scholarly journals CUSTOMER LOYALTY PROGRAM AS A TOOL OF CUSTOMER RETENTION: LITERATURE REVIEW

2016 ◽  
Vol 4 ◽  
pp. 199-203 ◽  
Author(s):  
Magdalena Hofman-Kohlmeyer
Keyword(s):  
Literature Review ◽  
Customer Loyalty ◽  
Financial Incentives ◽  
Marketing Strategies ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Customer Information ◽  
Affective Components ◽  
A Company

Customer loyalty is a highly valuable asset. To gain loyalty of current customers and create attachments, the growing ranks of entrepreneurs decide on implementation of loyalty programs. This article aims at providing a theoretical outlook on various approaches on loyalty programs derived from literature review and identifing the factors which lead to success of a company. The literature review offers some directives for managers which are useful in the preparation of rewarding programs and are also a source of valuable customer information that helps in building future marketing strategies. We concluded that loyalty programs impact customers using financial and psychological factors to maintain long-term loyalty. Furthermore, loyalty programs should include financial as well as affective components as only financial incentives don’t guarantee a long-term relationship.

Building an Effective Customer Loyalty Program

2018 ◽  
pp. 195-212 ◽  
Author(s):  
Kumari Smriti
Keyword(s):  
Customer Loyalty ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Targeted Marketing ◽  
The Right ◽  
Customer Loyalty Programs ◽  
A Company ◽  
Loyal Customers

Customer loyalty schemes is a practice, employed by retailers, to reward their loyal customers. It entails giving incentives such as loyalty cards, reward points, etc. These also serve as a repository of information about a customer which helps in targeted marketing. This chapter analyses some of the successful customer loyalty programs by companies, discusses some of the reasons of failures of such program and looks at what industry experts have to say in this regard. We then collate all this information to suggests a process to identify and choose the right customer loyalty programs for a company.

scholarly journals Effect of customer loyalty program on customer satisfaction and its impact on customer loyalty

2019 ◽  
Vol 9 (1) ◽  
pp. 15-23
Author(s):  
Salihah Khairawati
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Sampling Technique ◽  
Loyalty Programs ◽  
Survey Method ◽  
Business Managers ◽  
Loyalty Program ◽  
Retail Business ◽  
Customer Loyalty Programs ◽  
A Company

The aim of this research is to examine the effect of the customer loyalty program on customer satisfaction and its impact on customer loyalty. This program is developed by the company in order to increase customer satisfaction. Optimal customer satisfaction will be able to create customer loyalty. For a company, customer loyalty will guarantee the company’s income to be constantly optimal. The research is conducted using the survey method involving 110 customers and 100 feasible data used. The sampling technique used is judgment sampling and data collected through the questionnaire. It uses SEM in examining hypotheses assisted by software AMOS version 20.0. Member card significantly affects customer satisfaction, while discount promo has no significant effect on customer satisfaction and it also doesn’t affect customer loyalty. Member cards and discount promo have a direct effect on customer loyalty. In general, it can be understood that the customer loyalty program applied by Alfamart either member card or discount promo affects customer satisfaction and has an impact on customer loyalty. This research gives input to retail business managers in managing customer satisfaction through the proper development of customer loyalty programs.

Customer Retention Strategies and Customer Loyalty

2017 ◽  
pp. 1178-1201
Author(s):  
Süphan Nasır
Keyword(s):  
Customer Loyalty ◽  
Customer Retention ◽  
Marketing Strategies ◽  
Loyalty Programs ◽  
Competitive Markets ◽  
Retention Strategies ◽  
Defection Rate ◽  
A Company ◽  
Loyal Customers

Since loyal customers are the most important assets of a company, companies have been giving attention to developing customer retention and loyalty programs. The fundamental purpose of customer retention efforts is to ensure maintaining relationships with value-adding customers by reducing their defection rate. Creating customer loyalty is essential for the survival of the company in highly competitive markets. Thus, this chapter starts with indicating the significance of customer retention marketing strategies for the company by revealing the economics of retention marketing programs. Requirements for developing effective customer retention strategies are explained. Finally, after discussing types of commitment, this chapter ends by explaining loyalty programs and win-back strategies.

scholarly journals On being loyal to a casino: The interactive influence of tier status and disordered gambling symptomatology on attitudinal and behavioral loyalty

