Project Draft

Competitor Analysis of Lulu’s Loyalty Program

(Lulu Happiness) among other Indian, UAE, and
USA Competitors

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Abstract

This project aims to conduct a comprehensive competitor analysis of Lulu's Loyalty Program (Lulu
Happiness) by examining its key competitors in India, the UAE, the UK and the USA. The analysis will
focus on evaluating the loyalty programs, mobile applications, social media activities and marketing
and promotional strategies of these competitors with a focus on uncovering areas where Lulu Group
might enhance its offerings.

The objectives of this project include analysing the loyalty programs of Lulu Group's competitors to
identify best practices, evaluating the mobile applications in terms of functionality, user experience,
and features, assessing the social media strategies and activities, and various marketing and promotional
strategies providing recommendations for improving Lulu Happiness’ mobile app features, social media
presence and marketing activities. Through a comparative framework, this research will explore
functionality, user experience, and the effectiveness of rewards systems across regional boundaries.

The methodology includes SWOT analysis, comparative analysis, sentiment analysis and data
collection from primary and secondary sources, such as app reviews and social media audits etc. The
findings will offer insights into best practices and help develop recommendations for improving Lulu's
loyalty app, optimizing customer engagement, and enhancing market competitiveness. By analyzing
the strengths and weaknesses of competing programs, this project provides actionable strategies to
strengthen Lulu's loyalty initiatives and align better with diverse customer expectations across different
markets

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 CHAPTER 1
INTRODUCTION

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INTRODUCTION

"Satisfaction is a rating. Loyalty is a brand"

- Shep Hyken

Loyalty programs are a critical component of customer relationship management in the retail sector,
offering businesses a way to reward frequent customers and encourage repeat purchases. In today’s
highly competitive landscape, digital loyalty programs, particularly those delivered through mobile
applications, have become pivotal in shaping customer experiences and building brand loyalty. This
digital shift allows companies to offer personalized rewards, track consumer behavior in real-time, and
adapt to the changing demands of a global customer base.

For my project, I had the privilege of interning with Lulu Group India’s Loyalty Department for two
months, where I closely worked with the team responsible for managing the Lulu Happiness loyalty
program. During this period, I was deeply involved in understanding the program's operational aspects,
including customer engagement strategies, rewards management, and app development processes. This
hands-on experience provided me with insights into the complexities of designing and executing a
successful loyalty program in a dynamic retail environment.

The focus of my project work is to conduct a competitor analysis of the Lulu Happiness program by
comparing it with other major loyalty programs in India, UAE, UK and USA. By evaluating the loyalty
apps of competitors, such as Pantaloons Greencard, Al-Futtaim Blue Rewards, Landmark Shukran,
Target Circle, Tesco Clubcard, and Costco Membership, I aim to identify gaps and opportunities for
improvement in Lulu’s offering. The goal of this analysis is to present actionable insights that can
enhance the Lulu Happiness program, particularly in terms of user engagement, rewards structure, and
mobile app functionality, ultimately helping Lulu Group stay competitive in different markets.

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What is a Loyalty Program?

A loyalty program is a structured marketing strategy designed by businesses to encourage customers to

continue purchasing their products or services. It incentivizes repeat transactions by offering rewards,
discounts, or other perks in exchange for consistent patronage. These programs are built on the principle
that retaining existing customers is more cost-effective than acquiring new ones, and loyalty programs
create a mutually beneficial relationship between businesses and consumers. Companies leverage
customer loyalty programs to increase brand engagement, collect valuable customer data, and foster
long-term relationships, thereby boosting customer retention and lifetime value. Popular across various
industries like retail, hospitality, and e-commerce, loyalty programs aim to build trust and emotional
connections with customers by providing tangible benefits in exchange for their continued business.

Types of Loyalty Programs

 Point-Based Programs
One of the most common loyalty program types, point-based programs allow customers to
accumulate points for every purchase or interaction. These points can later be redeemed for
rewards such as discounts, free products, or other incentives. Customers are motivated to earn
more points and remain loyal to the brand for better rewards.
Example: Starbucks Rewards allows customers to earn stars for every purchase, which can be
redeemed for free drinks and food.

 Tier-Based Programs
Tier-based loyalty programs categorize customers into different levels, with each tier offering
progressively better rewards. As customers increase their spending or engagement, they advance
to higher tiers, unlocking additional benefits such as exclusive discounts or early access to sales.
The psychological aspect of reaching a new tier motivates customers to increase their
engagement.
Example: Marriott Bonvoy offers members various tiers like Silver, Gold, and Platinum, each
with increasing levels of perks, including room upgrades and bonus points.

 Cashback Programs
In cashback programs, customers receive a percentage of their total purchase amount back as a
cash reward. This can be used for future purchases, and in some cases, the cashback can be
withdrawn or transferred to a bank account. Cashback programs are popular because they offer a
clear and immediate monetary benefit.
Example: Rakuten offers cashback rewards on purchases made through its platform, providing
users with a percentage of their spending in cash.

 Coalition Programs
Coalition programs allow customers to earn points or rewards across multiple partnered brands.
These programs typically involve a group of businesses that collaborate to offer a unified loyalty
program, which gives customers more ways to earn and redeem rewards. Coalition programs are
beneficial for customers who want variety and flexibility.
Example: The Payback program in India partners with brands like Big Bazaar and MakeMyTrip,
enabling customers to accumulate points across different retailers and services.

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 Paid Loyalty Programs
In paid loyalty programs, customers pay a membership fee to access exclusive benefits, such as
faster shipping, discounts, or access to premium services. Customers are typically willing to pay
for these programs if they perceive that the benefits outweigh the cost of membership.
Example: Amazon Prime is a paid loyalty program offering free shipping, access to streaming
services, and exclusive discounts for a yearly fee.

Key Features of Loyalty Programs

 Easy Enrollment
 Reward Earning Mechanism
 Reward Redemption System
 Personalization
 Mobile and Digital Integration
 Customer Engagement Beyond Purchases
 Tiered Systems

Benefits of Loyalty Programs

 Increased Customer Retention

 Better Customer Engagement
 Valuable Data Collection
 Higher Customer Lifetime Value (CLV)
 Competitive Advantage
 Cost Efficiency

How a Loyalty Program Works

A loyalty program works by offering customers rewards in exchange for their loyalty and continued
patronage of a brand or business. The main idea is to build long-term relationships by incentivizing
repeat purchases and ongoing engagement. Loyalty programs are typically structured around the
following core processes:

 Enrollment
 Earning Rewards
 Redeeming Rewards
 Tracking Progress
 Rewarding Engagement Beyond Purchases: many programs reward non-purchase behaviors
such as:
o Writing product reviews
o Sharing brand content on social media
o Referring friends or family
o Attending in-store events or special promotions
o Participating in surveys or feedback campaigns
 Retention and Engagement

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Loyalty Program Incentives

Loyalty programs offer a variety of incentives to keep members engaged. These incentives are designed
to make customers feel valued, encouraging them to stay loyal to the brand. Some common types of
incentives include:

 Early Access to New Products

Example: Apple offers early access to product launches for members of its loyalty program.

 Early Access to Sales

Example: Flipkart’s loyalty program offers early access to its Sale for top-tier members.

 Free Merchandise or Enhanced Services

Example: Sephora’s Beauty Insider program gives members free gifts and access to
personalized beauty consultations.

 Special Services, like Free or Expedited Shipping

Example: Amazon Prime members receive free two-day shipping on millions of items.

 Members-Only Discounts
Example: Target Circle offers members-only discounts on select products.

Challenges in Implementing Loyalty Programs

While loyalty programs offer several benefits, businesses often face challenges when designing and
implementing them effectively:

 High Costs
 Complexity in Management
 Diminishing Returns
 Lack of Engagement
 Data Security and Privacy Concerns
 Customer Expectations

INDUSTRY PROFILE
Retail Loyalty Programs

In the global retail industry, loyalty programs have become a vital tool for retailers to retain customers
and enhance their overall shopping experience. As competition grows, retailers are leveraging loyalty
programs to differentiate themselves in the marketplace. The transition from traditional loyalty cards to
mobile apps has transformed how companies interact with customers, allowing for real-time data
collection, personalized offers, and seamless rewards management.

Retailers utilize loyalty programs to build stronger customer relationships and encourage repeat
business. With the rise of e-commerce and mobile shopping, the effectiveness of loyalty programs is
often defined by the app’s user experience, ease of redemption, and the ability to deliver personalized
rewards. In markets such as India, UAE, UK and the USA, customer preferences vary significantly,

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making it essential for retailers like Lulu to adapt and localize their loyalty offerings.

Company Profile- LULU GROUP INDIA

LuLu Group International, a global conglomerate based in Abu Dhabi, UAE, manages a network of
hypermarkets and retail outlets. Established in 2000 by M. A. Yusuff Ali from Nattika, Kerala, the
group’s flagship chain, "Lulu Hypermarket," is recognized as a leading grocery retailer across many
regions where it operates.

In India, LuLu Group headquarters in Edapally, Kochi as “LuLu Group India”. The group has a diverse
business portfolio spanning retail, hospitality, real estate, and trading. Known primarily for its retail
division, LuLu Group operates an extensive network of hypermarkets across Kerala, Tamil Nadu,
Karnataka, Telangana, and Uttar Pradesh. The company also maintains various offices, a large
distribution center, and numerous warehouses nationwide, supporting its fast-growing retail operations
in India. Its distribution center ranks among the largest in the country, supplying high-quality products
to its retail outlets.

Currently, there are seven LuLu Malls in India, located in Kochi, Bengaluru, Palakkad, Kozhikode,
Thiruvananthapuram, Hyderabad, and Lucknow.

Lulu Happiness

Lulu Happiness is the loyalty program of Lulu Group. The Lulu Happiness loyalty program was initially
launched in 2015 as a mall program with basic functionalities but was relaunched on October 17, 2023,
as a revamped loyalty program. This new iteration aims to enhance customer engagement and
satisfaction by offering a more streamlined and rewarding shopping experience.

As a relatively new program, Lulu Happiness is in the process of building and expanding its features
and benefits to better serve its members.

The program allows members to earn points on every transaction, fostering a sense of loyalty and
encouraging repeat visits. By offering a seamless way to accumulate and redeem points, Lulu Happiness
aims to create a rewarding shopping experience that adds value to each purchase.

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Objectives of the study

 To analyse the loyalty programs and its benefits of Lulu Group's key competitors and identify
best practices.
 To evaluate the mobile applications of these competitors in terms of functionality, user
experiences and features.
 ⁠To assess the social media strategies and activities of the competitors, identifying effective
approaches and areas for improvement.
 To study the various marketing and promotional strategies of the competitors to know how
market their loyalty programs and what promotional tactics they use to attract and retain
customers.
 To understand and audit of social media, benchmark promotional strategies,
communication channels etc..
 To provide recommendations for improving lulu group’s loyalty program, mobile app features,
social media presence and marketing and promotional strategies.

Significance of the Study

In the current digital landscape, loyalty programs have evolved as a key strategy in retail, providing
critical avenues for customer engagement and retention. This study highlights the competitive dynamics
in loyalty programs across diverse markets, offering Lulu Group an in-depth understanding of areas
where its loyalty program can be optimized. Insights derived from this study will help Lulu Group better
meet customer expectations, enhance their program’s appeal across different demographics, and
strengthen their market position.

Scope of the Study

This study is designed to analyze the competitive standing of Lulu Group’s loyalty program, Lulu
Happiness, by benchmarking it against other prominent loyalty programs in India, UAE, USA, and UK.
The focus of this analysis is to evaluate the structure, benefits, and user experience of each loyalty
program, comparing core elements such as mobile app functionality, rewards structure, engagement
strategies, and promotional tactics.

Key competitors analyzed in this study include Pantaloons GreenCard in India, Al-Futtaim Blue
Rewards in the UAE, Target Circle in the USA, and Tesco Clubcard in the UK. Through a regional
comparison, the study aims to assess the unique elements of each program and identify actionable
insights that could enhance Lulu Happiness’ value proposition.

Limitations of the Study

Due to the international scope of competitors, access to complete and updated information on the
functionality, rewards, and app performance of each loyalty program was limited.

The diversity in program structures, local market dynamics, and reward systems across regions
introduced complexity, making some aspects challenging to standardize for a direct comparison.

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Key Competitors in this study

This project involves analyzing loyalty programs across four diverse regions—India, UAE, USA and
the UK—to gain a comprehensive understanding of how retail loyalty strategies differ based on
cultural, economic, and technological factors. Each region presents unique opportunities and challenges
for retailers, with varying customer behaviors, market competition, and digital adoption influencing the
structure and success of loyalty programs.
The competitors for Lulu Group's Lulu Happiness loyalty program in this project are:

1. India- Pantaloons Greencard

India’s retail market is vast and highly competitive, with brands using loyalty programs as a key
differentiator. India’s rapid shift towards digital payments and e-commerce has also accelerated the
growth of app-based loyalty programs. . The focus is primarily on value-driven customers, with
loyalty programs like Pantaloons Greencard that rewards fashion-conscious customers with points
that can be redeemed for future purchases. The program also offers exclusive benefits like early
access to sales, personalized shopping experiences, and seasonal discounts, making it a popular
choice among Indian shoppers.
Focus: Fashion retail, value-driven consumers, mobile app-based rewards.

2. UAE- Al-Futtaim Blue Rewards

In the UAE, loyalty programs are integral to the retail landscape, particularly in the context of a
multicultural and affluent population. The UAE’s advanced technological infrastructure supports
highly personalized and flexible loyalty solutions.
Al-Futtaim Blue Rewards is a multi-brand loyalty program covering a wide range of products and
services, including fashion, electronics, and automotive sectors. Members earn points on every
purchase, which can be redeemed across multiple Al-Futtaim brands. The program emphasizes
flexibility and convenience for its UAE-based members, offering valuable deals and a user-friendly
mobile app for tracking rewards.
Focus: Multi-brand rewards, seamless app integration, affluent and tech-savvy consumers.

3. USA- Target Circle

The USA is home to some of the most sophisticated loyalty programs, which emphasize
personalization and customer engagement. Target Circle is one of a popular loyalty program by
Target Corporation in the USA. The program provides personalized offers, exclusive discounts, and
the ability to earn 1% on purchases to be redeemed later. Target Circle is known for its integration
with the retailer’s mobile app, offering a smooth user experience and personalized
recommendations based on customer preferences.
Focus: Personalized offers, subscription-based rewards, high-value shopping discounts.

4. UK- Tesco Clubcard

The UK has a well-established history of loyalty programs, with market leaders like Tesco
Clubcard, one of the most well-established loyalty programs setting the standard for customer
rewards. It offers customers points for every pound spent, which can be redeemed for discounts or
converted into vouchers for use at partner companies. The Clubcard app is highly regarded for its
simplicity and user engagement, providing personalized offers and extensive rewards partnerships
across the UK.
Focus: Personalized rewards, partner networks, integration of physical and online shopping.

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Lulu Group’s Position

The Lulu Happiness loyalty program aims to cater to a diverse customer base in the India, offering a
wide range of rewards and an easy-to-use mobile app. However, as Lulu continues to expand, it becomes
increasingly vital to implement a robust loyalty program that not only attracts new customers but also
retains and engages them effectively. A well-structured program is essential to sustaining customer
interest, fostering long-term loyalty, and ensuring the continued success of Lulu's expanding operations.
A detailed competitor analysis is essential to help Lulu identify gaps in its loyalty program and
implement best practices from these global players.

By examining competitors such as Pantaloons Greencard, Blue Rewards, Shukran, Target Circle,
Costco Membership and Tesco Clubcard, Lulu Group can enhance its app features, offer more targeted
rewards, and refine its customer engagement strategies to remain competitive in diverse markets.

