Maruti Suzuki Customer Relationship

Programme

Importance of CRM

• Your customers are the most valuable assets in business

• They are responsible for ‘making’ or ‘destroying’ the company’s wealth

• Today, the service standards are almost the same with everyone and there is no unique differentiation

• We must create a unique ‘differentiation’ to give more value adds and ‘something extra’ to the customer

• The need is to strengthen our relationship and maintain the valuable asset: ‘OUR CUSTOMER’ &

• The tool to do this is ‘CRM’ which will enable us to create and keep satisfied and loyal customers with us

Why do we need to retain the customers?

The customer today…

Getting more difficult to retain

Getting Younger, Smarter and more Informed

Has more money to spend

Has many options to choose from

Changes car every 3 - 5 years

Future business growth to come from…

• Our ability to retain customers

•Ability to accelerate replacement cycle Through upgrade to high-end products Sale of used cars

• Ability to maximize revenue opportunities beyond the new car sale

Service / Repairs Spare Parts Insurance Extended Warranty Accessories Finance

Defining loyalty

Loyalty• Loyalty is the direct function of a happy and

satisfied customer• It is the ability of the company to deliver as per

the customer’s satisfaction• It is not instant and gets developed over a period

of time.

Defining loyal customers

Loyal customer• A customer who gives more value to the organization

and is more profitable• The loyal customer is one who will buy your product or

service even when it is more expensive or at a personal inconvenience

• A customer who is committed to the brand for lifetime and avail of other service offerings

• The loyal customer is one who will stand up and defend your company against unfair comments

• A customer who spreads positive word of mouth about the brand amongst the pier group

Don’t confuse ‘reward’ with ‘discount’

• Discount is very tactical in nature and is a short term selling technique

• Discount does not earn loyalty • Discount is limited only to cash

• Reward on the other hand acknowledges the association and is long term

• Reward can be in ‘cash’ ‘gift’ or ‘kind’• Reward can be consistent and can help in

building loyalty

Complete IntegrationLeading to

More customer value

Referral

Returns for paid

service

Participates in MUL/

Dealer events

Buys insurance/

EW

Free service visits

Sells his car at True

Value

Buys car (New/

Exchange

The BIG Opportunity We Have

The Proposition…

Critical success factor

100% participation of each stakeholder

Function of perceived value

Programme value

For members• Rewards with no ‘extra obligation’• Acknowledgement from the dealer and MUL –

extra care• Relationship that would goes beyond business –

more credibility• Extended benefits through coalition partners

Programme value

For dealers:• Better customer retention leading to more value

per customer• Increase in service reporting leading to better

utilization of the infrastructure (manpower and material)

• Increased revenue share of ‘Maruti extended products’ like MGA, MGP, Maruti Insurance…..

• Another sales support function – Referrals and re-purchase

• Opportunity to run tactical promotion activities with the members for product/ service push

Programme value

For MUL:

• Unique and unparalleled brand property• Increased dealer commitment towards MUL• Focused approach to customer retention and

acquisition (referrals – another stream of sales)• Integration of all customer offerings – product

and service• Last but not the least, an access to customer

data

The Programme

• A relationship programme, exclusively for Maruti Suzuki customers - both existing as well as new

• Programme promise:– Rewards to members on all their spends– Special benefits and exclusive privileges

• Citibank and Indian Oil Corporation as programme partners– IOC has the largest retail outlets in the

country– Citibank has the largest network of merchant

establishments across India

Maruti Suzuki AutoCard Rewards Programme

Rewards

Programme members earn high value Auto Pointsearn high value Auto Points (reward points) on all their spends:

Value of 1 Auto Point earned: Re. 1.00/-

At Maruti Suzuki dealerships / service stations

By purchasing fuels / lubricants from Indian Oil outlets

For shopping / entertainment through the AutoCard

Conversion of Auto Points to Rewards…

At Maruti Suzuki network:

• Purchase of new carPurchase of new car• Services / Repairs • Accessories• Insurance and Extended Warranty

• At IOC outlets:– Refueling or buying lubricants– * Only during the first year of membership– ** Only the points earned at IOC outlets

• Point validity: 5 years (60 months) from the date of earning

Value Added Privileges

• Exchange Loyalty BonusExchange Loyalty Bonus on upgrade/ exchange of Maruti Suzuki vehicle

• FreeFree Accident Insurance Cover: Rs 5.00 lac**

• FreeFree ‘Maruti Suzuki On Road Service & Highway Assistance’ Service

– Only the TOW charges and labour charges are not charged

** Only for Credit Version members

Programme in a snapshot

• Maruti Suzuki customers become programme members by filling an application form at the dealerships

