Loyalty Programmes: To Be, Or Not To Be!

Introduction

The coming into force of the Digital Personal Data Protection Act, 2023 ("DPDP Act"), with its myriad compliances, has had widespread implications for companies – more so, for B2C companies. In this age of digital advantages, B2C companies have been making the most of the benefits of the digital age that are available to them – whether it is by way of marketing to attract new customers or taking steps to retain existing ones. The first rule of these businesses is, arguably, building a loyal customer base. Towards this end, these companies adopt several methods to promote customer loyalty and increase the rate of client retention.

The lure of loyalty points has proven a very strong motivator, and the promise that a customer's cumulative spends will be rewarded with gifts and discounts appears to have a particularly strong appeal to customers. This is evident from its widespread adoption across the board by most B2C companies. While several businesses