CUSTOMER LOYALTY STRATEGY FOR SEMEN INDAH GRAHA’S DIGITAL ORDERING PLATFORM

• Main Author: Ranthy Ramadhan, Apel
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/62859
• Institution: Institut Teknologi Bandung

In a condition where the number of players and the capacity of the cement plant are increasing, the competition in the cement industry is getting fierce due to oversupply. However, not all cement players are aware of the opportunity where building material retailers, as the primary channel for bagged cement sales, will undergo ownership transformation within the next five years, shifting to the second generation (Millennials, 36.3% of total retailer owner population), which are also known as digital natives. This second generation will take over the traditional way of doing business that the first generation (Gen X, 46%) has long practiced. In line with Semen Indah Graha’s (SIG) digital transformation strategy to optimize operational efficiency through digitalization on distribution channels, a digital ordering platform was developed to increase the company's competitive advantage to win the competition at the retailer level. The SIG digital ordering platform's issue is that it still has a small number of active users (9% of total users). To address the problem, a loyalty program is being proposed with the intention of boosting active users. This research analyses and creates recommendations by conducting In-Depth Interviews and concept testing to retailers to learn about their attitudes toward using the platforms and their preferences for loyalty programs, as well as to find out the most suitable marketing communication strategy. This research found that retailers prefer the program that offers instant gratification, which allows users to select the rewards as they want. As a result, retailers prefer a point reward loyalty program to tiered loyalty program. The combination of finding the right target, understanding retailer behavior and aspirations, and finding the best way to communicate is the critical key to develop a loyalty program for SIG digital ordering platform.