• Receive Welcome KitWelcome Kit along with Maruti Suzuki AutoCardMaruti Suzuki AutoCard

• Start earning reward points on all their spends

• Enjoy value added privileges

• Exchange reward points against purchase of a new Maruti Suzuki vehicle or for maintaining their current car

Maruti Suzuki AutoCard

• Chip embedded Smart Card• An instrument for

– Earning and storing Auto points

– Member details

– Car details: upto 5 cars can be registered on one card

• To be used for all transactions - spends/ purchases

• Carries a credit limit of upto Rs 10,000/- – Courtesy Citibank– Free for Lifetime

Earning of Auto Points

Points Earned on Maruti Suzuki Auto Card- Credit Version

Paid Service Loyalty Bonus 500 points on each paid service MUL

Referral resulting in sale1000 points By the dealer

Events / Promotions organized by the dealer

Bonus Points decided as per the activity

By the dealer

Exchange Loyalty Bonus ≤5000 By MUL

Fuel, Lubricants from IOC Outlets Every Rs 100/- spent = 1.5 points 1 point by Citibank + 0.5 points by IOC

Purchase at Citibank member establishment

Every Rs 100 spent = 1 point By Citibank

Maruti Insurance, MGA, EW Every Rs 100/- spent = 3 points 2 points by dealer/ GP MASS + 1 point by Citibank

Service/ repair / MGP Every Rs 100/- spent = 6 points 5 points by dealer/ GP MASS +

1 point by Citibank

Activity Points Earned Point Description (Liability Ownership)

15025(@1Pt. per Rs

100/-)

125(@5 Pt / Rs

100/-)

Rs. 2500/-

Total Points on

Credit AutoCard

Citibank Points (Credit

AutoCard)

Maruti Pts. onCredit / Prepaid

AutoCard

Spend on Service

Examples of member transaction

Spends at MUL Network: Maintenance Service

Spends at IOC Network: Refueling the Maruti Suzuki vehicle

3020(@1Pt. per Rs

100/-)

10(@0.5 pt /Rs100/-)

Rs. 2000/-

Total Points on

Credit AutoCard

Citibank Points (Credit

AutoCard)

IOC Points

Petrol Purchase

worth

Cash Transaction

• Member has the option of paying through cash and still earn the Auto Points

• In such a scenario, earns only the Maruti Suzuki’s share and IOC’s share of points

• Looses out on the Citibank points

Example: Cash transaction at Maruti Suzuki Network

1250125Rs. 2500/-

Total Points on

Credit AutoCard

Citibank Points (Credit

AutoCard)

Maruti Pts. onCredit / Prepaid

AutoCard

Spend on Service

Talking points – Maruti Suzuki AutoCard Programme

• Exclusive rewards programme launched for its customers

• Wherein you get rewarded on all your spends• Exchange Auto points while purchasing your new Maruti

Suzuki car– Or for routine car maintenance: Earn 500 points on paid

service every single time • Plus host of other privileges including referral bonus, free

accidental insurance…..

Key operations

Operational Details - Focus Areas

• Member Enrolment & Dispatch of Welcome Kit

• Card usage by member and earning of Auto points

• Exchange / redemption of Auto points by members

• Exchange Bonus/ Referral Process

• Functioning of MUL-CPA

Module 1: Member Enrolment

Steps involved: Member enrolment

Step 1: Information to customer about the programme – At dealership: By the sales advisors as part of

sales process

– At service stations: By the service advisors while registering the car for service/ repair and/ or while giving delivery

Steps involved: Member enrolment

Step 2: Filling of an application form

• Mandatory fields: – All the fields Marked in

Red• Documents:

– New customers: Copy of invoice; PAN no./ Form 60, driving license, Copy of insurance

– Existing customers: Service invoice; Copy of RC; PAN no./ Form 60, driving license

• Temporary card:– For earning points till the member

does not receive the Maruti Suzuki AutoCard

Module 1: Member Enrolment

Front side

Temporary Card

Back side

Steps involved: Member enrolment

Step 3Step 3: Dispatch of application to Citibank• All applications to be compiled and sent by AutoCard

Executive to Result McCann

Step 4Step 4: Application screening at Application processing center- Result McCann– Application screening basis mandatory fields &

documentation attached– Application segregation- Accepted and Rejected – Dispatch

• Accepted applications to Citibank• Rejected applications to dealer

Steps involved: Member enrolment

Step 5Step 5: Dispatch of Welcome kit to members by Citibank– Maruti Suzuki AutoCard

– Programme booklet

Card Usage & Earning of Auto Points

Key points

• Transfer of points from ‘Temporary Card’ to Maruti Suzuki AutoCard– Member to bring the card for endorsement to