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 CHAPTER 2
LITERATURE REVIEW

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1. Kaur (2024) in his study “The Impact of Loyalty Programs on Customer Retention in the Retail
Industry” investigates the impact of loyalty programs on customer retention within the retail
industry, focusing on how these programs enhance customer loyalty and influence purchasing
behaviours. Utilizing a mixed-methods approach, the research combines quantitative surveys and
qualitative interviews to provide a comprehensive analysis. The primary objectives are to identify
the types of loyalty programs used in retail, assess their effectiveness in retaining customers, and
explore the psychological mechanisms that underpin customer loyalty. The hypothesis propose that
well-designed loyalty programs significantly improve customer retention by increasing satisfaction
and fostering repeat purchases. The findings reveal that loyalty programs, particularly those
offering personalized rewards and tiered benefits, effectively boost customer retention by creating
a sense of value and emotional connection with the brand. Additionally, the study highlights the
importance of using customer data to tailor loyalty initiatives, which enhances the shopping
experience and strengthens customer relationships. The research contributes to both academic
literature and practical applications, offering valuable insights for retail managers aiming to
optimize their loyalty strategies. By demonstrating the positive impact of loyalty programs on
customer retention, this study underscores the critical role these programs play in achieving long-
term success and competitive advantage in the retail industry.

Keywords: Loyalty Programs, Customer Retention, Retail Industry, Customer Loyalty

2. Son, Oh, Han, and Park in their 2019 study- “When Loyalty Goes Mobile: Effects of Mobile
Loyalty Apps on Purchase, Redemption, and Competition”, examine the transition from traditional
plastic loyalty cards to mobile-based loyalty apps, with a specific focus on multi-vendor loyalty
programs (MVLPs), where multiple brands collaborate on a shared points-based rewards system.
The shift to mobile loyalty apps has significant implications for customer engagement, largely due
to easier information access, lower search costs, and efficient point tracking.

By analyzing a dataset on loyalty app adoption, point redemption, and purchasing behavior, the
authors reveal that adopting a mobile loyalty app is associated with increased purchases and a
greater inclination to redeem loyalty points. Despite these benefits, the study notes potential
downsides; for instance, consumers are more likely to respond to deals across various stores, which
could dilute their loyalty to individual brands. As a result, while consumers might visit a broader
range of stores, their spending at specific stores tends to decrease. These findings provide valuable
insights for structuring and managing mobile loyalty programs and inform strategies to mitigate
loyalty risks within MVLPs.

Keywords: Multi-vendor loyalty programs (MVLP), customer engagement, point tracking,

consumer behavior, purchase patterns, loyalty program design, reward-driven strategies, store-
specific loyalty

3. Zikiene, Kyguolienė, and Kisieliauskas in their study “The Influence Of Creative And Innovative
Loyalty Programs’ Features On Customers’ Attitudinal, Conative, And Behavioural Loyalty”
conducted in 2024, explore how creative and innovative features within loyalty programs affect
different dimensions of customer loyalty—namely, attitudinal, conative, and behavioral loyalty.
They emphasize that while companies heavily invest in loyalty programs to strengthen customer
loyalty, the effectiveness of these programs is under scrutiny. Factors like spurious loyalty,
perceived value, and shifting consumer expectations challenge the impact of traditional loyalty

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 programs. To adapt, companies need to incorporate creativity and innovation into program design
to better meet customer needs.

Through a study involving 203 respondents and an ordered logistic regression analysis, the authors
found that features such as engagement, gamification, personalization, and experience-based
elements significantly influence customer loyalty. Specifically, all four types impact attitudinal and
behavioral loyalty, while engagement, gamification, and experience-based features positively
influence conative loyalty. These findings suggest that tailoring loyalty program features to align
with specific loyalty dimensions can effectively boost customer loyalty. The study offers valuable
insights for businesses looking to enhance loyalty program success through creative and innovative
approaches.

Keywords: Loyalty programs, customer loyalty, attitudinal loyalty, conative loyalty, behavioral
loyalty, gamification, personalization, engagement-based loyalty, experience-based loyalty,
creative features, innovative features

4. Lagzouli and Barzi In their 2020 study “Qualitative analysis of the role of loyalty programs in the
retail sector”, qualitatively examine how various benefits of loyalty programs—utilitarian,
hedonistic, and symbolic—affect customer loyalty within the retail sector. Drawing on theoretical
frameworks of customer loyalty, the authors conducted interviews with retail managers to gain field
insights and refine their research approach for subsequent quantitative analysis. The findings
underscore how loyalty programs contribute to several loyalty outcomes, including increased
positive word-of-mouth, higher loyalty intentions, greater share of customer portfolio, resistance to
counter-persuasion, and repeated purchases. This study provides a subtle view of how different
types of loyalty benefits shape customer loyalty.

Major Keywords: Loyalty program benefits, store loyalty, utilitarian benefits, hedonistic benefits,
symbolic benefits, loyalty determinants, customer loyalty outcomes

5. Corbishley, Meintjes, and Mason conducted a study on “Loyalty program benefits and their effect
on relationship quality and loyalty to the retailer” in 2023, exploring how loyalty program (LP)
benefits impact relationship quality and customer loyalty within the South African fast-moving
consumer goods (FMCG) sector. The researchers aim to understand how the perceived benefits of
LPs—specifically altruistic, consumeristic, and egoistic—contribute to relationship quality
elements like satisfaction, trust, and commitment, and how these elements subsequently lead to
customer loyalty.

To investigate these relationships, the authors developed a model that includes three independent
variables (the perceived benefits) and three dependent variables (relationship quality indicators).
They conducted a quantitative survey over 11 days, collecting responses from a convenience sample
of 5000 consumers per day, yielding 1944 responses, with 479 usable replies after filtering.

Using structural equation modeling (SEM) with confirmatory factor analysis (CFA), the study
revealed that respondents perceived egoistic and consumeristic benefits similarly. Trust and
satisfaction were found to function as a single construct. Notably, both consumeristic and altruistic
benefits showed a significant positive relationship with this combined construct of trust/satisfaction.
Additionally, altruistic benefits positively influenced commitment. However, the findings indicated
that neither altruistic nor consumeristic benefits directly contributed to customer loyalty; rather,

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 loyalty was indirectly linked to the trust/satisfaction construct, with relationship quality being a
crucial precursor to achieving customer loyalty.

Keywords: Loyalty programs, relationship quality, customer loyalty, perceived benefits, altruistic
benefits, consumeristic benefits, egoistic benefits, trust, satisfaction, commitment, structural
equation modeling (SEM).

6. Pujari conducted a study in 2013 on “Relationship Marketing With Loyalty Programs In Uae
Retail Markets.” The author discusses the significance of relationship marketing and loyalty
programs within the retail markets of the UAE. Unlike traditional retail approaches that emphasize
selling, modern retail marketing prioritizes customer retention and satisfaction. This shift is largely
influenced by the digital revolution, characterized by the rise of the internet, mobile technology,
and social networking, which has ushered in a new "Information Age" for consumers.

As consumers gain easier access to information, they become more price and quality sensitive,
expecting greater value from their shopping experiences. To address these changing consumer
demands, retailers must leverage effective relationship management strategies to consistently
deliver meaningful value, differentiate themselves, and foster customer loyalty. The paper
references the well-known 80-20 rule, which posits that 80% of a company's revenue typically
comes from just 20% of its core customers.

Recognizing this, many successful retailers are increasingly adopting customer relationship
management (CRM) strategies that include loyalty programs. The aim of Pujari's study is to explore
various aspects of customer relationships in retailing and to investigate the future of loyalty
programs in the UAE market.

Keywords: Relationship marketing, loyalty programs, retail marketing, customer retention,

customer satisfaction, digital revolution, Information Age, price & quality sensitivity, customer
relationship management (CRM), UAE retail markets.

7. In the 2016 study by Hofman-Kohlmeyer- “Customer Loyalty Program as a Tool of Customer

Retention.” the author discusses the significance of customer loyalty as a valuable asset for
businesses. To foster loyalty and deepen customer attachments, many entrepreneurs are
increasingly adopting loyalty programs. The article aims to provide a theoretical framework based
on various approaches to loyalty programs and identifies the key factors that contribute to a
company's success in this area.

The study offers practical insights for managers as they develop rewarding programs, emphasizing
that these programs can serve as a source of valuable customer information, which is essential for
shaping future marketing strategies. The study concludes that loyalty programs effectively
influence customer behavior through both financial and psychological factors, which are crucial for
sustaining long-term loyalty. Additionally, it suggests that successful loyalty programs should
integrate both financial incentives and emotional components, as relying solely on financial rewards
may not ensure a lasting customer relationship.

Keywords: Customer loyalty, loyalty programs, customer retention, financial incentives,

psychological factors, marketing strategies, affective components.

8. Rahman, Kumar, Rashid & Singh, Vipul (2024) conducted a “Study of the Influence of Loyalty
Program Membership Level and Rewards Attractiveness on the Relationship between
Membership Duration and Store Loyalty.” The authors examine the role of loyalty programs (LPs)
as essential tools for relationship marketing, aimed at enhancing customer loyalty in retail settings.
While loyalty programs have gained popularity among retailers, previous research has primarily

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 focused on various aspects of these programs, particularly the impact of membership duration (the
length of time a customer has been a member) on store loyalty. However, this study addresses a gap
in the literature by exploring the interactions between loyalty program membership level and
membership duration, as well as the attractiveness of rewards offered by the program and their
influence on the relationship between membership duration and store loyalty.

The researchers collected primary data from 302 members of loyalty programs at leading
department stores in India using a structured questionnaire. The findings indicate that neither the
membership level nor the attractiveness of rewards significantly influenced the relationship
between membership duration and store loyalty. However, there were notable main effects where
membership duration, membership level, and reward attractiveness all positively impacted store
loyalty. Importantly, the study highlighted that non-tangible rewards (such as experiences or
recognition) significantly affect store loyalty, while tangible rewards (like discounts or free
products) did not have a significant impact.

Keywords: Loyalty program, membership duration, store loyalty, membership level, rewards
attractiveness, non-tangible rewards, tangible rewards.

9. Khodakarami, Petersen, & Venkatesan (2023) in their study “Customer behavior across
competitive loyalty programs” explore customer behavior in the context of competing loyalty
programs that feature multiple reward levels. They propose five mechanisms to explain how
competition among these programs influences customer purchasing decisions. Their empirical
research, utilizing data from a loyalty program management app, reveals that a customer's purchase
probability at a focal firm is affected by their activities across competing firms.

The study highlights that a customer's likelihood of purchasing from a focal firm decreases after
qualifying for a reward at a competing firm, termed "competitive mere reward qualification."
Similarly, redeeming a reward at a competing firm also lowers the purchase probability, referred to
as "competitive rewarded behavior."

Conversely, if a customer finds themselves far from both qualified and higher-level rewards at
competing firms, their likelihood of purchasing from the focal firm increases, a scenario known as
"competitive stuck-in-the-middle." Additionally, if customers ramp up their purchase frequency to
qualify for or redeem rewards at a competing firm, their purchase probability at the focal firm may
rise, termed "competitive effort balancing post qualification and redemption."

Overall, the research emphasizes that customer progress toward loyalty program goals is
significantly influenced by interactions with competing loyalty programs, demonstrating the
complex dynamics of consumer behavior in a competitive landscape.

Keywords: Customer behavior, competing loyalty programs, reward levels, goal shielding theory,
purchase probability, reward qualification, competitive dynamics

10. Uncles, Dowling, & Hammond (2003) examines in their study “Customer Loyalty and Customer
Loyalty Programs-Journal of Consumer Marketing”, the complex nature of customer loyalty and
the role of loyalty programs within this framework. They identify a paradox where customer loyalty
is often viewed as an attitude-driven phenomenon, susceptible to influence through relationship
management initiatives, including loyalty and affinity programs. However, empirical evidence
suggests that in competitive repeat-purchase markets, loyalty is primarily shaped by passive
acceptance of brands rather than strong emotional connections.

The authors present three distinct perspectives on loyalty—customer brand commitment, customer
brand acceptance, and customer brand buying—and integrate these into a comprehensive

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 framework for understanding customer loyalty. This framework enables a deeper analysis of how
loyalty programs can effectively enhance demand.

The study also highlights the limitations of loyalty programs, suggesting that their demand-
enhancing potential may be less significant than anticipated. It identifies contexts in which loyalty
programs are likely to thrive and areas where they may struggle to achieve substantial success. To
aid marketers, the authors provide a checklist that outlines key considerations when implementing
loyalty programs, emphasizing the need for a strategic approach to cultivate genuine loyalty among
consumers.

Keywords: Customer loyalty, loyalty programs, brand commitment, brand acceptance, demand-
side potential, marketing strategy

11. In the 2024 study by Miranda and Guerra, “Relationship Marketing and Customer Loyalty: A
Quantitative Analysis in the Retail Sector.” the authors examine the impact of relationship
marketing on customer loyalty within the retail sector, particularly in the context of the evolving
challenges faced by retailers, such as global recessions and political instability. Despite these
challenges, the retail sector remains a critical component of local economies.

The primary goal of the research is to explore how relationship marketing and its various
dimensions influence customer loyalty. The study employs a cross-sectional, non-experimental
methodology and utilizes a validated questionnaire distributed to a sample of 120 customers to
gather relevant data.

The findings reveal a positive correlation between relationship marketing (the independent variable)
and customer loyalty (the dependent variable), supported by Spearman’s Rho correlation test, which
yielded a coefficient of Rho = 0.639 (p ≤ 0.000). Further analysis of the dimensions of relationship
marketing shows significant relationships with customer loyalty: customer benefit (Rho = 0.318, p
= 0.000), service quality (Rho = 0.334, p = 0.000), customer orientation (Rho = 0.457, p = 0.000),
and communication (Rho = 0.475, p = 0.000).

These results underscore the importance of implementing effective relationship marketing

strategies, highlighting their direct positive effects on customer loyalty. The insights gained from
this study are particularly valuable for retail companies aiming to enhance their competitiveness in
a challenging business environment.

Keywords: Relationship marketing, customer loyalty, retail sector, customer benefit, service
quality, customer orientation, communication, quantitative analysis, correlation analysis.

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 CHAPTER 3
RESEARCH METHODOLOGY

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 Parameters Used in the Qualitative Study

1. Loyalty Programs and Benefits Analysis

This analysis focuses on the structure, features, and rewards provided by loyalty programs,
including points systems, membership tiers, types of rewards (cashback, discounts, exclusive
access), and any personalized benefits. By analyzing the structure and rewards of loyalty
programs, the study aims to understand the value proposition each competitor offers to its
customers and how it encourages long-term engagement.

2. Loyalty App Analysis

Loyalty app analysis evaluates the design, usability, and functionality of loyalty apps, focusing
on user experience (UX), ease of navigation, personalization, ease of rewards redemption, and
technical performance. The app analysis identifies how effectively each loyalty program’s app
meets customer needs, provides convenient features, and personalizes user experiences to
enhance loyalty and engagement.

3. Social Media Analysis

Social media analysis examines how brands use social media platforms to interact with
customers, promote loyalty programs, and reinforce brand presence. It includes evaluating the
types of content shared, engagement strategies, and consistency in tone and visuals. This
analysis identifies how each competitor leverages social media to promote their loyalty
programs, how they engage with followers, and the overall quality of brand-customer
interaction. This is crucial for understanding each brand's effectiveness in building and
maintaining loyalty through digital channels.

4. Marketing Strategies and Promotions Analysis

This parameter examines the strategies and promotional tactics used by brands to attract and
retain loyalty program members. It includes analyzing campaign themes, promotional
frequency, channels used, and effectiveness of calls-to-action. This analysis helps to understand
the competitive landscape of loyalty marketing, revealing how each competitor engages
customers, drives program sign-ups, and promotes loyalty benefits.

Sample Design and Sampling Selection

Sample Frame

The sample frame of the study includes people from various location who uses or had prior experiences
with Lulu Happiness program/app.

Sample size

A sample size of 30 respondents who were familiar with the Lulu Happiness loyalty program was
selected.

19
Sampling Technique

The sampling technique used for this study was convenience sampling. Convenience sampling is a type
of sampling method where the sample is taken from a set of population that is easy to reach. So, the
respondents are selected form the population at the convenience of the researcher.

Questionnaire Design

This survey uses both closed and open-ended questions, allowing respondents to rank preferences,
rate satisfaction, and provide qualitative feedback on loyalty programs. It covers demographic data,
loyalty app usage, awareness, preferences for reward types, and satisfaction with specific app features.

Instruments for Data Collection

The instruments for data collection include likert scales for satisfaction, ranking for feature
preferences, and multiple-choice options for identifying frequently used loyalty programs and long
and short type answers for collecting suggestions.

