Honda Motorcycle and Scooter
India (HMSI), which Thursday launched a digital loyalty
programme, has said it will not join the discount race as it
is looking for a long-term engagement with its customers.
The statement comes in the wake of most automakers
wooing customers with steep discounts to gain volumes during
the ongoing festival season.
"Discounts will deteriorate the value of our products
and more importantly it will also upset the customer who has
purchased the product before the discount was announced. So,
it is not a good idea and we don't want to join the discount
war," said Minoru Kato, president and chief executive officer,
The programme named Honda Joy Club is open to both new
as well as the existing 39 million customers of the company,
at a cost of Rs 299. However, it can be availed for free till
"Discount is only to the customers. A loyalty
programme is a long-term engagement with customer, to maximise
a customer's satisfaction. That is our direction," said Kato.
YS Guleria, vice-president for sales and marketing,
HMSI, said the last two months were not that strong from the
demand point of view.
"In such kind of market scenario, there would be some
reactions which are there in the market. But as we understand,
we need to be more resilient and patient, rather than being
reactive, and add more value to the customers, rather than
going into cash discounts," he added.
Guleria said it's the first time that a 100 per cent
digital loyalty programme is empowering customers with choice.
"Now Honda customers enrolling on Joy Club programme
can earn virtual Honda currency at both purchase and
subsequently every service visit too," he added.
Benefits range from complimentary Kisan Samadhan
Services to personal accident insurance cover worth Rs 1 lakh
for three years.
Offers under the redemption include discounts on
hospitality, travel, healthcare, apparel, F&B, entertainment,
personal care, insurance, among others.
Honda's agrarian customers can redeem Honda currency
to buy IFFCO Kisan Samadhan services as well, the firm said.
Kato said Joy Club is unprecedented in its concept,
unparallelled in its scale and unmatched in the rewards for
HMSI currently commands 59 per cent market share in
the scooter segment and 14 per cent in the motorcycle market.
India accounts for 32 per cent of the Honda's global
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)