Customer Retention through Loyalty Program at Greenply Industries

Code : MM0087

Year :

Industry :-

Region : Asia

Teaching Note: Available

Structured Assignment : Not Available

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BACKGROUND NOTE: The history of GIL dates back to 1984, when Rajesh Mittal laid the foundation of a saw-mill which later became the largest manufacture of plywood in India . It was officially incorporated as a plywood manufacturing company in the year 1990..

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LOYALTY PROGRAM AT GREENPLY: To get data about sales and customer purchase behavior, in the year 2015, GIL launched two Loyalty Programs , Green Samriddhi and Green Access. It planned to use the data generated from these loyalty programs to create loyalty predictive models. Akhilesh was aware of the benefits of the loyalty programs and wanted to get the maximum out of them...

THE CHALLENGE: The loyalty programs were initially successful because they started attracting customers, but soon the company started incurring losses because of inadequate sales/purchase data and unethical practices at the dealers/sellers and/or at the buyers’ front. The products were sold by the dealers and retailers, but the details about the customers who were purchasing these products were not collected. Akhilesh wanted to have customers’ contact details, product preferences, demographics, nature of the work..

LAUNCH OF MOBILE APPS: In the year 2020-21, the company launched the mobile apps using which carpenters, architects, and interior designers could scan a QR code while making the purchase. The QR code would automatically detect the size and the width of the product and assign reward points for it on the application. The customer could instantly use the reward points either for the purchase of a product or redeem cash. However, they could not use the whole reward at one time. Only 80% could be used and the remaining 20% was kept to induce them to make repeat purchases..

ROAD AHEAD: The launch of the mobile applications was thought to be an effective way to control the frauds associated with the loyalty programs. The frauds were related to providing wrong data about customers leading to benefits of the loyalty programs going to the wrong people. The mobile application allowed capturing real time data of purchases leading to earning loyalty rewards points by the right customers. The mobile applications were expected to aid in retaining customers as well as give them a sense of belonging with the company..

Exhibit I: GIL Milestones
Exhibit II: GIL Market Share in the Indian MDF Sector
Exhibit III: Market Cap, Sales Turnover and Net profit of Greenply Compared with Other Players in India (FY2021)
Exhibit IV: Steps Involved in Green Samriddhi
Exhibit V: Steps Involved in Green Access

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