Method of Data Collection

 Primary Data

Data was collected through a survey of selected Lulu Happiness users, gathering qualitative
feedback on their experiences and perceptions of the program compared to other international
programs.

 Secondary Data

Secondary data was obtained through a review of mobile app reviews, official loyalty program
websites, marketing materials, and user feedback on social media. Additionally, secondary
sources such as social media monitoring tools, app analytics platforms, and brand websites were
utilized to validate and enhance insights.

Techniques of Data Analysis

Different techniques like Comparative Tables, SWOT Analysis, content analysis and Sentiment
Analysis where used to analyze the data in the study. Data analysis was done on the research objectives
formulated for the study were used.

20
 CHAPTER 4
QUALITATIVE DATA AND ANALYSIS

21
1. LOYALTY PROGRAM ANALYSIS

Objective: To understand the structure, features, and rewards of the loyalty programs.

Methodology: Analysed their website, mobile apps, social media, articles etc.

1.1 GREENCARD- PANTALOONS

 The Pantaloons Green Card Loyalty Program is a comprehensive customer loyalty initiative
designed to enhance the shopping experience for its members. Launched by Pantaloons, a
leading fashion retailer in India, the program aims to foster customer engagement and retention
through various benefits and privileges.
 This loyalty program offers cashback as reward points. Membership is free for Indian nationals
and can be done online or in-store.
 The value of 1 GreenCard point is ₹0.25.

Program Structure

The program has a multi-tiered, points-based structure (1-Star, 3-Star, 5-Star, 7-Star), with benefits
increasing as the member spends more.

GreenCard benefits 1 3 5 7

Annual spending to Upto ₹ 7999 ₹ 8000 – ₹ 20000 – ₹ 40000+

maintain tier ₹ 19999 ₹ 39999
Earn Cashback as Reward 0.5% 3% 5% 7%
Points
Points Accumulation (for 2 points 12 points 20 points 28 points
every ₹100 spent)
Extended Exchange Period: Yes Yes Yes Yes
90 Days
Instant redemption on the Yes Yes Yes Yes
next bill
VIP access to SALE – No Yes Yes Yes
Preview for members
Free Paper Bags (as points No No Yes Yes
credited)

Rewards and Benefits

 Cashback in the form of points (₹0.25 per point) which is redeemable immediately. Points
expire after 1 year.
 10% extra discount on the first in-app purchase.
 30% to 70% off on various items during major sales events like the Grand Online Festival Sale.
 Special BOGO offers on children's clothing, selected footwear items, and men's and women's
clothing.
Partners and Collaborations

The Pantaloons Green Card Loyalty Program has strategically partnered with several organizations to
enhance its value proposition and offer a richer experience to its members. These collaborations are
designed to provide customers with a range of benefits that extend beyond traditional retail loyalty
programs.

 Jet Airways - JetPrivilege Partnership

One of the most significant partnerships is with Jet Airways through its JetPrivilege program,
established in September 2009. This collaboration allows members of both loyalty programs to
"double dip," letting them earn rewards from both programs when shopping at Pantaloons.

Benefits for Members:

o JetPrivilege Platinum Members: Automatically upgraded to 7 Star membership in the

Green Card program, waived initial purchase requirements, earn 5 JPMiles for every
₹100 spent, and receive a 10% discount.
o JetPrivilege Gold Members: Upgraded to 5 Star membership, waived initial purchase
requirement of ₹20,000, earn 4 JPMiles per ₹100 spent, and enjoy a 7.5% discount.
o JetPrivilege Silver Members: Upgraded to 3 Star membership with a waived initial
requirement of ₹8,000, earn 3 JPMiles per ₹100 spent, and receive a 5% discount.
o JetPrivilege Blue Members: Can enroll for a nominal fee and enjoy benefits as well.

 Payback Loyalty Program

In August 2011, Pantaloons joined Payback, India’s largest multi-partner loyalty program. This
collaboration allows customers to earn Payback points on their purchases at Pantaloons.

Benefits for Members:

o Customers earn 4 Payback points for every ₹100 spent at Pantaloons.

o Special promotions include earning 10% points back on redemption, and customers
redeeming over 8,000 points receive a 20% point back.
 Karnival Suite Integration

Pantaloons has also partnered with the Karnival Suite, which has automated aspects of its
loyalty program through digital solutions. This integration enables:

Benefits for Members:

o Customers can access their loyalty points and transaction details via smart (digital)
receipts.
o Features like feedback surveys and polls help Pantaloons gather insights into
customer preferences and shopping behaviour helping to enhance customer
engagement.
User Engagement

This loyalty program employs several user engagement strategies to enhance customer satisfaction and
loyalty through various benefits like extended exchange periods, VIP access to sales events, allowing
them to shop early before the general public, which fosters a sense of exclusivity and value, the
provision of free paper bags not only adds convenience but also reflects Pantaloons' commitment to
sustainability. These incentives create a rewarding shopping experience that encourages repeat business
and strengthens customer relationships.

1.2 BLUE REWARDS - AL-FUTTAIM

The Blue Rewards program, launched by the Al-Futtaim Group, is a comprehensive customer loyalty
initiative designed to enhance customer engagement and provide personalized rewards across a wide
range of brands. It serves over 2.1 million users in the UAE, Qatar, Egypt, Oman, Bahrain, Singapore,
Malaysia, Saudi Arabia, and Kuwait. The app brings together strong propositions around rewards,
privileges, and personalized experiences within a partner ecosystem. The entire platform is underpinned
by a strong focus on data insights and personalization and rewarding customers.

Program Structure

Single-tier points-based system offering cashbacks and discounts across multiple brands with equal
benefits for all members. There are no formal tiered levels, but higher spending can lead to exclusive
events.

Users can earn points through everyday activities, in-app games, achievements, referrals, and more.
Points can be redeemed for a wide range of rewards.

Higher tiers comes with additional benefits such as:

 Higher earn rates
 Exclusive events
 Priority customer service
 Extended return periods
 Free delivery

Blue Brands
Rewards and Benefits

 The app offers exclusive cashbacks with every transaction across the Al-Futtaim retail store
network and selected partners.
 10%-15% extra off and 5x points cashback on first in-app purchase
 1000s of 2-for-1 offers across various partner brands
 Earn points across a number of different activities including play to win
 Buy & Gift Prepaid eCards
 Users have access to exclusive offers, discounts, and limited-time promotions from popular
brands and local partners.
o 5% Al-Futtaim FAB Rewards Cashback and cashback worth up to AED 6,000 per
month on purchases from Al-Futtaim Electronics, Al-Futtaim Auto Mall and Centres,
Al-Futtaim ACE, BYD Automotive, Crowne Plaza Dubai Festive City,
o 0% Easy Payment Plan (EPP) at Al-Futtaim stores, allowing for interest-free
installments on purchases.
o Unlimited 1% cashback and thousands of partner offers across various sectors. Points
expires after 12-24 months.
o Discounts are available on servicing, parts, and accessories for brands such as Toyota,
Lexus, and Honda when visiting Al-Futtaim service centers.
 Their gamification feature enables users to earn and redeem points for in-app activities
including exciting games like interactive quizzes and challenges to play providing an immersive
experience.
Ways to earn with Blue Benefits

Play Games to win Upto 1000 points

Complete your profile 1,000 Points
Refer a friend 1,000 Points
Link EmCan & earn double rewards Double Rewards
Link your Blue FAB Credit Card 5,000 Points
Streamline chores with YellowZap Double Points
Stay fresh with LaundryHeap Double Points
Stay connected with Airalo eSIM 10X Points

Blue Wallet

Users can top up with a 2% bonus, send digital gift cards, enjoy seamless checkout, and keep track of
their growing cashback/points balance. Customers in the UAE also have access to one of the most
popular and best value credit cards in the market, Blue FAB Credit Card by Al-Futtaim which offers
benefits like:

 12 months 0% instalment plan

 No annual fee
 Exclusive 2-for-1 offers available in Blue Rewards when you link your card
Blue Partners

 Emarat's EmCan Program: One of the most notable collaborations of Blue Rewards. With this
partnership they lauched the ‘Double Dipping’ feature that allows members to earn double
rewards with every transaction at Emarat petrol stations and Al-Futtaim Group brands. Provides
exclusive rewards on fuel, Lube Express, Carwash, Bakeria and Cafe Arabicca. Once can earn
1 Blue point for every AED 4 spent on top of your EmCan points.
 IBM Consulting: Al-Futtaim has collaborated with IBM Consulting to upgrade the Blue
Rewards platform, focusing on improving user experience and [Link] collaboration
has led to significant growth in user engagement, with over 3 million users on the platform.
 Some benefits offered by the Blue Partner:

Airalo 10x points on every eSIM purchase

YellowZap Double points & 25% off on every transaction
Noon 15% cashback in Noon Wallet on all purchase
NowNow 50% every purchase
Cleartrip 5% off on one-way and round-trip flights
EaseMyTrip 10% off flights & hotels
Shein 20% off on all online purchases
Carnival park & Fujairah 20% off on all activities
Adventure Park
CueMath 25% off 3,6 & 12 month packages

User Engagement

The Al-Futtaim Blue Rewards program employs a multifaceted approach to user engagement through
personalized experiences, gamification, seamless transactions, exclusive offers, community
involvement, continuous improvement, and cross-brand benefits. These strategies not only enhance
customer satisfaction but also foster loyalty among users, making the program an effective tool for
driving business growth in a competitive retail landscape.

1.3 TARGET CIRCLE

The Target Circle loyalty program launched by Target in 2019, is designed to enhance customer
engagement and provide personalized shopping experiences. It allows members to earn rewards, access
exclusive deals, and participate in community support initiatives. The program has undergone
significant enhancements, including the introduction of a paid membership tier called Target Circle
360, which offers additional benefits for a fee.

Program Structure

The Target Circle is a free point-based initiative program. Single-tier system where all members earn
1% cashback. The members earn 1% back on every eligible purchase made at Target in-store or online.
Points accumulate and can be redeemed as discounts on future purchases. Accumulated rewards can be
applied during checkout either in-store or online. For every 100 points (which is equivalent to 1%), you
get $1 back in rewards to use toward future purchases.

Target Circle Card is a store credit card that requires credit approval and offers enhanced benefits,
most notably 5% back on all Target purchases. While Target Circle Card members automatically get
all Target Circle benefits, they also receive additional perks.

Target later revamped its loyalty offerings with the introduction of Target Circle 360, a paid
membership option that provides additional benefits compared to the free Target Circle program.

Rewards and Benefits

Benefits Target Circle Target Circle Card Target Circle 360

Membership Type Free Credit card Paid
Earning Rewards
Base Earnings 1% back on purchases 5% back at Target 5% back at Target
Additional 5% back on Additional 5% back on
Bonus Categories -
specialty items specialty items
Birthday Reward 5% off 5% off 5% off
Yes + Extra Exclusive
Target Circle Offers Yes Yes
Offers
Shipping Benefits
Standard shipping Free 2-day shipping on Free 2-day shipping
Free Shipping
rates apply $35+ with no minimum
Unlimited free same-
Same-Day Delivery Standard rates apply Standard rates apply day delivery on $35+
orders
Shopping Experience
Early Access to Sales Early Access to Sales Limited Yes- Priority access
Return Window 90 days 120 days 120 days
Price Adjustments 14 days 14 days 14 days
Additional Perks
Community Support 1% to charity 1% to charity 1% to charity
Premium partner
Partner Benefits Basic Enhanced
benefits
Extended Returns No Yes - Extra 30 days Yes - Extra 30 days
Exclusive Collections No Early access Priority early access
Card Benefits
Annual Fee Free No annual fee $99 annual fee
Foreign Transaction No foreign transaction No foreign transaction
N/A
Fee fees fees
Cell Phone Protection No Yes (with card use) Yes (with card use)
Special Services
Exclusive Customer
No Priority service Dedicated support line
Service
Free Starbucks 2 free beverages per
No No
Beverages month
Shipt Membership No Discounted Included
Additional Family
N/A Yes Yes - Up to 4
Cards

Target Circle Partners

The Target Circle program offers members exclusive perks and benefits through partnerships with
various brands, enhancing the overall shopping experience.

 Ulta Beauty Rewards: Members can earn Ulta Beauty Rewards points, allowing them to benefit
from both Target and Ulta's loyalty programs, amplifying their rewards potential. Users have
to link their Ulta Beauty Rewards and Target Circle account to receive exclusive perks and earn
Ulta Beauty Rewards points when they shop Ulta Beauty at Target.
 Apple Services: Members can enjoy access to Apple services for free, enhancing entertainment
options and lifestyle benefits.
o Apple TV+, Apple Fitness+, Apple Arcade and iCloud+ free for 3 months
o Apple Music free for 2 months

User Engagement

Target engages customers through personalization, clear rewards structures, community involvement,
a seamless user experience, and effective communication. The program tailors offers based on
individual shopping habits, ensuring members receive relevant deals that enhance emotional
connections. Customers earn 1% back on purchases, which is straightforward and motivating, while
also having the opportunity to vote on local non-profits for charitable contributions, aligning Target
with socially conscious values. A user-friendly app and website allow easy tracking of rewards and
automatic discount applications at checkout, and regular updates via email and notifications keep
customers informed and engaged. This comprehensive strategy fosters customer satisfaction and
cultivates lasting loyalty.

1.4 TESCO CLUBCARD

The Tesco Clubcard is a pioneering loyalty program launched in 1995, designed to reward customers
for their shopping habits at Tesco, the UK's largest supermarket chain. With over 20 million users, the
program operates on a point-based system where customers earn points for every pound spent in-store
and online. The Clubcard not only enhances customer engagement by offering personalized rewards
and discounts but also provides exclusive access to partner offers, making it a key component of Tesco's
customer retention strategy. The program has evolved significantly over the years, incorporating
technology and data analytics to tailor experiences and incentives for its members.
Program Structure

The Tesco Clubcard operates on a point-based structure where members can earn 1 point for every £1
spent at Tesco stores or online. Points can also be accrued through various Tesco services, such as Tesco
Bank and fuel purchases. Once enough points are collected, members receive vouchers that can be
redeemed for discounts on future purchases or used with partner brands for enhanced value.

Every 150 points is equal to £1.50 in Clubcard vouchers and these vouchers are valid for 2 years from
the issue date.

The program features Clubcard Prices, which are exclusive discounts available only to Clubcard
holders, incentivizing membership and frequent shopping.

Rewards and Benefits

The Tesco Clubcard loyalty program offers a wide range of rewards and benefits designed to enhance
the shopping experience for its members.

Members benefit from Clubcard Prices, which offer exclusive discounts on around 8,000 products in-
store and online. These prices can result in significant savings, with reports indicating that customers
could save up to £360 annually on their grocery bills through these discounts.

 Fresh Produce: Up to 20% off

 Meat and Poultry: Up to 30% off
 Snacks and Beverages: Up to £2.00 off
 Household Essentials: Up to 25% off
 Frozen Foods: Up to £1.50 off
 Special Grocery Promotions: £1.00-£3.00 off on selected everyday essentials like pasta,
sauces, and canned goods.

Tesco has recently introduced Clubcard Challenges, a hyper-personalized initiative where members
can participate in tailored challenges to earn additional points. Members can choose from a set of 20
challenges, completing up to 10 to earn a maximum of £50 in extra Clubcard points.

Approximately three million Clubcard holders are invited to participate based on their engagement
levels with Tesco's digital platforms. Members can earn up to £50 in Clubcard points by completing
these challenges, which can be doubled to £100 when redeemed with Tesco’s Reward Partners. This
gamified approach not only incentivizes spending but also encourages customers to explore different
product ranges.

Users are asked to:

 Spend £20 on the Summer BBQ range over the next six weeks.
 Spend £10 on plant-based meals.
 Spend a certain amount ( £4, £7, or £9) on specific brands or product categories, with higher
spending yielding more points.
 Try new products or categories that align with personal preferences, encouraging members to
explore different items in-store.
 Participate in challenges linked to promotional events or seasonal sales, such as holiday-themed
products.

Tesco Clubcard Pay+

The Tesco Clubcard Pay+ is a prepaid debit card designed to enhance the Clubcard loyalty experience
for Tesco [Link]’s an account that lets users pay, pick up extra Clubcard points and round up their
spending into a savings pot, when shopping in and out of Tesco. It is available to Tesco Clubcard
members who are resident in the UK and aged 18 or over.

