Indian ecommerce company Flipkart is ready to make another bet on its customer loyalty programme, but in a unique way. Rather than charging an upfront fee for the membership, the Flipkart customer loyalty programme will be activated once a customer hits a certain threshold of purchases.
According to reports, the company has set aside $173 Mn (INR 1,178 Cr) for expenditure on services under the programme for the next three years. The scheme is expected to be launched by the end of July.
Being tagged ‘Lock-In’, the programme is expected to offer Flipkart’s “loyal customers” faster and free deliveries, early access to deals, and other privileges across its group companies, including Phone-Pe and Myntra.
Earlier, in 2014, Flipkart had launched and then rolled back its loyalty programme due to lukewarm response, while its arch-rival Amazon continued to increase the customer base of its subscription-based Prime service, which offers fast and one-day delivery, among other benefits.
The report cited an anonymous Flipkart employee as stating: “The idea is to start treating the cohort of loyal customers as more special. This is why it will be based on frequency and repeat purchases rather than a fixed fee paid upfront.”
The Flipkart Lock-In programme has been brewing for a year, as a loyalty team was constituted around July 2017.