We accept

Loyalty Programs WITHIN THE Success Of Hero Honda Business Essay

"Customer loyalty is when a business receives the ultimate reward for just how it interacts with its customers. Devoted customers buy more, buy longer and notify more people - that is true customer loyalty".

Although customer commitment is often achieved through offers, discount coupons, rebates and other types of rewards, long-term customer loyalty can only be created by making your customers feel that they can be your number 1 priority. Competitive advantages can be achieved through customer commitment. This is actually the way to get the best kind of customers, repeat customers. Duplicate customers tend to spend additional money and provide the best word-of-mouth advertising. Commitment programs are organized marketing work that reward, and therefore encourage, loyal buying action - patterns which is potentially of great benefit to the organization.

Customer devotion, not client satisfaction, is key to the success of an organization, and customer devotion is fostered when a business excels along two dimensions:

Design of its Products - including its Service Products

Operational Execution - or Conformance - to the Design

Many companies concentrate on rewarding customers who have repeat buys. Such compensation programs have their put in place assuring customer commitment. However, if the merchandise or service doesn't meet customer needs, no incentive program could keep them returning. For success over time, an organization must:

Continuously improve

Quickly identify and deal with problems to the customer's satisfaction -- or more

The first step in customer loyalty research programs is formulating the aims. Next, the current talk about of customer loyalty must be documented. That's, what is the satisfaction level and the defection rate? Then, data collection tasks, such as survey questionnaires and other research tools, must be developed. The target in these tools is to find out customers' satisfaction level and how many customers are defecting.

Customer Loyalty has turned into a catch-all term for the outcome of many marketing solutions where customer data is used. We are able to say Marriage Marketing or Databases Marketing or Permission Marketing or CRM, and it is endeavoring to increase customer devotion - getting customers to choose to buy or visit more. Every one of the above techniques have two elements in common - they increase both customer retention and the Life span Value of customers. Customer devotion is the result of well-managed customer retention programs; customers who are targeted by a retention program demonstrate higher commitment to a business.

About Hero Honda

Hero Honda's quest is to shoot for synergy between technology, systems and human resources, to produce products and services that meet the quality, performance and price aspirations of its customers. At exactly the same time maintain the highest criteria of ethics and cultural responsibilities.

Hero Honda is really the only two-wheeler company in the country with a 100 per cent motorcycle visibility. Although its sales have grown at a good clip within the last year, a larger motorcycle pie and higher competition has resulted in a semester in the company's market talk about-51 per cent in August 2001 to 47 per cent this August.

To counter your competition, the business is seeking to create an intermediate category with its latest model, the 133-cc Ambition. This bicycle is directed at users who want to proceed to a high-end model but wouldn't prefer to shell out top quality model prices. Hero Honda is taking it easy on launches. Besides Ambition, it is looking at a 200-cc motorcycle next fiscal and a relaunch of CBZ, which includes been steadily getting rid of out to Bajaj's comparable offering Pulsar. Says Sobti: "We will move into launch mode only when we believe there's a demand for new products, much less an attention-getting technique that will uselessly group the marketplace. "

Instead, the company is focussing on maximising sales of its existing product container. To the end, the business has upped advertisement spend over the past year. It offers a two-year warranty on all its motorcycles (the only two-wheeler manufacturer to do so). Another key initiative is a person loyalty program, "Hero Honda Passport Programme". Readers have entitlement to discounts on spares and service.

Customer loyalty Programme in Hero Honda i. e

"Hero Honda Passport Programme"

Hero Honda Passport Programme

The Hero Honda Passport Programme is open and then Hero Honda motorcycle owners/customers who are resident Indian nationals. It isn't available to non-resident Indians, employees of Hero Honda Motors Small, and its own advertising companies (End result: McCann and its own respective subsidiary companies).

The Hero Honda Passport will be given in the name of an individual only, and not in the name of an organization, corporate body or connection of people.

The Hero Honda Passport will be granted only to people who are 18 years of age, or more mature.

There is a non-refundable enrollment cost for the program.

Two passport-sized photographs must be mounted on the application form.

The Hero Honda passport is non-transferable.

In case, a job candidate is the next or subsequent end user of the Hero Honda motorbike, he/ she actually is required to submit a duplicate of the subscription booklet, duly moved, along with the Hero Honda Passport Application form.

