Indian startups coming up with subscription programs has become a preferred way to build loyalty with customers. Amazon, Flipkart, Zomato, Uber have their own subscription program. Paytm plans to onboard 3 million new subscribers through its loyalty program.
The Noida-based unicorn startup offers mix of exclusive incentives for consumers within its ecosystem of products and external partners. Paytm First subscribers will get exclusive offers within the ecosystem of products like payments, movies, and travel. These subscribers will also get attractive offers from external partners like Zomato, Gaana, and Uber.
Paytm First comes with an annual subscription at Rs 750. Deepak Abbot, SVP at Paytm said, “We will aggressively market this subscription product. We have already seen merchants joining us with as much as 80% discount on pricing of their products and services to be part of Paytm First.”
Paytm has over 50 million active users per month, making it one of the top-internet companies in the country. Paytm aims to get 3 million subscribers joining its Paytm First program in the first year alone.
The rising competition in the market has forced these companies to ensure customer stickiness and reward their loyal customers. Amazon is trying to offer timely deliveries, exclusive discounts, and free entertainment services with its Amazon Prime program. Flipkart’s loyalty program is not a paid service. With Flipkart, consumers earn digital coins on every purchase. These coins can be redeemed on subsequent transactions on the platform.
Paytm has an advantage against the competition through its large user base of wallet customers. Offering subscription to loyal customers will help Paytm ward off competition in this space.