Benefits include:

 1 point for every £1 spent at Tesco

 1 point for every £8 spent outside Tesco
 1 point for every 1 litre of Tesco fuel bought

Tesco Clubcard Partners

 Disney+: Tesco Clubcard holders can exchange just £8 worth of vouchers for a full three-month
subscription to Disney+, valued at £23.97 (£7.99/month).
 The AA (Automobile Association): Members can access exclusive offers related to travel and
vehicle services including roadside assistance, travel services, and insurance products.
 Royal Caribbean International: Tesco Clubcard members can redeem their points for discounts
on luxury cruises with Royal Caribbean.
 Early Table: Partners with restaurants to offer exclusive discounts or deals for Clubcard
members.
 GoCar : Clubcard holders can use their points for discounts on car rentals through GoCar.

User Engagement

The introduction of Clubcard Challenges allows members to participate in tailored tasks that encourage
increased spending and exploration of new products. Valuable partnerships with various brands provide
exclusive discounts and double value on redeemed points, enhancing the overall value proposition of
the Clubcard. The program also features Clubcard Prices, which offer exclusive discounts on thousands
of products, saving customers significantly on their grocery bills. By leveraging customer data to deliver
personalized offers and creating a seamless digital experience through the Clubcard app, Tesco
effectively keeps customers engaged and encourages them to return for more rewarding experiences.
This multifaceted strategy not only drives customer loyalty but also positions Tesco as a leader in the
competitive retail landscape.

5. LULU HAPPINESS

The Lulu Happiness loyalty program was initially launched in 2015 as a mall program with basic
functionalities but was relaunched on October 17, 2023, as a revamped loyalty program. This new
iteration aims to enhance customer engagement and satisfaction by offering a more streamlined and
rewarding shopping experience.

As a relatively new program, Lulu Happiness is in the process of building and expanding its features
and benefits to better serve its members.

The program allows members to earn points on every transaction, fostering a sense of loyalty and
encouraging repeat visits. By offering a seamless way to accumulate and redeem points, Lulu Happiness
aims to create a rewarding shopping experience that adds value to each purchase.

Program Structure

Lulu has a multi-tiered, points-based structure that is free of cost.

 Smiles: points received for spending in Lulu Retail outlets (Lulu Hypermarket, Lulu Fashion
Store, Lulu Celebrate, Lulu Connect and Lulu Online)
 Cheers: points received for spending in non-Lulu Retail outlets.
 10 smile/cheer points = ₹1

Rewards and Benefits

Benefits Joy Bliss

Annual spending to maintain up to ₹29,999 Above ₹30,000
tier
Reward points Yes, for every ₹200 spent Yes, for every ₹200 spent

No smile points + 5 smile points

Cheers 10 cheers for every 100 spent 10 cheers for every 100 spent
Birthday month surprises. Yes Yes
Exclusive Offers Yes Yes
Smiles validity 1 year 2 years
Cheers validity 1 year 1 year
Convenience fee for online Yes No
orders

Other benefits

 Lulu Happiness offers an "Early Access Bonanza" that gives its members the exclusive
privilege of accessing sales before the general public.
  Dine-in offers from 10% - 20% discount in various restaurants like Punjab Grill, Costa Coffee,
Paragon, Grillax, Falooda Nation etc..
 Member Pricing: Exclusive member prices are available for select items, providing additional
savings opportunities.
o Grocery: extra 10% off
o Non-food grocery: extra 10% off
o Health and beauty: extra 10% off

Points Redemption

 Smiles can be redeemed at the checkout where the customers can identify themselves using
their registered mobile number or by showing a QR code from the Lulu Happiness app.
 Cheer points can be redeemed by converting them into vouchers of various brands within Lulu
Malls.
o Sylcon offers ₹500 voucher for 500 cheer points.
o Samsonite offers ₹500 voucher for 1000 cheer points.
o Birkenstock offers ₹1000 voucher for 10,000 cheer points.
o Puma offers ₹1000 voucher for 10,000 cheer points.
o Lenskart offers ₹500 voucher for 5000 cheer points.
o Other participating brands are: Acer, Rare Rabbit, Pepe Jeans, Armani Exchange,
Celio, V Star, Mocha, Nescafe, Tita, Nykaa and more.

User engagement

The Lulu Happiness loyalty program effectively engages users through its points-based system,
exclusive member pricing, discounts in partner restaurants, and seamless point redemption via mobile
or app QR code. Additionally, users benefit from a wide range of voucher redemption options across
brands, creating a sense of value and continuous engagement.

However, improvements could include enhanced personalization by offering tailored rewards based on
shopping preferences, adding gamification features like quizzes or challenges to increase interaction,
and creating exclusive events or early access sales for members. Implementing a referral program would
boost community-driven engagement, while refining the app's user interface for smoother navigation
and better reward tracking could further enhance the overall user experience and retention.
 COMPARATIVE ANALYSIS OF THE LOYALTY PROGRAMS

Features Lulu Pantaloons Blue Rewards Target Circle Tesco Clubcard

Happiness GreenCard
Program Tiers 2 tiers 4 tiers Single tier 2 tiers Single tier
Annual Spend Joy: Up to 1★: Up to No requirements Free tier: None No requirements
Requirements ₹29,999 ₹7,999
3★: ₹8,000- Paid tier:
Bliss: ₹30,000+ 19,999 $99/year
5★: ₹20,000-
39,999
7★: ₹40,000+
Base Earning 1 point per ₹200 1★: 0.5% Varies by 1% base 1 point per £1
Rate 3★: 3% activity and 5% with Target
partner Card
5★: 5%
7★: 7%
Point Value 10 points = ₹1 1 point = ₹0.25 Point value 100 points = $1 150 points =
varies by £1.50
redemption
Point Expiry Joy: 1 year 1 year 12-24 months No expiry 2 years
mentioned
Bliss: 2 years

Table 1: Core Program Structure and Features

Inference: From this program structure comparison, Pantaloons GreenCard offers the most
sophisticated tiered system (4 tiers) with increasing earning rates (0.5% to 7%) based on spending
levels. Lulu Happiness has a simpler two-tier structure with a flat earning rate (1 point per ₹200),
while Blue Rewards, Target Circle, and Tesco Clubcard keep it even simpler with single tiers or
minimal requirements. Tesco stands out with the longest point expiry period (2 years) and a
competitive point value (150 points = £1.50).

Pantaloons
Benefits Lulu Happiness Blue Rewards Target Circle Tesco Clubcard
GreenCard
Member pricing Instant
Immediate 10-15% off first Access to Circle Clubcard prices
10% off select redemption on
Discounts purchase prices on 8,000+ items
categories next bill
Early access to VIP sale Early access to Early access to Priority access
Special Access
sales preview (3★+) events sales to deals
Birthday Birthday 5% off birthday
No No No
Benefits surprises shop
Free paper bags Clubcard
Gamification Free shipping
(5★+) challenges
Additional Free online rewards
Perks delivery (Bliss) Same-day
Extended Personalized
Shop & win delivery
exchange offers
Games, profile
Extra Earning RedCard 5% Bonus point
No No completion,
Opportunities bonus events
referrals

Table 2: Benefits and Rewards Structure

 Inference: Based on the benefits comparison, Lulu Happiness offers basic loyalty perks (10% member
pricing, early sale access, birthday surprises, free delivery) but lacks extra earning opportunities. Its
competitors provide more comprehensive benefits, with Blue Rewards and Target Circle standing out
through gamification features and additional earning methods. Tesco Clubcard shows strength in its
extensive discounted item range (8,000+ items) and personalized approach.

Pantaloons
Features Lulu Happiness Blue Rewards Target Circle Tesco Clubcard
GreenCard
Basic
Games
functionality Integrated
Digital receipts Digital vouchers
shopping
Mobile App Interactive
Point Experience
Features Customer features Personalized
redemption
feedback offers
through QR personalization
Digital wallet
code at checkout
Digital Karnival Suite IBM consulting Fully integrated Advanced data
Limited
Integration integration platform omnichannel analytics
Emarat
Disney+
Limited mall
Jet Airways YellowZap
brands Ulta Beauty
AA
Key Partners
Payback Airalo
Local Apple services
program Royal Caribbean
restaurants
Multiple retail Restaurants
brands
10-20% Double/ Extended
Participating Airline miles
restaurant multiple points services Up to 3x value
brand/
discounts on partner
Partner Double dipping
Partner Free rewards
Benefits benefits
Brand vouchers discounts subscriptions

Table 3: Digital Integration and Partner Ecosystem

Inference: The comparison reveals that Lulu Happiness operates a basic loyalty program with limited
digital integration and a narrow partner network focused on local businesses, while its competitors offer
more sophisticated features, broader partner ecosystems, and advanced digital capabilities like omni-
channel integration and comprehensive data analytics.

Lulu Pantaloons Tesco

Features Blue Rewards Target Circle
Happiness GreenCard Clubcard
Customer AI-driven Personalized Data-driven
Personalization Basic
feedback based personalization offers targeting
Play to win
Clubcard
Gamification None None None
Points for challenges
activities
Interactive in- Personalized
Communication Standard Multi-channel Omni-channel
app digital

Table 4: Engagement and Personalization

Inference: The engagement comparison shows Lulu Happiness lagging with basic personalization and
standard communication, while competitors offer more sophisticated features. Blue Rewards leads in
engagement with AI-driven personalization and gamification elements, while Tesco Clubcard and
Target Circle excel in data-driven targeting and omni-channel communication.

Program Key Differentiators Unique Features Innovation Elements

Dual currency
Early access sales
(Smiles/Cheers)
Lulu Happiness Limited innovation
Member pricing
Mall-wide acceptance
High earn rates Instant redemption
Pantaloons
Partner integration
GreenCard
Multiple tiers Extended exchange
Extensive gamification Play to earn
Blue Rewards Advanced platform
Multi-brand ecosystem Digital wallet
Free/paid tier model Same-day delivery
Omnichannel
Target Circle
integration
RedCard integration Community giving
Extensive partner
Clubcard challenges
network Data-driven
Tesco Clubcard
engagement
Personalized offers
Price matching

Table 5: Unique Value Propositions

Inference: Each program shows distinct value propositions: Lulu Happiness keeps it simple with mall-
wide acceptance and dual currency, but lacks innovation. Competitors offer more sophisticated features
- Blue Rewards focuses on gamification and digital integration, Target Circle emphasizes omnichannel
experience with free/paid tiers, Tesco Clubcard leverages data-driven engagement with extensive
partnerships, and Pantaloons GreenCard differentiates through high earn rates and multiple tiers.

Competitor Improvement
Aspect Current State
Benchmark Opportunity
Program Multi-tier with clear Introduce intermediate
Basic two-tier
Structure benefits tiers
Earning Variable rates, Implement bonus
Fixed rate
Mechanics multipliers categories
Enhance app
Digital Features Limited Advanced functionality
capabilities
Expand strategic
Partner Network Restricted Extensive ecosystems
partnerships
Interactive,
Engagement Basic Implement gamification
personalized
Develop premium
Value Proposition Standard Enhanced experiences
benefits

Table 6: Areas of Opportunity for Lulu Happiness

Inference: This analysis clearly shows Lulu Happiness's gaps against competitors and opportunities for
improvement. Currently offering basic features across all aspects (two-tier structure, fixed rates, limited
digital features, restricted partners, basic engagement), Lulu has clear paths for enhancement by: adding
intermediate tiers, implementing bonus categories and gamification, expanding digital capabilities,
growing strategic partnerships, and developing premium benefits to match competitors' enhanced
experiences. Each identified opportunity directly addresses a gap against competitor benchmarks.
SWOT Analysis of Lulu Happiness (Loyalty Program Analysis)

STRENGTH WEAKNESS

Established Brand Presence Limited Personalization

Diverse Product Range No Gamification Features

Wide Voucher Redemption Options Limited Tier Benefits

Early Sale Access Insufficient Partnerships

OPPORTUNITIES THREATS

Partnership Development Strong Competitor Programs

Incorporation of Gamification features Changing Consumer Preferences

Personalised offers Lack of Differentiation

2. MOBILE APP ANALYSIS
Objective: To assess the app design, features, user experience and overall functionality of each
application.

Methodology: Mobile apps are downloaded and analyzed in-depth through direct app usage. Google
Play Store –‘user ratings and reviews’ analyzed to understand user experience.

2.1 PANTALOONS GREENCARD

Pantaloons GreenCard is the loyalty program offered by Pantaloons, one of India's leading fashion retail
chains. Its mobile app is a multi-purpose platform designed for both loyalty and non-loyalty members.
Through the mobile app, users (both loyalty and non-loyalty members) can shop, greencard (loyalty)
members can track their points, explore member-only discounts, and stay updated with the latest sales
events. The app aims to enhance the customer experience by providing a convenient and personalized
shopping journey.

App Design
 The visual appeal, aesthetics and consistency with the brand’s identity is highly evident with
its trademark green and white colour palette usage across the app.
 It has a fashion-forward interface.
 The home screen displays multiple carousel type banners, latest collections, seasonal
collections, gender-based collections making it easy for users.
 Navigation tabs like home, customer wishlist, search bar, notifications, user profile, shopping
cart etc. are clearly marked.

Features
 Allows users to track rewards points, upcoming sales, currently running sales and exclusive
offers.
 Users can see which greencard tier they are currently in.
 Personalised product findings using “Style finder” where customers can find specific products
they are looking for without any hassle.
 App allows users to scan or type product barcodes to see if it’s available in the app for better
offers and other benefits.
  There are two modes in the app- Entire Collection and Store Mode, entire collection allows
visibility of all products while store mode locates ur nearby stores or store of choice so that user
can see all product available in the selected store.
 Customer support- chat, contact us CTAs are clearly locatable.
 Users can track their orders easily through “Order tracking” feature.
 Integration with Pantaloons’ loyalty card allows for points to be added through both app and
in-store purchases.

Personalization
 Basic level of personalization through purchase history.
 Limited ability to customize notifications or offers based on preferences.
 Location-based offers and store-specific promotions are available.

User Experience (UX)

 Occasional lags in app performance and loading times during peak periods.
 The app is easy to navigate.
 The app features a straightforward interface that is easy to navigate. Users can quickly check
their points balance and available offers.
 Easy reward redemption process
 Apply Points at Checkout: During the checkout process, users have the option to apply their
GreenCard points to the total amount and the corresponding value will be deducted from
the bill.
 Use Coupons or Offers: Sometimes, GreenCard benefits include exclusive coupons or
discounts, which will be visible in the ‘Apply Coupons’ section of the app. Users can apply
these at checkout as well.
 Some negative comments (comparatively very less) on the app are based on product quality,
customer service, and the returns process.

User Ratings and reviews

On the basis of the user reviews and ratings collected from Play Store, there are 4610 ratings and 4330
reviews. Since this app is their online shopping app and not solely for their loyalty program, the reviews
and ratings includes both online shopping experiences and few about mentioning greencard. However,
the sentiment analysis show user’s overall experiences with the app.

Ratings Count
1 1258
2 262
3 251
4 529
5 2310
 Pantaloons App Rating
(Jan 2024 - June 2024)
2500

2000

1500

1000

500

0
0 1 2 3 4 5 6

Sentimental Analysis based on the reviews

Sentiment Timeline Sentiment breakdown

700
600
positive
500
400
negative
300
neutral
200 neutral
100
positive
0 negative

0 1000 2000 3000

Overall Sentiment Score of Pantaloons Mobile App

 Negative: 810
 Neutral: 770
 Positive: 2750
 Total: 4330 Responses

To calculate the sentiment score, we give weights to each sentiment:

 Negative = 0
 Neutral = 0.5 (middle point)
 Positive = 1

Calculating the weighted sum:

(810 × 0) + (770 × 0.5) + (2750 × 1)

= 3135

Calculating the final percentage:

 (Actual weighted sum ÷ Maximum possible score) × 100

(3135 ÷ 4330) × 100

= 72.4%

2.2 BLUE REWARDS

The multi-brand loyalty program offered by the Al-Futtaim Group in the UAE, covering a diverse range
of industries, including retail, automotive, and lifestyle sectors. This program allows members to
accumulate points across a vast ecosystem of brands, including Ikea, Marks & Spencer, Toyota, and
more. Blue Rewards emphasizes versatility, enabling users to earn and redeem points across various
categories seamlessly through its mobile app. The app delivers a minimalistic and user-friendly
interface, offering real-time notifications of exclusive deals, personalized offers, and nearby store
promotions. As a multi-sector loyalty program, Al-Futtaim Blue Rewards sets itself apart by leveraging
geo-location and cross-brand benefits, making it a unique and comprehensive rewards system in the
UAE’s competitive retail market.

