Building loyalty programmes have been a sort of trend amongst e-commerce companies. After Amazon, Zomato and Swiggy, Flipkart had recently launched Flipkart Plus to offer free delivery, exclusive access to sales event, and earn Plus Coin that can be redeemed on third party platform.
Within five days of its launch, Flipkart Plus (launched on August 15) claims to have amassed 1 million members and garnered Rs 1,250 crore in revenue. Unlike Amazon Prime, it’s free but users are required to earn 50 coins through shopping Rs 12,500 worth products on Flipkart to become subscribers.
It’s quite an impressive performance by Flipkart Plus in a very short span. Since Flipkart has 100 million registered user base, its been able to convert 1 per cent into Flipkart Plus subscribers.
Flipkart’s rival Amazon had launched Amazon Prime in 2016, and has about 13 million paid subscribers. It charges Rs 999 annual or Rs 129 monthly subscription fee. Besides offering free and fast deliveries, it offers a bouquet of original video content.
Over the past 8-10 months, Indian consumers have been showing a decent appetite for loyalty programmes offered by e-commerce companies in India. After the success of Gold, Zomato had launched ‘Piggybank’ for online ordering. Within 2 days (or 48 hours), the premium membership program had received 200,000 sign-ups.
At the time of launch, Zomato claimed that Piggybank had 6 times more traction than its previous premium subscription-based model within first 48 hours.
Zomato’s rival Swiggy also had launched subscription Swiggy Super (priced between Rs 99 to 149). It lets subscribers avail unlimited free deliveries across all restaurants listed on the Meituan-backed company.
The development was reported by BusinessLine.