUY Loyalty Award: Hero MotoCorp