Client Background: Delhi Duty-Free Services Pvt. Ltd. operates one of the largest duty-free retail spaces in India, located at Indira Gandhi International Airport, New Delhi. The store offers a wide range of products, including luxury goods, perfumes, and alcohol, attracting both domestic and international travelers.
Industry Challenges: The duty-free retail industry is highly competitive, with customers often making purchase decisions based on price comparisons, product availability, and promotional offers. Encouraging repeat purchases is particularly challenging, as duty-free customers are typically infrequent visitors who may not return to the same location soon. Building loyalty in such a transient customer base requires innovative strategies that go beyond traditional discounts.
Objective: Delhi Duty-Free aimed to create a loyalty program that would incentivize repeat purchases among its customers. The goal was to increase the frequency of purchases and ensure that customers chose Delhi Duty-Free over other options available at the airport or elsewhere.
Our Solution: RewardPort developed a multi-tier loyalty program specifically for Delhi Duty-Free customers. The program offered points on every purchase, which could be accrued and redeemed for a variety of luxury products and travel-related services. An online interface was provided for customers to track their points and choose their rewards, ensuring a seamless and engaging experience.
Insight: The choice to offer luxury products and travel-related services as rewards was based on the preferences of the target audience—frequent travelers who value premium experiences. By aligning the rewards with the interests of these customers, the program encouraged repeat purchases and increased engagement. The multi-tier structure incentivized customers to accumulate more points, fostering long-term loyalty.
Results: The loyalty program resulted in a significant increase in repeat purchases and overall sales at Delhi Duty-Free. Customers appreciated the added value of the loyalty points and the ease with which they could redeem them for desirable products. The program not only boosted customer retention but also reinforced Delhi Duty-Free’s position as a preferred shopping destination for travelers.
Conclusion: Delhi Duty-Free’s loyalty program, designed by RewardPort, effectively addressed the challenges of a transient customer base by offering rewards that aligned with their preferences. The program’s success demonstrates the importance of tailoring loyalty initiatives to the unique needs of the target audience, driving repeat business and enhancing brand loyalty.