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Marketing - Strategy
Whirlpool `wishes' customers well

Sravanthi Challapalli

Loyalty programme goes beyond discounts

Chennai May 28 The way to a consumer's heart is making sure her wishes are fulfilled. And playing Fairy Godmother comes easily to Whirlpool as it tests Magic Club, a loyalty programme it started a few months ago.

The company's General Manager (Brand Marketing), Mr Sukhpreet Singh, told Business Line that they aimed to build a long-lasting relationship with the consumer that went beyond discounts. As a result, the reward points are not called `points' but `wishes' and these include discounts and incentives not only on its products but at fitness centres, florists', adventure camps and invitations to previews of movies.

Magic Club has managed to garner 10,000 customers in its eight months of existence. By virtue of its membership being open only to those women who have bought a certain class of goods (the higher-end refrigerators, washing machines and microwave ovens), the company has seen customers upgrading to these brands to avail themselves of the `wishes'.

The rewards scheme is available only in the four metros and Bangalore but will be taken to a few more cities by the beginning of the festive season, Mr Singh said. Right now, Magic Club is a rather elite affair as it's in a test phase and the company is focusing on the quality of the benefits it offers, in terms of products, after-sales service and lifestyle incentives.

A customer's `wish' is granted when she notches up a minimum of 750 reward points. Purchase of a product, accessory, every reference of a potential customer - each activity adds a 100 points. Whirlpool has tied up with a number of brands, including Hidesign, VLCC, Kohler, and some designers whose products and services Magic Club members can avail themselves of. It is also mulling a reciprocal partnership with some of these brands whereby their customers can get incentives on Whirlpool products. The membership is open only to women.

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