The Blue Rewards app is exclusively dedicated to its loyalty program. Its primary and only function is
to manage user interactions with the loyalty system.
App Design

 Modern and visually appealing with a clean layout that emphasizes usability.
 Consistent brand colour application using deep navy blue and white combination giving the
mobile app a premium look and feel.
 Consistent brand elements.
 Smooth transitions.
 Rich and professional media integration.
 The home screen displays multiple carousel type banners, about various partner brand
discounts, benefits and offers.
 Navigation tabs like home, offers, search bar, blue wallet and user profile are clearly marked.

Features

 Cross-brand point accumulation and redemption.

 Transaction history is detailed and easy to access.
 Offers multi-lingual support (Arabic and English).
 Blue Wallet feature that enhances the digital transaction experience.
 A barcode feature that helps users to earn and redeem cashbacks by scanning it.
 Regional personalisation is high.
 Showcases current offers, discounts etc on various blue brands and partners.
 “Quick link” option where users can easily find exclusive offers, top-up options, various offers
under each categories etc making navigation smooth.
 Games and other features like “refer a friend” that let users collect points.

Personalization

 Strong focus on data insights allows for personalized offers based on user behavior and
preferences, enhancing customer satisfaction.
 Cross-brand preferences.
 Location-based offers.

User Experience (UX)

 The app provides quick access to account balance, offers, and nearby stores.
 User journey is straightforward, with well-organized categories for rewards and offers.
 Highly rated for its intuitive design and ease of use. The on boarding process is smooth,
allowing users to quickly understand how to earn and redeem rewards.
 There is minimal to no lag experienced while using the mobile app.
 Despite the app having a lot of features, there are some issues that the users experience:
 Users frequently comments on the difficult login process and multi-step authentication that
causes frustration and reduces users’ willingness to engage further.
 Coupons occasionally fail to apply correctly during checkout disrupting users’ ability to
enjoy program benefits as intended.
 Frequent pop-ups interrupt the browsing experience.
User ratings and reviews

Ratings Count
1 460
2 60
3 30
4 30
5 210
Blue Rewards App Rating
(Jan 2024 - June 2024)
500

400

300

200

100

0
0 1 2 3 4 5 6

Sentimental Analysis based on the reviews

Sentiment Timeline Sentiment Breakdown

120
100 positive
80
60 negative
40 neutral
20 neutral
0
positive negative

0 100 200 300 400

Overall Sentiment Score of Blue Rewards Mobile App

 Negative: 310
 Neutral: 160
 Positive: 280
 Total: 750 Responses

Calculating the weighted sum:

(0×310) + (0.5×160) + (1×280)
= 360
Calculating the final percentage:
(Actual weighted sum ÷ Maximum possible score) × 100
((360/750) × 100
= 48%
2.3 TARGET CIRCLE

The Target mobile app is a retail shopping platform that provides strong functionality, appealing design
and personalized shopping experiences. By integrating savings, community engagement, and seamless
checkout options, it caters well to frequent shoppers looking for convenience and deals. The structured
navigation and emphasis on rewards keep users engaged and likely contribute to customer loyalty.

App Design

 The app uses a predominantly dark theme with white and red accent colors, which creates a
modern, sophisticated look and provides excellent contrast for content visibility.
 Target has a dynamic theming strategy where the theme of the app interface changes according
to various seasons and occasions. For eg: the current theme of the app is “Halloween”. During
Christmas, target app has red and white colours to match the theme. This helps Target to
effectively promoting seasonal merchandise and offers.
 The app greets the user by name, creating a welcoming feel.
 The home screen displays multiple carousel type banners, clear labels of categories like top
deals, grocery, pick up, delivery etc for easy navigation.
 Each page has a clean, organized structure, reducing cognitive load.
 The app uses simple, intuitive icons on the bottom navigation bar, including a home icon for
"Discover," a cart icon, and a wallet icon.
 The cart interface is clean, showing a detailed summary of items, including prices, shipping
options, and estimated arrival times.
 Action buttons are designed to encourage immediate actions.
Features

 The app features a well-organized list of categories, including essentials like groceries,
household items, clothing, and pets. Users can browse top deals, weekly ads, and more, directly
aligning with Target's wide product selection.
 The "Target Circle" loyalty program is integrated within the app. Users can apply discounts,
track rewards, and use gift cards, all from the "Wallet" section, making it a one-stop solution
for savings and loyalty features.
 The app supports both pickup and delivery options, allowing users to choose based on
convenience, a "Drive Up" feature facilitating easy order pickups.
 A "Show my barcode" option in the Wallet allows users to scan for discounts and payments at
checkout, integrating the online and in-store experiences seamlessly.
 #TargetStyle featuring their customers and influencers using and wearing target‘s products.
 The “Essentials” section highlights various products under each category and also personalised
offers tailored according to the users preferences, search and purchase history.
 The "Wallet" section includes exclusive discounts, Target Circle offers, and gift cards. This
focus on savings is central to Target's branding, making it a valuable tool for price-sensitive
customers.
 The "My Target" section provides access to purchase history, making it easy for users to reorder
essentials, manage returns, and review past purchases.

Personalization

 The app shows personalized content in the "Top categories for you" section, helping users
discover products tailored to their preferences.
 Customized wallet & rewards offers based on the user’s spending and preferences, the app
personalizes available discounts and Target Circle rewards.
 User-specific notifications such as "You have 2 new circle bonuses" add a personal touch.
 Location-based services where target allows users to choose their store of choice thus
displaying store-specific inventory, drive-up service availability and delivery options based on
their location.

User Experience

 The app is highly regarded for its mobile-first approach, making it easy to use while shopping
in-store or online.
 Users appreciate the real-time updates and notifications.
 The app has a bottom navigation bar with clear icons for main sections like "Discover,"
"Essentials," "Wallet," "Cart," and "My Target," simplifying navigation.
 Personalized suggestions based on past interactions, enhancing the feeling of exclusivity among
users.
 The app allows users to choose between single-item and full-cart checkouts, which speeds up
the purchasing experience.
 The app highlights rewards earned and community support, making users feel connected and
valued.
 App shows a "You've saved" section, which can serve as positive reinforcement for loyalty.
 Along with a lot of good customer experience, the Target app has been facing significant
criticism with many users express frustration primarily due to issues with app functionality and
customer service, leading to a high volume of negative feedback.
  A substantial number of users report difficulties logging into the app, with nearly 10%
unable to access their accounts.
 Users have reported significant downtime, with around 71% experiencing functionality
issues.
 Many reviews highlight inadequate customer service responses, with users feeling their
concerns are not addressed promptly or effectively.
 Frequent bugs and crashes further causes user dissatisfaction leading to a poor user
experience, prompting users to leave negative reviews.
 Users have expressed frustration over a lack of communication from Target regarding
ongoing issues or updates about the app's performance.

User Ratings and Reviews

Ratings Count
1 5461
2 1182
3 979
4 512
5 3950

Target App Rating

(Jan 2024 - June 2024)

6000

5000

4000

3000

2000

1000

0
0 1 2 3 4 5 6

Sentimental Analysis based on the reviews

Sentiment Timeline Sentiment Breakdown

1400
1200
positive
1000
800
negative
600 neutral
400 neutral
200 positive
0 negative

0 1000 2000 3000 4000 5000

Overall Sentiment Score of Target Mobile App

 Negative: 4070
 Neutral: 2040
 Positive: 4570
 Total: 10680 Responses

Calculating the weighted sum:

(0×4070) + (0.5×2040) + (1×4570)
= 5590
Calculating the final percentage:
(Actual weighted sum ÷ Maximum possible score) × 100
(5590/10680) × 100
= 52.3%

2.4 TESCO CLUBCARD

The Tesco mobile app is a versatile shopping companion designed to make grocery shopping simpler,
faster, and more rewarding for customers. With its clean and intuitive design, the app offers seamless
access to a variety of Tesco services, including online shopping, loyalty rewards, and personalized
deals.
App Design

 The Tesco Clubcard app design reflects a clean, user-centric layout with a predominantly blue
and white color scheme, which aligns with Tesco’s brand identity.
 The layout is well-structured, with clearly defined sections and navigation elements like
‘Home”, “Favorites”, “Search”, “Clubcard” and “Basket” making it easy for users to navigate
the app.
 The use of icons, cards, and visual cues helps to quickly convey information and enhance the
overall aesthetic.
 The app features a responsive design, adapting the layout and content to different screen sizes,
ensuring a seamless user experience on devices.
 Tesco has used simple, readable fonts and universally recognized icons for shopping categories,
basket, offers, and account settings, enhancing usability across demographics.

Features

 The home tab displays “order online” and “shop in store” options, so users can conveniently
see the availbale products, offers, discounts, and promotions of both physical store and online
store.
 The app divides products into comprehensive categories, like "Groceries," "Household
Essentials," and seasonal sections like "Christmas" and "Halloween," allowing users seeking
targeted shopping experiences to browse based on specific needs or events.
 All products and categories with clubcard discounts are highlighted with “Clubcard Price” tags
encouraging app engagement and loyalty program use.
 There’s a “shopping list” feature, enabling users to create and manage their grocery lists for a
more efficient shopping experience.
 The app provides access to a variety of Tesco’s marketplace items, extending beyond grocery
items to include electronics, gaming, furniture, and more.
 Users can add frequently purchased items to their “Favorites” or create a shopping list, which
streamlines their shopping process, making repeat purchases more convenient.
 A barcode scanner allows users to scan items in-store to check prices, Clubcard points, and
exclusive offers.
 Users can view and redeem their Clubcard points in the “Clubcard” tab directly through the
app. They can also see if they are eligible for vouchers and how many more clubcard points
they need to access various vouchers.
 The basket options, after adding needed products will show users their clubcard discounts for
those products and the clubcard point they will get with that purchase.
 The app provides an easy checkout process with options for home delivery, click-and-collect,
and scheduling specific time slots. This flexibility caters to various customer preferences and
enhances accessibility.

Personalization

 The app offers a personalized experience by displaying the user's name and Clubcard details
prominently on the home screen.
 Users see exclusive discounts and Clubcard prices on products that align with their past
purchases.
 The app's allows users to save and access their frequently purchased items or preferred products
for easier shopping.
  Based on purchase history and browsing behavior, the app suggests items under “Favourites”
and “Recently Bought.”
 Store locator and local availability check features help users identify nearby stores and check
stock at their preferred location making the app useful for both online and in-store shopping.
 Users can customize their app settings, including notification preferences and marketing
preferences, to tailor the app to their individual needs and preferences.

User Experience

The Tesco Clubcard app offers a highly user-friendly experience, focusing on ease of access,
functionality, and engagement.

 The app’s layout is consistent, ensuring a predictable experience as users browse, shop, and
check out.
 The app's navigation is intuitive, with a clear and logical hierarchy, making it easy for users to
find the information or functionality they need.
 With categorized tabs and quick access to commonly used features like “Basket” and
“Favorites,” users can easily find what they need.
 The app seamlessly integrates Tesco’s loyalty program, where users can view their points,
rewards, and savings motivating repeat usage and also ensuring transparency and fostering
trust.
 The app's responsiveness and fast loading times contribute to a smooth and efficient user
experience, particularly when checking stock, managing their Clubcard, or placing orders.
 The app's use of visual cues, such as product images and icons, enhances the user's
understanding and engagement with the app's features.
 The checkout process is straightforward, with clear steps for payment and delivery preferences.
 Some negative reviews consists of users commenting on:
 Wanting just tesco products in the app.
 Barcode not responding when scanned sometimes.
 Favourites not updating products when added.

User ratings and reviews

Ratings Count
1 7921
2 2410
3 2799
4 7341
5 37104
 Tesco App Rating
(Jan 2024 - June 2024)
40000

35000

30000

25000

20000

15000

10000

5000

0
0 1 2 3 4 5 6

Sentiment Analysis based on reviews

Sentiment Timeline Sentiment Breakdown

8000
7000
6000 positive
5000
4000 negative
3000 neutral
2000 neutral
1000 positive
0 negative

0 10000 20000 30000 40000 50000

Overall Sentiment Score of Tesco Clubcard Mobile App

 Negative: 7370
 Neutral: 6650
 Positive: 38420
 Total: 52440 Responses

Weighted sum: Score: Calculating the weighted sum:

(0×7370) + (0.5×6650) + (1×38420) = 41745

Calculating the final percentage:

(Actual weighted sum ÷ Maximum possible score) × 100
(41745/52440) × 100
= 79.6%
2.5 LULU HAPPINESS

The Lulu Happiness mobile app is a loyalty platform by the Lulu Group, designed to reward and
engage shoppers. It offers users the ability to earn and redeem Smiles Points and Cheer Points across
Lulu outlets and partner brands. With a user-friendly interface, the app provides exclusive offers,
personalized discounts, and easy access to rewards, enhancing the overall shopping experience for its
loyalty members. It aims to deliver a seamless, personalized experience tailored to customer
preferences.

App Design

 The app design is minimalistic and user-friendly.

 User-friendly dashboard displaying essential loyalty information such as points balance,
membership level, and current offers.
 The layout is divided into clear sections such as "Home," "Offers," "Rewards," and "Profile,"
 The color scheme uses a combination of blue, white, and light pastel tones, which are visually
appealing and make the text and icons easy to read.
 Key actions such as checking points or viewing exclusive offers are prominently displayed in
larger fonts and icons, making them easier to access.
 Multiple categories of offers are visible, including “Exclusive Offers,” “Dine-in Discounts,”
and other promotions across food outlets and retailers.
Features

 Offers are neatly categorized under tabs such as "Exclusive Offers" and "Dine-in Discounts."
 A separate section for "Rewards" highlights items available for redemption using accumulated
points.
 The profile tab includes detailed information such as points, membership status, claimed offers,
and personal details, enabling users to manage their account easily.
 The app integrates a barcode in the user’s profile for in-store scanning.
 Clear “Submit the Bill” button to claim cheer points.

Personalization

 The app uses geolocation to provide users with region-specific offers, enhancing relevance and
convenience.
 Users can claim and redeem their smile and cheer points they are eligible for.
 There’s no other personalisation features available as of now.

User Experience

 The profile section provides details specific to the user, including account information, points
balance, and rewards claimed. The personalized greeting "Welcome, *name*” indicates that
the app tailors the experience based on user data.
 It is easy to access the essential sections of the app ensuring users can find what they need with
minimal effort.
 The app’s pleasant color palette and visually appealing graphics create a comfortable and
engaging environment.
 Few of the negative reviews include:
 Problems with OTP verification.
 Users unable to redeem points.
 Unable to submit bill for cheers points.
 Cheer points not updatig after uploading bill.

