Fun Republic (FR), is introducing the Republic Rewards Card (RR Card). As per Fun republic sources, while most other multiplex players with Customer Loyalty Programs only provide free snacks, this 'Paisa Vasool' offer not just entitles its members to free snacks and Pepsi but also free tickets and many more attractive gifts.
Atul Goel, CEO, Fun Republic, states that it is first of its kind CRM programme being introduced by an entertainment company. He says, "It is a very unique program, first of its kind in India, where the consumer is given instant benefits. The strategy of giving instant benefits is better than that of accumulating points (Usually the way other CRM initiatives reward), since it enables instant gratification and consumer also feels valued."
The reason behind calling the scheme 'Paisa Vasool' is that every rupee spent entitles the member to gain a point close to a 50:50 ratio. When asked how would Fun Republic benefit from this programme, states Goel, "Our main objective is to create loyalty and reward consumers that visit Fun Republic frequently. The Company would be spending heavily on the Program and the only way we see that the Company gets rewarded is by repeat visits of our loyal customers."
Goel believes that the scheme would generate 45,000 new members in the first year of its launch and each of these members will visit Fun Republic at least three times in a year.
Multiplexes, by and large, attract upper SECs. In that scenario would the monitory benefit prove to be very effective for fun republic? Replies Goel, "The Republic Rewards Program does not give discounts on future purchases, it actually gives out free movie tickets, meals and Pepsi with no conditions attached. This plan is valid for all shows and all days, even the busy days. Also, it is valid for all the movies whether hits or flops. The consumer is not going to be bound to come on any particular lean day, show or film. Thus, we feel by giving free products and not discounts, we are going to gain loyalty in a market, which may not respond favourably to discounts."
As per Goel there would be an immediate introspection; any corrections that would be required mid way would be done. Fun Republic also intends to look at expanding offerings to its members once the current system is established and running smoothly.