Loyalty to tie up with chain for rewards programme

Loyalty Solutions and Research Ltd (LSRL), a company funded by ICICI Venture, is in talks with a grocery chain with nationwide coverage for its loyalty and rewards programme 'imint'.

The company already has six business partners including Bharti Airtel, Hindustan Petroleum Corporation Ltd(HPCL), ICICI Bank, Indian Airlines, Lifestyle International (P) Ltd and makemytrip.com.

Talking to Business Standard, Vijay Bobba, CEO Loyalty Solutions and Research Ltd, said, "Our loyalty programme covers almost all necessary things in life. An airliner, a cell phone service provider, a travel solutions company, banking, petrol stations, and a lifestyle mega store where dining is also available. What we miss is a grocery chain. It is one of the most essential business in the country. However, we could not tie up with grocery shops as there was no grocery shop chains with an all-India presence. This situation was there till the Reliance Retail launched its chain. We are in talks with a grocery shop chain, however, at this point of time it will not be possible to reveal any names."

However, according to company sources, Reliance Retail being the only grocery shop chain with plans to open shops across India it is likely the one with whom LSRL might tie up with Reliance Retail.

When asked if the company is looking forward to tie up with international companies for this programme, Bobba said, "We might tie up with some international company at a later stage as we can not ignore that. But that can only happen after tapping the Indian market to the full. Without covering the whole Indian market we can not think of venturing out of the country."

LSRL launched its 'imint' programme in Ahmedabad on Tuesday. The company also plans to launch its 'imint' programme in 10-12 cities by 200-end. The company has already launched this loyalty and rewards programme in Mumbai, Delhi, Bengalore, Hyderabad and now in Ahmedabad.

"During the next phase the company will launch 'imint' in cities like Pune, Chandigarh and Chennai. However, we will launch in these cities only after we have covered the state of Gujarat. Next cities in Gujarat to have this programme will be Surat, Vadodara and Rajkot."

Talking about its targets Bobba said, "We already have 300 to 400 merchant outlets where the imint card can be swiped and points can be redeemed. We plan to cover minimum of 6,000 to 7,000 outlets by 2008-end."

The imint programme has been designed as a national loyalty programme. The card can be availed for a one-time membership fee of Rs 199 and on each transaction or expenditure, members can earn points which can be redeemed at a point slab of a minimum 275 points. The member get rewards like MP3 players, gift vouchers, jewellery and household appliances.

Bharati Airtel offers two points on every Rs 100 on the member's monthly billing or recharge. While, HPCL offers one imint point on every Rs 100 worth of fuel bought at the selected HPCL station. ICICI Bank offers one point on every Rs 200 spent with ICICI Bank debit card.

The company is also considering bringing credit cards, loans and liabilities services under this programme. Indian Airlines gives six points to the member on every Rs 100 spent on purchase of air tickets.

While, Lifestyle International offers two points on every Rs 100 spent in any Lifestyle store. Makemytrip.com gives 5 to 18 points on domestic and international packages and air tickets booked through makemytrip.com.