User ratings and reviews

Ratings Count
1 578
2 82
3 30
4 154
5 541

Lulu Happiness App Rating

(Jan 2024 - June 2024)
800

600

400

200

0
0 1 2 3 4 5 6
Sentiment analysis based on the reviews

Sentiment Timeline Sentiment Breakdown

300
250 positive
200
150 negative
neutral
100 neutral
50 positive
0 negative

0 200 400 600 800

Overall Sentiment Score of Lulu Happiness Mobile App

 Negative: 260
 Neutral: 400
 Positive: 700
 Total: 1360 Responses

Weighted sum: Score: Calculating the weighted sum:

(0×260) + (0.5×400) + (1×700) = 900

Calculating the final percentage:

(Actual weighted sum ÷ Maximum possible score) × 100
(900/1360) × 100
= 66.2%
 COMPARATIVE ANALYSIS OF THE MOBILE APPS

Lulu Pantaloons Tesco

Aspect Blue Rewards Target Circle
Happiness GreenCard Clubcard
App Design
Visual Theme Minimalistic, Fashion- Premium, navy Dynamic Clean, blue &
blue & white forward, green blue & white seasonal themes white
& white
Layout Structure Basic sections Multiple Modern, clean Comprehensive Well-
(Home, Offers, sections and layout categorization structured,
Rewards, carousels, clear intuitive
Profile) navigation
Brand Consistency Moderate High High Very High Very High
Features
Core Functionality Basic loyalty Multi-purpose Exclusive Comprehensive Comprehensive
features (shopping + loyalty platform retail + loyalty retail + loyalty
loyalty)
Points System Smile Points, GreenCard Cross-brand Target Circle Clubcard points
Cheer Points points points rewards
Scanning Integration Basic barcode camera Basic barcode Advanced Advanced
scanning barcode and barcode and
camera camera
scanning scanning
Purpose of Scanning for point for product for cashbacks for viewing for viewing
Integration redemption barcode offers, check offers, check
availability, availability,
point point
redemption etc redemption etc
Online Shopping No Yes No Yes Yes
Integration
Personalization
Location-Based Basic Store-specific Advanced Advanced Advanced
geolocation promotions regional store-specific store-specific
User Preference Limited Basic level Strong cross- Highly Highly
brand personalized personalized
Customization Minimal Limited Advanced Extensive Extensive
Options
User Experience
Navigation Simple Easy Intuitive Highly intuitive Highly intuitive
Performance Mixed reviews Occasional lags Minimal lags Some technical Fast and
issues responsive
Feature Accessibility Basic Good Very Good Excellent Excellent
User Sentiment
Sentiment Score 66.2% 72.4% 48% 52.3% 79.6%
Primary Issues OTP Product Login process Login issues Minor
verification quality technical
Authentication Crashes issues
 Point Returns Coupon issues Customer
redemption service
Customer Frequent pop-
Bill submission service ups

The comparative analysis reveals that Lulu Happiness, while functional, has significant room
for improvement compared to its competitors. The app's sentiment score of 66.2% positions it
in the middle range, above Blue Rewards and Target Circle but below Tesco Clubcard and
Pantaloons GreenCard. To remain competitive, Lulu Happiness should focus on:

1. Technical stability improvements

2. Feature expansion and sophistication
3. Enhanced personalization capabilities
4. Shopping integration development
5. Advanced loyalty program features

By implementing these recommendations, Lulu Happiness can strengthen its market position
and improve user satisfaction,

SWOT analysis of Lulu Happiness Mobile App

Strengths Weaknesses

Simple, user-friendly interface Limited personalization options

Dual points system (Smiles & Cheer Points) Basic feature set compared to competitors

Offer categorization Technical issues with core functions

Basic but functional loyalty features Limited shopping integration

Opportunities Threats

Market gap for enhanced personalization Rising user expectations

Cross-brand partnership potential Technical advancement of competitors

Digital shopping integration Changing consumer preferences

3. SOCIAL MEDIA ANALYSIS
Objective: To assess how each competitor uses social media platforms to engage customers, promote
their loyalty programs, and build brand presence.
Methodology: Public social media platforms were used to assess each competitor's engagement
strategies, loyalty program promotions, and brand presence.
3.1 PANTALOONS

Channels: Instagram, Facebook, Twitter, Youtube

Visual Aspect
 Instagram and Facebook pages showcases a vibrant and engaging fashion presence.
 Both platforms has the similar content just the layout is different.
 Bright, eye-catching imagery with a clean layout and emphasis on fashion and lifestyle.

Content Analysis
 Content Type:
o Seasonal Collection Launches
o Discounts and Sales
o Product Features
o Fashion Tips & Styling
o Influencer Collaborations
o User-Generated Content (UGC)
o Contests & Giveaways
o Meme content

 Total posts from January 2024 – June 2024

Channel No. of posts

Instagram 193
Facebook 156
Youtube 11
Twitter 2

 Pantaloons’ Instagram engages audience with all the above mentioned contents from product
promotions to UGC but Facebook has no UGC or meme content and focuses just on the main
promotions and sales updates thus the difference in numbers. Youtube on the other hand is
inactive.
Instagram:

Facebook:

 They use high-quality images and videos to highlight their latest collections, seasonal trends,
and exclusive deals.
 The page actively engages with its audience through interactive posts, such as polls, questions,
and calls to action.
 They also frequently update their stories with behind-the-scenes content, styling tips, and
customer interactions.
 They actively collaborate with influencers to educate their users on various products and
promotions.
 Seasonal Lookbooks, Style Challenges, Styling Tutorials contents by social media influencers.
 Promotional posts are common. They feature exclusive offers, discounts, and new arrivals.
They often include attractive graphics.
 There’s a varied content strategy that promotes products and fosters a sense of community and
engagement among followers, aligning with Pantaloons' goal of making shopping a joyful
experience.
 Pantaloons do not have social media pages exclusively for their loyalty program, thus the posts
and advertisements regarding their loyalty program is minimal. “Subkuch On Sale- SOS”,
“Early Access Sale” etc are the only post mentioning greencard on their social media platforms.
 They use their platform for regular updates of all varieties of content and is not restricted to
updates of just the Greencard.
 They post 4-5 times a week with reels being the majority.
 Hastags: #Pantaloons, #PantaoonsFashion and #PlayWithFashion are their frequently used
hashtags.
 Pantaloons Social Media Content Distribution
(Jan-June 2024)
40

30

20

10

0
Jan Feb Mar Apr May June

Reels Statics

Youtube: With 78000 subscribers the Pantaloons’ YouTube is mostly inactive with only 11 videos in
the span of 6 months. It has a total likes of 4500 and 54000 views across various content like seasonal
collection promotion, styling tips, campaigns etc.
Twitter: Sharing content in this platform is close to none. But they utilize it to reply to their customers’
queries, complaints and questions more than other platforms.
User Engagement:

Instagram
 Followers: 568k
 Average range of likes per Post: 150 -300
 Average comments per Post: 6
 Average views per reel: 4200
Facebook

 Followers: 2.3m
 Average range of likes per Post: 80 - 100
 Average comments per post: 4
 Average views per video: 2500
Despite having significantly fewer followers on Instagram (568K) compared to Facebook (2.3M),
Instagram, demonstrates stronger engagement metrics across all parameters. Twitter serves primarily
as a customer service channel rather than a content platform, with minimal content sharing but an active
response to customer queries and complaints. This engagement pattern suggests that Instagram is
Pantaloons' most effective platform for audience interaction and content visibility, despite having a
smaller follower base than Facebook. The higher engagement rates on Instagram align well with the
platform's visual-first nature and the brand's fashion-focused content strategy.

3.2 BLUE REWARDS

Channels: Instagram, Facebook

Visual Aspect
 The social media pages solely for their loyalty program, features visually pleasing aesthetics
with a consistent color palette – a blend of bold blues, complemented by pops of vibrant hues,
and branding elements that align with Blue Rewards' identity.
  Posts are primarily high-quality images and videos showcasing their products, campaigns, and
collaborations.
 Their posts often feature quirky characters, playful patterns, and engaging animations of their
mascots- Modesh & Dana.
Content Analysis
 Content type:
o Brand collaborations
o Multi-brand offers and perks
o Blue reward event updates
o How-to guides of using the app
o Other educational content to familiarize its users
o New app updates
o Game updates and how-to’s
o Influencer Collaborations
o User-Generated Content (UGC)
o Contests & Giveaways
o Behind-the-scenes and sneak peaks
o Various campaigns and updates

 Total posts from January 2024 – June 2024

Channel No. of posts

Instagram 147
Facebook 139

Instagram

Facebook
  Blue Rewards effectively utilizes Instagram stories to provide behind-the-scenes glimpses,
sneak peeks, and exclusive content, fostering a sense of exclusivity and community among their
audience.
 On Facebook, they share more in-depth updates, product information, and engage with their
community through interactive posts and live sessions.
 Consistent posting activity on their social media engage their users and keep them updated.
 They excel at creating content that not only showcases their products but also aligns with
broader lifestyle trends and interests
 Blue Rewards actively encourages user-generated content by promoting hashtags and running
campaigns
 Blue Rewards has a strong and consistent presence across multiple social media platforms,
leveraging each platform's unique features and audience to create an engaging and cohesive
brand experience.
 Blue Rewards' content also communicates their brand values and mission, highlighting the
importance of community, inclusivity, and rewarding experiences.
 They actively respond to customer inquiries and feedback across various social media platforms
 They regularly launch initiatives that invite users to share their experiences, creativity, and
passion for the brand by posting photos or videos with specific hashtags (UGC)
 Highlights several key campaigns, "Back to School", “BlueSummer”, “FitnesswithBlue” etc
 Collaborations with major brands such as Marks and Spencer, IKEA, and Toys R Us, EmCan
and the mymodesh mascot.
 Most used hastags include: #BlueRewards, #RewardsForYou, #BlueApp

Blue Rewards Social Media Content Distribution

(Jan-June 2024)
45
40
35
30
25
20
15
10
5
0
Jan Feb Mar Apr May June

Reels Statics

User Engagement

Instagram
 Followers: 20.5k
 Average likes per post: 120 -200
 Average comments per post: 18
 Average views per reel: 2200
Facebook

 Followers: 32k
 Average range of likes per Post: 80 - 100
 Average Comments per Post: 7
 Average Views per Video: 1300
Engagement metrics, including likes, comments, shares, and views, show significant variation across
different posts. Reels generally achieve higher views, though the results for likes and shares are mixed.
Posts tied to specific promotions, such as contests or double points, tend to generate higher engagement,
indicating that the audience responds well to reward-based content.

3.3 TARGET CIRCLE

Channels- Instagram, Facebook, Twitter, YouTube

Target maintains a strong social media presence with significant followings. Each platform serves
different purposes while maintaining a cohesive brand identity.
Visual Aspect

 Target keeps a highly consistent visual branding across its social media platforms, utilizing its
iconic red and white color scheme. The imagery, clear branding elements, and language create
a cohesive brand identity across these platforms.
 Posts often feature vibrant visuals, customer-centric product showcases, and seasonal or
holiday-themed content.
 Their posts are visually appealing and consistent in tone and style.

Content Analysis
 Content types:
o Product Highlights
o Seasonal Promotions
o Lifestyle and Inspirational Posts
o Target Circle Week
o “Target Finds”
o Influencer Collaborations
o Behind-the-Scenes Content
O Polls, Q&A sessions, and interactive stories and posts
o Community support
o User-Generated Content

 Total posts from January 2024 – June 2024

Channel No. of posts

Instagram 223
Facebook 231
YouTube 47
Twitter -
Instagram:

Facebook:

YouTube:
  Target uses high-quality images, videos, and reels to promote new products, seasonal
collections, and lifestyle imagery that resonates with younger audiences on Instagram.
 Facebook posts tend to be more community-oriented, engaging its customers through
promotions, store events, and discussions that encourage comments and shares, appealing to a
broader demographic range.
 They frequently showcase their latest merchandise, from fashion to home decor, groceries, and
electronics. These posts are often styled creatively to inspire customers.
 Seasonal promotions and offers like back-to-school, Halloween, Christmas, and other events.
 They share content from customers who showcase how they use Target products in their daily
lives. This includes home decor setups, fashion looks, and creative uses of their products.
 Influencer partnerships are frequently highlighted to enhance brand engagement where these
influencers often post about their experiences with Target products.
 Target posts content that aligns with various lifestyles, providing inspiration for home decor,
fashion, and wellness.
 They occasionally share behind-the-scenes looks at their stores, product development, and team
members to give followers a glimpse of the inner workings of the company.
 Polls, Q&A sessions, and interactive stories that engage followers and encourage participation.
 Target showcases their commitment to social causes, sustainability, and community support
like collection centres, donations etc.
 They stay on top of social media trends and adapt their content to reflect current popular culture,
making their brand relevant and engaging for their audience.
 Popular hashtags: #TargetStyle, #TargetFinds, #TargetCircle

Target Social Media Content Distribution

(Jan-June 2024)
45
40
35
30
25
20
15
10
5
0
Jan Feb Mar Apr May June

Reels Statics

Target utilizes its twitter platform called “AskTarget” exclusively as a helpline for their customers
needing help, assistance, filing complaints, asking questions about the products etc. Twitter serves
primarily as a customer service channel rather than a content platform.
User Engagement
Instagram
 Followers: 6M
 Average likes per post: 10k -15k
 Average comments per Post: 600
 Average views per reel: 100k-200k
Facebook
  Followers: 22M
 Average likes per post: 250- 450
 Average comments per Post: 50
 Average views per Video: 250k – 500k
YouTube
 Subscribers: 6.51 L
 Average likes per post: 80- 100
 Average comments per Post: 20
 Average views per Video: 600-1200
Target's social media engagement varies across platforms, each tailored to different audience segments
and content strengths. On Instagram, with an engagement average of 3.7%, Target excels through
visually compelling lifestyle imagery, product showcases, and influencer collaborations, resonating
especially well with younger demographics through frequent likes, comments, and shares. Facebook’s
engagement, at approximately 2.3%, is slightly lower but reaches a broader and more diverse age range,
using comments and shares to foster community and promote events. Meanwhile, YouTube serves as a
space for more detailed content like product demos, ads, and brand storytelling, yielding lower
engagement rates yet achieving longer watch times and deeper brand connection, critical for
maintaining brand loyalty in the retail sector.
3.4 TESCO CLUBCARD
Channels: Instagram, YouTube
Tesco's social media strategy is centered around customer engagement, strategic partnerships, and
varied content tailored to its followers’ interests.
Visual Aspect

 Tesco’s social media pages have visual approach that aligns with the Tesco brand identity—
bold, simple, and practical.
 Posts often feature clean visuals with prominent red and blue accents, reflecting Tesco’s
signature colors.
 Content on Instagram and YouTube often includes high-quality images and easy-to-read
graphics, aiming for visual appeal while maintaining clarity for quick comprehension.
Content Analysis

 Content type:
o Food-Centric Posts
o Clubcard deals and promotions
o Product Highlights
o Recipe and Meal Ideas
o Interactive Posts
o Seasonal Campaigns
o Influencer Collaboration Content
o Popular Chef collaborations
o Tesco Tips
o Charity and Community Initiatives

 Total posts from January 2024 – June 2024

 Channel No. of posts
Instagram 224
YouTube 47

Instagram:

YouTube:
  Family-focused content highlighting recipes, meal ideas, grocery deals and discounts, and in-
store promotions.
 Emphasis on community and Tesco Clubcard perks.
 Posts emphasizing the exclusive discounts and in-store savings available only to Clubcard
holders.
 Tesco engages followers through polls and feedback requests on Instagram Stories, particularly
around recipes or meal-prep tips.
 Tesco also advertises special discounts through posts that encourage viewers to visit in-store or
online
 User-generated content featuring meals prepared with Tesco ingredients, fostering a
community feel.
 Occasional contests around special events or product launches, incentivizing engagement with
Clubcard rewards or grocery vouchers
 Tesco collaborates with chefs, food bloggers, and sustainable lifestyle influencers to promote
Clubcard offers.
 Tesco selectively collaborates with food bloggers and influencers during seasonal campaigns
to amplify reach and increase engagement.
 Easy-to-read posts explaining how to earn or redeem points.
 Fun-filled content by Tesco employees on various offers, Tesco tips, season promotions etc.
 Popular hashtags: #Tesco, #TescoMealDeal, #TescoandJamie

Tesco Social Media Content Distribution

(Jan-June 2024)
30

25

20

15

10

0
Jan Feb Mar Apr May June

Reels Statics

 Unlike other loyalty programs, Tesco efficiently utilizes both reels and static posts on their
social medias as shown in the chart above.
User Engagement
Instagram
 Followers: 574k
 Average likes per post: 250-500
 Average comments per Post: 35
 Average views per reel: 250k – 500k
YouTube
 Subscribers: 1.74 L
 Average likes per post: 80- 100
 Average comments per Post: 20
 Average views per Video: 2000-8000
3.5 LULU HAPPINESS

Channels: Instagram, Facebook, YouTube

Visual Aspect
 Lulu happiness social media pages predominantly uses a mix vibrant and warm colors- orange, blue
and yellow colours but there is no consistency in the colour palette used.
 Visual aesthetics is somewhat clustered with a mix of different colours and fonts causing traffic in
the first look.
 There is high contrast visuals that catch attention.
 The Lulu Happiness logo and brand colors appear frequently, maintaining brand recognition and
visual cohesion across posts.
 Many posts include text overlays that emphasize discounts, offers, and event information.
 There is a strategic mix of product images, promotional banners, and event announcements.
Content Analysis

 Content type:

o Promotional Content
o Discount announcements
o Contest/giveaway posts
o Product promotions
o Meet & Greet events
o Winner announcements of contests
o Location-specific promotions
o Customer testimonials
o Cultural celebrations
o Influencer collaborations
o Early access promotions for members
o Exclusive member benefits

 Total posts from January 2024 – June 2024

Channel No. of posts

Instagram 59
Facebook 17
YouTube 1
Instagram:

Facebook:

 Lulu Happiness’ Instagram and Facebook content are the same.

