Ola (India): Building Customer Loyalty to App-Based Services

Name: Ola (India): Building Customer Loyalty to App-Based Services (English version)
SKU: 9B20A064

Nupur Krishna; Ritu Srivastava; Parul Gupta

Product #:9B20A064

Supplier:MDI/Ivey

Discipline:Entrepreneurship, International Business, Marketing

Setting:India, 20189

Details:Case (PDF) • 17 pages • 2020-08-05

Subjects:

Business management Sales and marketing Entrepreneurship International business Marketing

Geography:

Asia India

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$10.54

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Ola Auto India (Ola) was the pioneer in cab aggregation services in India. In 2019, Ola needed to ensure that it remained the customer’s first choice for autorickshaw (auto) booking. Ola had so far faced moderate competition from small players, but competition was increasing from Uber Technologies Inc. With a service that was traditionally chosen for its low cost and easy availability, customer loyalty remained a challenge for all players in the market. How could Ola ensure customer loyalty and maintain its leadership position when Uber was garnering a higher net promoter score than Ola?

Learning Objectives

The case can be used in post-graduate-level courses on marketing management, marketing of services, consumer behaviour, digital marketing, and brand strategy to explain the concept of service delivery, customer experience, and customer loyalty. After working through the case and assignment questions, students will be able to accomplish the following:

Appreciate the dynamics of the auto aggregation services environment and the forces that shape customer loyalty for e-services, particularly aggregation services.
Understand a service delivery model and service value proposition and how to use both to gain a competitive advantage.
Grasp how customer experience, customer engagement, and customer loyalty are interlinked and how organizations build them for long-term gains.
Understand what customers want in a mobile app and how to maximize customer experience through the app.
Understand the role of celebrity and micro-influencer endorsements in driving customer engagement and, subsequently, customer loyalty.