AutoCard Executive

– AutoCard Executive to transfer the points using the Citibank EDC machine

• Earning of points:– Member presents the card at the billing counter

for making the payment for the transaction

– Card swiped and points are automatically credited

Exchange / Redemption of Auto Points

• Key points– Exchange / Redemption at Maruti Suzuki

Dealerships / GP MASS

– Exchange / Redemption at Indian Oil outlets

– EDC activation & working

– Statement of Auto Points

– Q&A

Exchange / Redemption of Auto Points

Details

• Exchange / Redemption at Maruti Suzuki Dealerships / GP MASS– Member to present the card at the time of paying for

the transaction– Member to request the billing executive for redemption– Billing executive to debit the points from the AutoCard

and complete the transaction• Exchange / Redemption at Indian Oil outlets

– Same as above– Only points earned at IOC outlets to be redeemed– Redemption through petro vouchers with Rs50 value

Exchange Bonus

<1 1 to 2 2 to 3 3 to 4 4 to 5

5000 4000 3000 2000 1000

Vehicle Age- in years

Auto Points

Earn 500 points for every paid service done at the Maruti Suzuki dealer workshop/MASS*.

•The customer has to present his AutoCard while paying the bills of his paid service•The billing executive shall load the 500 points on every time he gets a paid service done at authorized Maruti Suzuki dealer/select M.A.S.S

•The customer can redeem up to 5000 points as exchange loyalty bonus.

The total loyalty bonus shall calculated as Loyalty points basis age of vehicle + Paid service points

=5000

Exchange Bonus will be earned according to the age of the vehicle

Example: Redemption / Exchange of Auto Points

Point basis the age of the vehicle: 3 years

Points basis the paid service(4 paid service X 500)

335123 150000 5000 3000 2000 160000 175123

Net Price of New

Wagon R LX***

Dealer Exchange

Loyalty Bonus

Exchange Loyalty Bonus

Ex Show room price of Wagon

R LX

Approx price of Old Maruti Suzuki 800

Net Price of Old Maruti

800**

•Mr. Sharma is a proud owner of Maruti Suzuki vehicle and is an Auto card member

•His vehicle age is 3 years and his Auto card membership is two year old.

•In his two years of membership he got his vehicle serviced twice and utilized same number of Paid service loyalty Coupons

•Mr. Sharma now decides to exchange his car at true value

•Because he is an Auto card member he gets entitled for additional Exchange loyalty Bonus.

Section 3: Statement of Auto Points

Module 3: Exchange / Redemption of Auto Points

Carries details of Auto Points earnedat MUL network, IOC outlets, Citibank

outlets

Statement for Credit AutoCard is sent every month

Frequency for Prepaid AutoCard depends on usage

Referral Process•The member can earn 1000 Auto Points

•He has to recommend a friend / family member to buy a Maruti Suzuki vehicle

•The referred person comes at the dealership to buy a new car

•He presents the “Smile Voucher”, to ACE at the dealer premises

•Stamped counterfoil of the coupon is handed over to the referred customer

•Referred customer gives the stamped counterfoil to the card member

•The card member comes back to the same dealership with the counterfoil and gets 1000 points transferred to his Auto Card

Application process Flow

ACE meets Customer

Customer fillsthe form & gives

the Mandatory Documents

Double check theInformation (Fields in RED are mandatory)

Collect the self attested DocumentsFrom the customer for :-

New Cars: Copy of Sales InvoiceCopy of Insurance Note coverPAN NO or Form No 60(Attached with application)

Existing Cars:Copy of Service CardCopy of insurance noteCopy of RCPAN NO or Form No 60(Attached with application

ACE stamps the attached Mandatory documents withthe dealer stamp

Collates all the forms from various premises:•Work shop•Showroom•True Value Outlets

Log Sheet Preparation:Recheck & “TICK” complete information•Attached Documents•Signature•Mandatory fields•SE Code

Attach s the log sheet with the collated form

to prepare the dispatchedpacket

Maintain the copy of the log sheet

ACE sends the packet to CPA

Staff Roles & Responsibilities

• Customer contact and AutoCard promotion

• Application Form filling and mandatory document collection

• Application Form checking

• Log sheet preparation

• Dispatch of application forms to Result McCann and maintenance of log book

• Processing of the referral vouchers

• Up-dation and maintenance of member records & Handling in-person member queries

• MIS to MUL about programme performance/ enrolment activity

• Functional support to other staff

• Training of the new support staff

• Supervision of the PoP and PoS stock

Responsibilities - AutoCard Executive

Thank You