 Their social media pages were launched only in March, so they’re still relatively new.
 It has a mix of retail, lifestyle, and entertainment offers, promotions and content.
 There are cross-promotion of different regions- Lulu Banglore, Lulu Lucknow, Lulu
Trivandrum, Lulu Mall Calicut etc
 Coverages of various event that happen within the mall in collaboration with Lulu Happiness
program.
 Posts include giveaways and various contests that helps to drive user engagement.
 Posts regularly highlight the benefits of being a Lulu Happiness member, including exclusive
access and double loyalty points.
 There are efforts to connect with the community through interactive posts like the Photography
Contest
 The page also promotes events such as Father's Day, football ticket giveaways, and Onam,
appealing to a diverse audience and reflecting the brand's inclusivity and cultural sensitivity.
 There are clear call-to-actions like “register now” and QR codes.
 Most posts include clear CTAs such as “Download the App”, “Register Now” or “Get Extra
Discounts,” prompting followers to engage immediately.
 The page utilizes video content to showcase events, mall scenes, and exclusive offers.
 Various collaborative posts with well-known influencers allows lulu happiness to have more
visibility and follower conversions.
 Popular hashtags: #LuluHappiness, #LuluHappinessRewards
 Lulu Happiness Social Media Content Distribution
(Jan-June 2024)
18
16
14
12
10
8
6
4
2
0
Jan Feb Mar Apr May June

Reels Statics

User Engagement
Instagram
 Followers: 3004
 Average likes per post: 60-120
 Average comments per Post: 5
 Average views per reel: 1000-5000
Facebook
 Followers: 55
 Average likes per post: 5
 Average comments per Post: 1
 Average views per Video: 60-100
Lulu Happiness’s Instagram page shows promising engagement for a new account, with moderately
strong follower numbers, good post interactions, and impressive reel views, showcasing effective
content strategies. In contrast, their Facebook presence is still limited, with lower follower and
engagement metrics, indicating potential for growth on this platform. Overall, Instagram currently
serves as their main channel for customer engagement and loyalty-building.

Lulu Happiness has a unique opportunity to leverage its multicultural presence and regional diversity
to create a distinctive social media presence. While currently behind competitors in terms of follower
count and content consistency, the program shows promising engagement rates that can be built upon
through strategic implementation of the recommended actions. Focus should be placed on developing
a consistent visual identity, increasing content frequency, and building strong community engagement
through user-generated content and interactive features.

The success of competitors like Target Circle and Blue Rewards demonstrates the importance of
maintaining consistent branding while creating engaging, diverse content that resonates with the target
audience. By implementing these recommendations, Lulu Happiness can strengthen its position in the
loyalty program market while building a unique identity that leverages its multicultural and multi-
regional presence.
 COMPARATIVE ANALYSIS OF THE SOCIAL MEDIA PLATFORMS

Platform Lulu Pantaloons Blue Target Circle Tesco

Presence Happiness Greencard Rewards Clubcard
Instagram ✔ ✔ ✔ ✔ ✔
Facebook ✔ ✔ ✔ ✔ ✗
Twitter ✗ ✔ ✗ ✔ ✗
YouTube ✔ ✔ ✗ ✔ ✔
Table 1: Social Media platform checklist

Lulu Tesco
Metric Pantaloons Blue Rewards Target Circle
Happiness Clubcard
Content Limited reels, Balanced mix, High volume, Even
Balanced mix
Distribution mostly static reels-focused mixed format distribution
Inconsistent Strong, Consistent Highly Bold,
Visual
color palette, vibrant, with brand consistent practical,
Consistency
cluttered consistent colors (red/white) consistent
Seasonal
Exclusive Collections Product
Brand Food-centric
Promotions highlights
collaborations
Sales &
Clubcard deals
Contests & promos Seasonal
Multi-brand
giveaways promos
offers Seasonal
Fashion &
campaigns
Content Regional styling tips Lifestyle
How-to guides
Types events content
Recipe & meal
Contests &
Event updates ideas
Winner giveaways Community
announcement support
Game updates Chef/
UGC
influencer
Influencer Target circle
UGC collaborations
collaborations Meme week
marketing
More than 6 More than 6
1-2 times per 4-5 times per 5 times per
per week per week
Content week week week
Frequency
High High
Inconsistent Inconsistent Regular
frequency frequency
Table 2: Comprehensive comparison table
Inference: The comparative analysis highlights notable differences in social media strategies across
the five loyalty programs. Target Circle and Tesco Clubcard lead with mature, high-frequency posting
(6+ times weekly) and consistent branding. Blue Rewards offers balanced, diverse content with strong
brand alignment. Pantaloons shows potential with varied content but lacks posting consistency. Lulu
Happiness, as the newest entrant, lags with limited content and irregular posting (1-2 times weekly);
while it provides unique regional content and contests, it needs more visual consistency and a
structured strategy to compete effectively.
 Target Tesco Blue Lulu
Category / Metric Pantaloons
Circle Clubcard Rewards Happiness
Social Presence & Reach
Platform Coverage
4 2 2 4 3
Number of active social platforms
Total Following
Combined followers across platforms 28.5 0.75 0.053 2.95 0.003
(in M)
Content Strategy
Posting Frequency
5 5 4 3 2
Weekly post frequency score
Content Diversity
5 4 4 4 3
Variety of content types
Visual Consistency
5 4 4 4 2
Brand adherence & aesthetics
Engagement
Engagement Rate
5 4 3 3 2
Avg. interactions per post
Loyalty Program Integration
Program Visibility
Loyalty program prominence in 4 5 5 2 5
content
Exclusive Content
Member-specific content & offers 4 4 5 2 4

Table 3: Social Media Performance Ranking

Inference: The social media performance comparison reveals that Lulu Happiness shows mixed results.
While it maintains decent program visibility and exclusive content (scoring 5 and 4 respectively), it
significantly lags in engagement metrics. Target Circle leads overall with strong performance across all
categories (high scores in frequency, diversity, and engagement), while Lulu shows particular weakness
in total following (only 0.003M followers) and lower scores in posting frequency (2), content diversity
(3), and engagement rate (2). Despite having moderate platform coverage (3 platforms), Lulu's visual
consistency (2) and overall social media effectiveness needs significant improvement to match
competitors' standards.
 CHAPTER 5
SURVEY ANALYSIS AND INTERPRETATION
5.1 General Information
5.1.1 Demographic Analysis: Age

The survey reveals a predominantly young user base for loyalty programs, with 51.6% falling in the 18-
25 age bracket and 48.4% in the 26-35 range. Notably absent are users above 35 years old, indicating a
strong appeal to younger demographics.
5.1.2 Demographic Analysis: Gender

The gender distribution shows a significant female majority at 61.3%, with male users comprising
38.7% of respondents. This clear gender skew suggests an opportunity for targeted marketing strategies
and potential growth in male user engagement.

The demographic data points to a young, female-centric market that could be expanded to include
broader age groups and achieve better gender balance.
5.1.3 Usage Behavior Analysis

The pie chart indicates a healthy adoption rate of loyalty apps, with the majority (64.5%) using them
occasionally, defined as 1-3 times per month. A smaller but significant portion (16.1%) are frequent
users who engage weekly or more often, while another 16.1% use the apps less than monthly. The
minimal percentage of non-users suggests strong market penetration of loyalty programs.
The high percentage of occasional users presents a clear opportunity for programs to increase
engagement frequency through targeted initiatives and enhanced value propositions.

5.2 Loyalty App Usage

5.2.1 Customer Satisfaction Analysis

This bar graph reveals a moderate level of satisfaction with current loyalty apps, with 50% of
respondents indicating a neutral satisfaction level (3 out of 5). Notably, 43.3% of respondents showed
above-average satisfaction (ratings of 4 or 5), while only 6.7% expressed low satisfaction (rating of 2).
The absence of extremely dissatisfied customers (rating of 1) suggests that existing loyalty programs
generally meet basic expectations, but there's significant room for improvement to convert the neutral
majority into highly satisfied users.
This presents an opportunity for Lulu Happiness to differentiate itself by addressing the factors that
currently prevent customers from being highly satisfied.
5.2.2 Feature Priority Analysis

When ranking loyalty app features, respondents chose personalized offers and points accumulation as
the most valued features, consistently receiving high rankings (1-2). The interface and exclusive
rewards received moderate priority rankings, while easy redemption and gamification were consistently
ranked lower. Notably, gamification was overwhelmingly ranked as the least useful feature (rank 6),
suggesting that resources should be directed toward core functional features rather than gaming
elements.
This insight is particularly valuable for Lulu Happiness to prioritize development efforts and allocate
resources effectively, focusing on strengthening personalization capabilities and streamlining points
systems.
Ranking Using Cumulative Weighted Rank Score

Features Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 CWRS Rank

Personalized Offers 7 10 9 1 3 1 138 1
App Interface 5 10 8 5 2 1 132 2
Exclusive Rewards 4 4 9 11 2 1 118 3
Points
10 3 2 7 5 4 118 3
Accumulation
Easy Redemption 1 3 5 5 15 4 90 4
Gamification 4 1 0 2 4 20 59 5

Feature Priority Ranking

6

5 Points Accumulation
4 Personalized Offers

3 App Interface
Exclusive Rewards
2
Easy Redemption
1
Gamification
0
Rank
5.2.3 Indian Loyalty Program Analysis

Survey results highlight Starbucks Rewards leads with 51.6% usage, followed by Pantaloons
GreenCard at 38.7%. Reliance One sees moderate usage at 25.8%, while Nesto Inaam and
Landmark Rewards trail at 12.9% and 6.5%, respectively.

This trend indicates that international and well-established national brands tend to have more
successful loyalty programs, likely due to higher brand recognition and appealing reward
structures.

5.2.4 International Loyalty Program Analysis

The data shows a notable awareness gap in international loyalty programs, with 58.1% unaware of any
listed options. Target Circle leads in awareness at 25.8%, followed by Tesco Clubcard at 12.9% and
Blue Rewards at 9.7%, highlighting low recognition even for major brands.

This indicates a chance for Lulu Happiness to differentiate by adopting best practices from
international programs while staying locally relevant.
5.2.5 Rewards Value Analysis

The survey indicates a clear hierarchy in reward preferences. Discount vouchers and free
products/services emerged as the most valued rewards (highest number of rank 1 responses), followed
by cashback. Exclusive experiences received mixed rankings, while partner rewards were consistently
ranked lower. This suggests that customers prefer immediate, tangible benefits over experiential
rewards.
For Lulu Happiness, this indicates the importance of maintaining a strong discount and free product
offering while potentially reconsidering the resource allocation to partner reward programs unless they
can be significantly differentiated.
Ranking Using Cumulative Weighted Rank Score

Rewards Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 CWRS Rank

Discount Vouchers 14 6 4 3 4 116 1
Cashbacks 6 12 2 6 5 101 2
Free Products/Services 3 6 16 3 3 96 3
Exclusive Experiences 4 2 8 15 2 84 4
Partner Rewards 4 5 1 4 17 31 5

Rewards Value Analysis

6

0
Rank

discount vouchers cashbacks free products/services

exclusive experiences partner rewards
5.2.6 Purchase Behaviour Analysis

The data shows strong engagement with loyalty programs during the purchase process, with 90.3% of
respondents checking for loyalty program deals at least occasionally (38.7% always, 51.6% sometimes).
Only 9.7% rarely check for deals, and notably, no respondents selected "never." This high engagement
rate suggests that loyalty programs significantly influence purchase decisions, making them a crucial
tool for driving sales.

For Lulu Happiness, this underscores the importance of making loyalty program benefits highly visible
and easily accessible at all purchase touch points.

5.3 Intention of Use

5.3.1 Program Usage Analysis

The primary motivations for loyalty program participation are clearly focused on financial benefits,
with both earning points for future discounts and receiving personalized offers tied at 74.2% of
respondents. Exclusive member-only deals (61.3%) and early access to sales (54.8%) form a second
tier of important features. The relatively low interest in gamified experiences (25.8%) reinforces earlier
findings about feature priorities.

This suggests that Lulu Happiness should focus on developing a strong value proposition around
monetary savings and exclusive access, while maintaining gamification as a secondary feature for
specific customer segments who find it engaging.
5.3.2 Continued Usage Factors

The survey indicates that ease of app use (77.4%), consistent rewards (74.2%), and personalized offers
(54.8%) are the top three factors driving continued loyalty app usage. Customer service quality follows
at 48.4%, while app reliability (25.8%) and points expiry (12.9%) are less critical factors.

This suggests that Lulu Happiness should prioritize user interface optimization, maintain a steady and
reliable rewards structure, and invest in personalization algorithms. The relatively low concern about
points expiry could be leveraged as a competitive advantage by offering more flexible expiration
policies.

5.3.3 Category Usage Analysis

The survey reveals that Fashion dominates loyalty rewards usage at 38.7%, followed by equal shares
(25.8% each) for both Groceries and Dining. Electronics and Entertainment make up smaller segments.
This distribution suggests that Lulu Happiness program should focus heavily on fashion-related
rewards while maintaining strong offerings in groceries and dining, as these three categories
collectively account for over 90% of loyalty program usage. The high fashion usage indicates potential
for expanding fashion-related partnerships and specialized rewards in this category.
5.4 Comparison of Loyalty Program
5.4.1 Appeal Factors

Personalized offers lead the appeal factors at 77.4%, followed by rewards system (67.7%) and ease of
use (64.5%). Customer support ranks fourth at 54.8%. Lower-ranking factors include user engagement
(29%), program flexibility (25.8%), and expiry policies (16.1%).
This data suggests that Lulu Happiness should focus on developing sophisticated personalization
algorithms, maintaining an attractive reward structure, and ensuring intuitive user interface design.
The relatively low importance of expiry policies and program flexibility indicates these areas could be
simplified without significantly impacting user satisfaction.

5.4.2 Regional Customization Importance

The data shows a strong preference for regional customization, with 93.5% of respondents rating it 3 or
higher on a 5-point scale (35.5% each for ratings 3 and 4, and 22.6% for rating 5). Only 6.5% gave a
low importance rating of 2, and notably, no respondents rated it as 1.

This clearly indicates that Lulu Happiness needs to prioritize regional customization in their loyalty
program, potentially offering region-specific rewards, deals, and experiences that cater to local
preferences and shopping habits.
5.4.3 Competitive Position

The comparison data shows that only 18.8% of respondents find Lulu Happiness better than other apps,
while 37.5% see no significant difference, and a concerning 43.8% believe it needs more improvements.

This indicates a clear need for enhancement in the program for Lulu Happiness.

Given the other survey insights, these improvements should focus on personalization, user interface,
and rewards structure to differentiate Lulu Happiness from competitors. The high percentage requesting
improvements suggests an opportunity to implement significant changes that could help Lulu Happiness
stand out in the competitive loyalty program market.

5.5 Respondent Feedbacks

5.5.1 Suggested Improvements

The survey reveals a comprehensive list of desired improvements for the Lulu Happiness loyalty app,
with personalization leading the priorities. More personalized offers tops the list at 64.5%, followed by
more reward options (58.1%) and better app interface (51.6%). There's also significant interest in more
frequent promotions (48.4%) and gamification features (41.9%).

These findings suggest that Lulu Happiness should prioritize implementing personalization features,
expanding reward options, and improving the app interface while gradually introducing gamification
elements and enhanced regional customization.
5.5.2 Loyalty App Recommendation Analysis

Survey results show a mixed but positive reception for the loyalty app, with 41.9% willing to
recommend it, 48.4% uncertain, and only 9.7% unwilling to recommend it. This suggests room for
improvement in user satisfaction but no fundamental flaws.