If any Hero Honda Passport holder manages to lose his/her Hero Honda Passport, a fresh copy of the same will be granted to the member, on repayment of the requisite fee.

The Hero Honda Passport is valid only for three years from the time of concern.

It will take minimum of 4 weeks, from the time frame of enrolling for the Hero Honda Passport Program, to provide the Hero Honda Passport.

On becoming a Hero Honda Passport Programme member, the applicant authorises all the organisations, with which Hero Honda Motors Limited may finalise arrangements (including Hero Honda Motors Limited), to utilize data published by him/her for marketing and communication purposes, to improve performance of the Hero Honda Passport Program.

In circumstance of non-receipt of the Hero Honda Passport, it is required for the applicant to intimate the Hero Honda dealership within 45 days and nights from the time of request.

In case of reduction/theft of the Hero Honda Passport, the member must inform the Hero Honda dealership immediately.

Hero Honda Motors Limited reserves the to reject any software at its sole discretion, without assigning any reason.

Hero Honda Motors Small is not accountable for any damaged/mutilated/lost -in transit/incorrectly filled forms.

All Hero Honda Passports, even after their issuance, continue to be the house of Hero Honda Motors Small.

Hero Honda Motors Small will not accept responsibility for circumstances that are beyond its control, and this could cause a delay or inability to fulfill demands of the Hero Honda Passport holders.

Hero Honda Motors Limited retains out no warranty, and makes no representation about the quality of the goods and services provided by companions in the Hero Honda Passport Programme, and can not be liable if the goods/services are defective/ lacking/unsatisfactory, in any way.

Hero Honda Motors Limited is not in charge of any liability incurred by the Hero Honda Passport holder, regarding any aspect of the Hero Honda Passport Programme.

In circumstance of any disputes of distinctions in connection with the Hero Honda Passport Program, the same will be determined by arbitration. The arbitrator will be the Managing Director, Hero Honda Motors Small, or anybody nominated by him. The arbitration will be conducted according to the prevailing arbitration laws guidelines in New Delhi.

Hero Honda Motors Small shall not, in any way, be liable, or be under any obligation to the participant, if the Hero Honda Passport Program is withdrawn or changed anticipated to statutory enactment's, and judicial/ quasi judicial purchases.

Hero Honda Motors Limited reserves the right to add, change, withdraw or erase the rules, terms, conditions or the period of the Hero Honda Passport Program, with or without prior notice.

How to use your Hero Honda Passport?

Each time you visit an authorised Hero Honda dealership or service centre, make sure that you bring your Hero Honda passport along.

Customer can accumulate details against purchase of spares, accessories and service at Hero Honda authorised dealerships / service centers.

The Hero Honda passport will provide as an archive publication for keeping an account of the factors build up by you.

Each rupee you spend, at the dealership / service centre, entitles you to one point.

Customer can also earn bonus point when you come for a free service you visit the dealership ( at least thrice each year ), and buy things worthy of Rs. 50 per visit. You refer your family members and friends to acquire a hero Honda bike.

At the time of setting up your bills, make sure that your Hero Honda passport is endorsed with the attained points.

The more you earn your tips, the more benefits you obtain.

What are the benefits of running a hero Honda passport ?

The accumulated tips can be used to enjoy a coordinator of special privileges and benefits from time to time.

The point in time customer get its hero Honda passport, he's automatically covered for just one year Mishap Insurance RS 1 lakh.

Customer become entitled for special rewards and special discounts, as soon as you build up the specified tips, at the authorised hero Honda dealerships / service centers.

Customer can also get invites to exclusive local occasions, such as movie shows, musical evenings and carnivals.

Periodic updates will be delivered to you, from the hero Honda programmed centre, with your point position. Special information and tips relating to your bike, hero Honda Passport Program happenings and exclusive offers from other brands may also be delivered to you along with the updates

Hero Honda CRM programme

Hero Honda has protected two million customers under passport programme. The passport programme builds enduring relationship with customer. It had been rolled out nationally in 2001. According to the design, every rupee put in by the member translates into a reward point. These praise points may then be redeemed for gifts, the release provides.

