Honda Motorcycle and Scooter India (HMSI), which Thursday launched a digital loyalty programme, has said it will not join the discount race as it is looking for a long-term engagement with its customers.
The statement comes in the wake of most automakers wooing customers with steep discounts to gain volumes during the ongoing festival season.
"Discounts will deteriorate the value of our products and more importantly it will also upset the customer who has purchased the product before the discount was announced. So, it is not a good idea and we don't want to join the discount war," said Minoru Kato, president and chief executive officer, HMSI.
The programme named Honda Joy Club is open to both new as well as the existing 39 million customers of the company, at a cost of Rs 299. However, it can be availed for free till November 30.
"Discount is only to the customers. A loyalty programme is a long-term engagement with customer, to maximise a customer's satisfaction. That is our direction," said Kato.
YS Guleria, vice-president for sales and marketing, HMSI, said the last two months were not that strong from the demand point of view.
Also Read
"In such kind of market scenario, there would be some reactions which are there in the market. But as we understand, we need to be more resilient and patient, rather than being reactive, and add more value to the customers, rather than going into cash discounts," he added.
Guleria said it's the first time that a 100 per cent digital loyalty programme is empowering customers with choice.
"Now Honda customers enrolling on Joy Club programme can earn virtual Honda currency at both purchase and subsequently every service visit too," he added.
Benefits range from complimentary Kisan Samadhan Services to personal accident insurance cover worth Rs 1 lakh for three years.
Offers under the redemption include discounts on hospitality, travel, healthcare, apparel, F&B, entertainment, personal care, insurance, among others.
Honda's agrarian customers can redeem Honda currency to buy IFFCO Kisan Samadhan services as well, the firm said.
Kato said Joy Club is unprecedented in its concept, unparallelled in its scale and unmatched in the rewards for the customers.
HMSI currently commands 59 per cent market share in the scooter segment and 14 per cent in the motorcycle market. India accounts for 32 per cent of the Honda's global two-wheeler sales.
Disclaimer: No Business Standard Journalist was involved in creation of this content