Lulu can focus on targeted improvements rather than a complete overhaul to boost recommendation
rates.

5.5.3 Do you have any further recommendations, suggestions, or preferences you would like the
Lulu Happiness loyalty program/app to have?

A word cloud analysis of customer recommendations for the Lulu Happiness loyalty program highlights
key priorities: "moreupdates," "personalization," "discounts," and "brandoffers," reflecting customer
desires for improved updates, personalized experiences, and valuable brand deals. The presence of
terms like "regional," "interface," and "userfriendly" suggests a demand for a user-friendly, regionally
relevant program.

To meet these needs, Lulu Happiness should enhance its digital interface, add personalization, expand
brand partnerships, and offer region-specific promotions with extended validity.
6.1 FINDINGS

6.1.1 Loyalty Program Analysis

 Lulu Happiness uses a simple two-tiered system (Joy and Bliss) with a points-based reward
structure that provides basic benefits, like early sale access and birthday surprises. In
comparison, competitors such as Pantaloons Greencard and Al-Futtaim Blue Rewards have
multi-tiered structures offering progressively higher rewards, early access to events, and VIP
benefits that drive loyalty.

 Lulu Happiness rewards points for transactions, but lacks diverse earning methods. Competitors
offer multiple point-earning options, like referral bonuses, app engagement rewards, and
gamified tasks. For instance, Al-Futtaim Blue Rewards allows users to earn points by
completing profile tasks and playing games.

 Lulu Happiness offers point redemption on selected in-store and partner brands. However,
competitors like Tesco Clubcard offer extensive partnerships and allow members to use points
at multiple brands, increasing flexibility.

 Lulu Happiness provides standard benefits, whereas competitors employ personalized reward
strategies and advanced loyalty benefits. Tesco’s data-driven personalized offers and Target’s
loyalty-based charitable donations foster stronger customer loyalty.

6.1.2 Mobile App Analysis

 The Lulu Happiness app provides essential functions but lacks the advanced features found in
competitor apps. Target Circle and Blue Rewards apps offer intuitive navigation, clear reward
tracking, and smooth integration with loyalty benefits.

 Lulu Happiness has a basic points tracking and redemption feature, but other competitors offer
digital wallets, in-app payment options, and reward notifications. Tesco Clubcard, for instance,
includes a digital card for easy access and in-store use.

 Lulu Happiness lacks gamified elements to increase user interaction. Competitors like Al-
Futtaim’s Blue Rewards use interactive games and challenges to incentivize app engagement,
keeping users engaged.

 Lulu Happiness enables point redemption but can be less streamlined than competitors’ apps
that allow for in-app redemption or even automatic point application at checkout, improving
user convenience.

6.1.3 Social Media Analysis

 Lulu Happiness’ social media strategy focuses primarily on promotional content. In contrast,
competitors like Target Circle use interactive content (polls, quizzes) and user-generated
content to engage users more actively.

 Competitors like Tesco and Target collaborate with influencers to increase brand visibility and
foster community connections. Lulu’s program lacks this depth in community-driven
engagement.

 Lulu Happiness lacks a cohesive strategy in brand tone across platforms, while competitors
maintain a consistent tone, fostering a stronger brand identity.
  Competitors actively respond to customer queries and complaints on social media, often
incorporating real-time support. Lulu Happiness could improve its social media responsiveness
to increase customer satisfaction.

6.1.4 Online Survey Insights

 Survey responses indicate moderate satisfaction with Lulu Happiness’ point accumulation and
redemption system, but respondents desire more unique offers and a streamlined app
experience.

 Customers expressed a strong preference for more personalized rewards and special bonuses.
This demand aligns with competitor practices in markets like the UAE and the USA, where
users receive tailored offers.

 Respondents showed interest in gamified features, such as challenges or milestone-based

rewards, which many competitors already offer.

 Users suggested additional tiers or levels in the loyalty program and more flexibility in
redemption options. They also want more options for redeeming points outside Lulu stores,
echoing the competitive advantage that multi-brand partnerships offer.
6.2 SUGGESTIONS

6.2.1 Loyalty Program Analysis

 Introduce more membership tiers with differentiated benefits, such as more exclusive discounts,
early access to new product launches, or double points on specific days, to reward higher
spending levels.

 Add gamification features—such as quizzes, challenges, and achievements—that allow

members to earn bonus points. Referral programs would also drive user acquisition and
engagement.

 Collaborate with more third-party brands to expand reward redemption options, mirroring the
multi-brand approach used by Blue Rewards. Offering partnerships across sectors like dining,
wellness, and fashion can make the program more attractive.

 Leverage customer data to create targeted promotions and exclusive offers. Personalized
discounts based on shopping behavior, tier-based VIP events, and offers tailored to user
preferences would increase user satisfaction and retention.

6.2.2 Mobile App Analysis

 Improve the UI to make navigation more seamless and visually appealing, with clear, accessible
tracking for points and rewards. Enhance loading speeds and reduce the number of steps
required to access account details.

 Introduce features like a digital wallet, transaction history, and real-time notifications for
reward points, exclusive offers, and flash sales. Enhancing the app with a digital card, as in
Tesco’s app, can make in-store point use quicker and more accessible.

 Incorporate interactive features such as daily challenges, point streaks, or spin-to-win games.
Adding incentives for regular app usage or achievements could increase engagement and app
stickiness.

 Enable automatic reward application at checkout, making it easier for users to use their points
without manual steps. This can streamline the shopping experience and ensure customers feel
rewarded promptly.

6.2.3 Social Media Analysis

 Incorporate more customer-centered content, such as “how-to” posts on redeeming rewards,

polls, and loyalty stories. User-generated content, like customer shopping stories, can drive
engagement and add authenticity.

 Collaborate with influencers relevant to the retail industry or local communities to increase
brand reach and attract potential members. Social media collaborations can help build trust and
extend Lulu’s reach.
  Develop a dedicated customer support channel within social media for quick responses to user
inquiries about points, redemption, or app navigation. Quick response times could improve
customer satisfaction and engagement.

 Implement a cohesive brand voice and tone across all social platforms. A consistent brand
identity can create familiarity and strengthen customer loyalty by making interactions with Lulu
Happiness more engaging and memorable.

6.2.4 Online Survey Insights

 Offer exclusive discounts, member-only pricing, and personalized promotions based on

individual user profiles. Birthday discounts or anniversary bonuses could meet the demand for
special benefits and create a sense of personal connection.

 Add rewards for loyalty milestones, such as celebrating a user’s one-year membership with
bonus points or exclusive offers. Milestone rewards can encourage long-term engagement,
while game-based features add excitement to the user experience.

 Increase options for using loyalty points outside Lulu stores, partnering with relevant brands to
diversify redemption avenues. Similar to Al-Futtaim’s approach, these partnerships can
enhance value and drive interest in the program.

 Regularly incorporate survey feedback to refine features and adapt offerings to meet user
expectations. Routine engagement with members via surveys can help stay in tune with
customer needs and preferences, fostering loyalty and satisfaction over time.

Lulu Happiness Week: Dedicate one week every month exclusively for Lulu Happiness members,
offering deep discounts, special promotions, and double or triple points on all purchases. This “Lulu
Happiness Week” would encourage members to shop more during this time, creating a recurring event
that members look forward to.

Member-Exclusive Pricing: Introduce "Lulu Happiness Member Pricing" on select items across
categories, marked with a special label in-store and online. This would allow members to access
discounted prices year-round, making membership visibly beneficial and encouraging non-members to
join.

Happiness Spin and Win: Create a “Spin and Win” feature in the app where members can play once
a week or after certain purchases to win instant prizes like bonus points, small vouchers, or special
discounts. This fun, gamified experience would boost engagement and keep members checking the app
regularly.

Lulu Happiness Referral Rewards: Implement a referral program where members earn bonus points
or unique rewards for referring friends and family who join and start using Lulu Happiness. This could
significantly increase membership while rewarding loyal members for sharing the program.

Monthly Challenge and Bonus: Introduce a “Monthly Challenge” feature where members can
complete specific actions (like shopping a certain number of times, referring friends, or spending a set
amount) to unlock bonus points, rewards, or exclusive coupons. This challenge would drive activity
and encourage regular participation.
VIP Shopping Experiences for Top Tiers: Offer a VIP shopping experience for top-tier members,
such as personal shopping assistance, a private shopping hour, or invitations to exclusive in-store
events. This would make the highest tiers feel prestigious, incentivizing members to reach and maintain
top-tier status.

Seasonal Surprise Boxes: Send out exclusive “Happiness Boxes” with seasonal products or samples
to top members during festive periods or on their membership anniversary. These boxes could include
sample-sized items from new collections or small branded gifts, creating a delightful unboxing
experience.

Double Points Days on Special Occasions: Host double points days on special occasions, such as
major holidays or the Lulu anniversary, where members earn twice the points on purchases. This would
give members an extra incentive to shop on those days, increasing their points balance and overall
satisfaction with the program.

Limited-Time “Happy Hour” Discounts: Schedule “Happy Hours” where members receive discounts
on selected items if they shop during off-peak hours, such as weekday afternoons. For example, offer
15% off groceries from 2-5 pm on weekdays.

Lulu Happiness App Streak Bonus: Introduce an app streak bonus, where members who log in to the
app consecutively for a week get a one-time-use 10% discount on any purchase.
CONCLUSION

The study on the competitor analysis of the Lulu Happiness loyalty program highlights both strengths
and improvement areas where it could be further developed to boost effectiveness and to elevate its
loyalty program. While Lulu Happiness already stands out with key features like dual currency,
exclusive member pricing, and early access to sales, there are opportunities for growth to align more
closely with customer expectations and engagement levels observed in competitive programs from
regions like India, the UAE, the UK, and the USA.

One key opportunity is the introduction of a structured, multi-tier loyalty system, inspired by programs
like Pantaloons Greencard and Target Circle, which offer increasingly attractive rewards and unique
perks as customers reach higher spending levels. This tiered approach would likely improve customer
retention by recognizing and incentivizing higher spenders, creating a sense of progression and
exclusivity.

Additionally, enhancing interactivity and personalization could drive stronger engagement.

Competitors such as Blue Rewards and Tesco Clubcard use gamification and AI-driven customization
to provide tailored rewards, interactive challenges, and partnerships that cater to individual user
preferences. Adopting similar features, like personalized product recommendations or app-based
games, would make Lulu Happiness more engaging, fun, and effective at maintaining long-term user
interest.

Lulu Happiness’s app functionality is currently more basic than competitors’ more advanced digital
ecosystems. Adding features like in-app notifications for new offers, digital wallets, and partnerships
with multiple brands could elevate the app’s usability and appeal, encouraging frequent use and
simplifying the process of redeeming rewards. Strengthening digital features would also allow users
easier access to their points, promotions, and rewards, making the program more seamless and
enjoyable.

Insights from social media analysis suggest that interactive, dynamic content can be instrumental in
building customer loyalty. Lulu Happiness would benefit from using real-time customer service and
influencer partnerships on social platforms, fostering a more responsive and engaged online presence
that strengthens customer connections. This aligns with successful tactics seen in leading loyalty
programs, where active engagement on social media enhances both brand visibility and customer
loyalty.

Partnership expansion is another avenue for growth. Competitors have cultivated extensive networks
that allow members to earn and redeem points across a range of brands, offering customers greater
flexibility and added value. By forming partnerships beyond Lulu’s own outlets and collaborating with
well-loved brands in different regions, Lulu Happiness could create a more versatile rewards program
with broader appeal.

Finally, Lulu Happiness could boost its value proposition by introducing premium perks for its top-tier
members. Benefits like priority customer service, extended return policies, or early product access
would align with evolving customer expectations for exclusive experiences, building a stronger
emotional connection that goes beyond simple transactional rewards.

Overall, Lulu Happiness has a solid foundation. By enhancing its loyalty offerings with multi-tier
benefits, gamification, personalized experiences, expanded partnerships, and exclusive premium perks,
Lulu Group International can increase brand loyalty, improve customer satisfaction, and strengthen its
competitive positioning in diverse markets.
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Son, Yoonseock & Oh, Wonseok & Han, Sang & Park, Sungho. (2020). When Loyalty Goes Mobile:
Effects of Mobile Loyalty Apps on Purchase, Redemption, and Competition. Information Systems
Research. 31. 10.1287/isre.2019.0918.

Zikiene, Kristina & Kyguolienė, Asta & Kisieliauskas, Justinas. (2024). The Influence Of Creative And
Innovative Loyalty Programs’ Features On Customers’ Attitudinal, Conative, And Behavioural Loyalty.
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Jarosz, Jan. (2022). The Introduction of Loyalty Programs for the Retail Industry. International journal
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Rahman, Mujibur & Kumar, Dr & Rashid, Md Chand & Singh, Vipul. (2023). Study Of The Influence
Of Loyalty Program Membership Level And Rewards Attractiveness On The Relationship Between
Membership Duration And Store Loyalty.

Khodakarami, Farnoosh ; Andrew Petersen, J. ; Venkatesan, Rajkumar. Customer behavior across

competitive loyalty programs. In: Journal of the Academy of Marketing Science. 2024 ; Vol. 52, No. 3.
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Uncles, Mark & Dowling, Grahame & Hammond, Kathy. (2003). Customer Loyalty and Customer
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APPENDIX
1. Age Group

18 - 25

26 - 35

36 - 45

Above 45

2. Gender

Male

Female
Others

3. How frequently do you shop using loyalty apps?

Frequently (Once a week or more)

Occasionally (1-3 times a month)

Rarely (Less than once a month)

Never

4. How satisfied are you with your current loyalty app?

1 2 3 4 5

Very Uns atisfi ed Very Satisfied

5. Rank the following features of a loyalty app in order of usefulness to you (1 = Most Useful, *
6 = Least Useful)
[Note: Please rank each of the following features by assigning a unique number to each option.

For example, if you assign a “1” to one feature, you cannot use “1” for any other feature. Each feature
should have a different ranking number.]

1 2 3 4 5 6

Point
accumulation

Personalized
offers

App interface
 Exclusive
rewards

Easy
redemption

Gamification

6. Have you used any of these Indian-based loyalty programs?

Greencard (Pantaloons)
Nesto Inaam
Reliance One
Landmark Rewards
Starbucks Rewards

7. Are you aware of any of these loyalty programs?

Blue Rewards (Al- Futtaim)

Target Circle
Tesco Clubcard
None of the above

8. Which types of rewards are most valuable to you?

1 2 3 4 5

Discount
vouchers

Cashback

Free
products/ services

Exclusive experiences
(e.g., VIP events,, early
access)

Partner rewards
(e.g., restaurant
discounts)
9. Do you actively look for loyalty program deals before making a purchase? *

Always
Sometimes
Rarely

Never

10. What do you primarily use loyalty programs for?

Earning points for future discounts

Receiving personalized offers or promotions
Accessing exclusive member-only deals
Participating in gamified experiences (e.g., challenges, competitions)
Tracking spending or rewards
Early access to sales or product launches

Other:

11. What factors influence your decision to continue using a loyalty app?

Consistent rewards
Personalized offers
Ease of app use
Customer service quality
App reliability
Expiry of points

Other:

12. For which categories do you most frequently use loyalty rewards?

Groceries
Fashion
Electronics
Dining
Entertainment
Other:
13. Which factors make a loyalty app appealing to you?

Rewards system
Ease of use
Personalized offers
Customer support
User engagement
Program flexibility
Expiry policies

Other:

14. How important is regional customization in a loyalty app for you?

1 2 3 4 5

Not at all Imp ortan t Very Important

15. How does Lulu's Loyalty program (Lulu Happiness) compare to other apps you’ve used?

Better

Not so different

Need more improvements

16. What improvements would you suggest for Lulu Happiness loyalty app? (if you are using)

More reward options

Better app interface
Faster reward redemption
Improved customer service
More personalized offers
Regional Offers
Regular updates with new features
More frequent promotions and discounts
Gamification (challenges, rewards for usage)

17. Would you recommend your current loyalty app to others?

Yes

No

Maybe
18. Do you have any further recommendations, suggestions, or preferences you would like the Lulu
Happiness loyalty program/app to have?