Hero Honda GoodLife Program

We request you to your 'Rishta Dil Ka' bond to provide us an possibility to share what we have in store for you. All you need to be always a resident Indian national, aged 18 years or above and you should be an owner of Hero Honda mobility scooter or motorcycle to be a part of One of the greatest customer romance program in India. The Hero Honda GoodLife Program offers you great rewards, benefits and a range of exciting gift items, chosen specifically for you. Becoming member of this exclusive program is simple and easy. All you need to be always a resident Indian countrywide, aged 18 years or above and you should be an owner of Hero Honda scooter or bike. Simply follow the steps defined below and you will start experiencing the privileges to be an associate of India's most significant rewards program.

Fill the fresh online program at the dealership. If you are a Hero Honda Passport member, kindly submit the Passport at the dealership.

For three years membership and one year protection plans pay a nominal regular membership charge of Rs. 150, or for 3 years membership and three years protection plans pay Rs. 250.

To know more call 1800112255 or write to us at

On successful enrolment, you will get a Hero Honda GoodLife regular membership card which can only help you earn things on all of your spends at Hero Honda dealerships and service centres. You may accumulate factors and redeem them for a variety thrilling milestone rewards.

Rewards And Benefits

The Hero Honda GoodLife Program is your own passport to the good things of life. It brings you a fairly easy to work with privilege credit card that offers a host of special rewards and benefits. Offering you fabulous earnings on your spends, it is surely the most convenient way to complement your good life.

Your world of rewards:











Be A Hero Honda Good Rider

Loyalty is demonstrated by the activities of the customer; customers can be quite satisfied and still not be devoted. So, as a CRM strategy and then for client satisfaction they marketed themselves as Socially in charge company. Therefore as a socially liable company they urgecustomers to become listed on them in making this world a safer, better and more environmentally friendly place. At Hero Honda they prefer to promote the three E's.

Engineering - which is the right technology, specifically designed for Indian customer requirements, and road conditions. It really is exemplified in the 4-stroke Hero Honda engines that provide you amazing trustworthiness and fuel-efficiency, every year. We have always companies 4-stroke engines, ever since inception in 1985.

Environment - which is about ensuring that the high technology 4-stroke Hero Honda motorcycles continue to meet up with the most strict pollution control norms at every level - as they have since the very beginning.

Education - which is approximately promoting comfortable and safe travelling, through a wide supplier network and service centres; as well as in educating people on highway safety, in colaboration with the traffic authorities and the carry department. Remember that you and your family aren't only riders, but pedestrian as well.

It is as area of the Hero Honda family that 'We Care' to operate a vehicle home the concept of Road Safe practices and a Healthy Environment.

Your Hero Honda, the environment therefore you.

It is a three-way relationship that you should nurture, to experience the benefits for a long time to come. A well tuned bike keeps the environment healthy. Good using practices will keep you healthy. Taking good care of your bike will always keep your bicycle healthy.

Here are simple steps to a wholesome bike, healthy environment, and a wholesome you.

Health and Environment


Facts and Information

Social Responsibility

We are sure that you too will take pride in being a true Hero Honda Good Rider.

Success of devotion program to the Hero Honda

For the success of devotion programme the organisation have to answer these guidelines. . . .

Identify the main element processes in creating a loyalty program

Create and map the commitment business case by interesting all inner stakeholders and getting executive-level sponsorship

Gain maximum internal support that drives truly commercial performance

Turn customer insights into actionable marketing strategies

Apply advanced customer segmentation and propensity modeling techniques

Implement various financial planning tools for your loyalty program

Maximize the marketing ROI of romantic relationship chain and branding with your loyalty program

Confidently enjoy the rewards of the devotion program and, display and justify the success of your loyalty program


Customer Satisfaction and commitment plays a major role in developing and promoting the business. Customer loyalty is an essential aspect, which influences the Budget and Goodwill of the company. Customer needs are strong, but its factor is necessary for each and every company to make presence into the market. Loyalty programs are more and more gathering popularity in the Asia Pacific region. And company uses the various loyalty programmes like "Hero Honda Passport Program" in Hero Honda. It is the CRM initiative considered by the business to:

Brand knowing of Hero Honda electric motor cycles.

Know about the time in which customers usually buys bikes.

Know about the effect of promotional plans on customers.

Purchase style of customers

To find out about the media by which customers come to know about the bikes

For data source.

Encourage, faithful buying behavior - action which is potentially of benefit to the company.

So all of these loyalty programmes are very helpful in success of HERO HONDA.

More than 7 000 students trust us to do their work
90% of customers place more than 5 orders with us
Special price $5 /page
Check the price
for your assignment