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India's 1st 'Comprehensive Loyalty Management' Company
Launched
New Delhi, September 27, 2000 |
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| HT Vision, Puneet
Dalmia of JobsAhead & Saroj Poddar Provide Angel
Funding |
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| NetCarrots.com, India's first 'Comprehensive
Customer
Loyalty Program' announced the launch of its
services during India Internet World. The program
involves rewarding customers regularly for buying
or using products or services from a basket of established
brands. Many Indian and international industry giants
across various product categories have partnered
with the program. The loyalty partners in the
launch phase include Maruti, Go4i.com, 123India.com,
Dominos, LG, Electrolux, Kelvinator, egurucool.com,
TNG Apparels, FabMart.com, Max Clean, PWaiter on
Wheels and Allwyn. A host of other offline and
online companies are in advanced stages of talks
for partnering with the programme. |
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| Prominent Angel Funders like Puneet
Dalmia, Cofounder, Jobsahead.com, Saroj K. Poddar,
Chairman, Gillette India and Hindustan Times Vision
have invested in NetCarrots.com. |
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| The company's business model involves
providing incentives to customers for the activities
they are doing already. For instance, a customer
can earn just by surfing through 123India.com and
redeem his earnings at Dominos for a pizza. Thus,
the customer is offered multi point earning and
redeeming opportunities both offline and online.
These earnings called carrots can be redeemed at
NetCarrots.com affiliates on products that the customer
chooses. Through the NetCarrots programme, the customer
can end up earning carrots worth Rs. 1000-2,000
per month. |
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| The programme creates a community
of organizations, which co-operatively offer their
products and services to the customers. The partner
organizations benefit in the form of enhanced customer
loyalty, stickiness at low costs and a steady customer
flow. |
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| NetCarrots will earn revenue on
every transaction or activity performed with its
loyalty partners. Its other revenues come
from the innovative sales and marketing solutions
that it has devised. The company plans to reach
cash breakeven within 1.5 years and net break even
by 2.5 years from launch. |
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| Highlighting the advantages to the
companies, Aditya Poddar, Cofounder, NetCarrots.com
explained, "Competition is eroding the bottomlines
and the rules of the game are changing at a rapid
pace. Loyal customers can chart out the success
and failure of any organization. That was the key
driving force behind this initiative." |
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| Explaining the rationale behind
starting the programme, Manu Dogra, Co-founder Netcarrots.com
said, "Research has shown that increasing customer
retention rates by 5% increases profits by 25%-95%.
Since time immemorial sellers have tried to capitalize
on this by providing extra attention to their loyal
customers. Thus we thought of using technology to
help companies share this loyalty amongst
themselves. The customer in return gets additional
value while performing daily activities like purchasing,
due to the incentives he gains for his stickiness." |
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| "In a competitive business environment
loyal customers are support bases for success. When
NetCarrots.com team presented us with this idea
we could sense that their vision was clear and then
and there we took an immediate decision on funding
them. I was really effected by their basket of services
both offline and online. I could see a wonderful
new concept emerging," commented Puneet Dalmia,
one of the Angel Funders. |
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| Mr. Hari Menon, Executive Director,
Fabmart.com said, "Our association with NetCarrots.com
makes good business sense because for the first
time in India this type of a program is being offered.
Further it matches the long-term goal of offering
maximum amount of value added services to our users."
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