2021 ◽  
Author(s):  
Samantha J. Hollingshead ◽  
Michael J. A. Wohl ◽  
Christopher G. Davis
Keyword(s):  
Longitudinal Research ◽  
Marketing Strategies ◽  
Loyalty Programs ◽  
Disordered Gambling ◽  
Loyalty Program ◽  
Cross Sectional ◽  
Behavioral Loyalty ◽  
Problem Gamblers ◽  
Cross Sectional Design

AbstractBackground and AimsCasino loyalty programs are marketing strategies designed to foster attitudinal (i.e., identification and satisfaction) and behavioral (i.e., spending) loyalty among gamblers by offering rewards to members. Casino loyalty programs use a tier-based structure to segment members who spend more money into higher tiers, where they receive better rewards (compared to lower tiered members). Tier-based structures may encourage increased expenditure among patrons, especially among players living with a gambling disorder. The current work aimed to examine whether tier status and disordered gambling symptomatology interact to predict attitudinal and behavioral loyalty.MethodsStudy 1 used a cross-sectional design to examine whether tier status and disordered gambling symptomatology interact to predict self-reported loyalty among a sample of American casino loyalty program members (N = 396). In Study 2, archival player account data from Canadian casino loyalty program members (N = 649) were analyzed to examine whether tier status and disordered gambling symptomatology interact to predict objective measures of behavioral loyalty.ResultsThe greatest effect of tier status on attitudinal and behavioral loyalty was observed among non-problem gamblers in the highest tiers. Tier status, however, did not influence loyalty among members high in disordered gambling symptomatology.DiscussionResults suggest that once gambling has become problematic, loyalty programs may not influence player attitudes and behaviors. Non-problem gamblers may be particularly susceptible to the tiered structure of the programs.ConclusionNon-problem gamblers may benefit from casino loyalty programs in the short-term but longitudinal research is needed to understand the long-term influence of membership.

Customer Retention Strategies and Customer Loyalty

2015 ◽  
pp. 244-267
Keyword(s):  
Customer Loyalty ◽  
Customer Retention ◽  
Marketing Strategies ◽  
Loyalty Programs ◽  
Competitive Markets ◽  
Retention Strategies ◽  
Defection Rate ◽  
A Company ◽  
Loyal Customers

Since loyal customers are the most important assets of a company, companies have been giving attention to developing customer retention and loyalty programs. The fundamental purpose of customer retention efforts is to ensure maintaining relationships with value-adding customers by reducing their defection rate. Creating customer loyalty is essential for the survival of the company in highly competitive markets. Thus, this chapter starts with indicating the significance of customer retention marketing strategies for the company by revealing the economics of retention marketing programs. Requirements for developing effective customer retention strategies are explained. Finally, after discussing types of commitment, this chapter ends by explaining loyalty programs and win-back strategies.

scholarly journals Customer Loyalty Program and Retention Relationship

2021 ◽  
Vol 58 (1) ◽  
pp. 5069-5074
Author(s):  
Pratik Pal Bariha
Keyword(s):  
Customer Loyalty ◽  
Geographic Location ◽  
Loyalty Programs ◽  
Age Group ◽  
Loyalty Program ◽  
Research Papers ◽  
Random Data ◽  
Different Types ◽  
The Impact

The aim of this study is to achieve the understanding on the different types of loyalty programs and their impact on the customers buying decision, patterns, behavior and ultimately the impact of their retention towards the brand or product in a long term. To achieve the conclusion, different research papers with the different surveys and geographic location were taken with random data. The participants in the surveys were primarily students and people from age group between 20-45 years. The finding from the study clearly shows that there is a significant impact of customer retention on different types of loyalty program.

Temporal Orientation and Customer Loyalty Programs

2021 ◽  
pp. 193896552110084
Author(s):  
Flavia Hendler ◽  
Kathryn A. LaTour ◽  
June Cotte
Keyword(s):  
Customer Relationship Management ◽  
Customer Loyalty ◽  
Customer Relationship ◽  
Loyalty Programs ◽  
Temporal Orientation ◽  
Loyalty Program ◽  
Hospitality Managers ◽  
Customer Loyalty Programs ◽  
Depth Interviews

Loyalty programs play a prominent role in many firms’ customer relationship management programs, but not all programs are successful. Providers need to understand not only what benefits customers want in a program, but also how they want to be treated as a loyalty member. We posit that because loyalty programs offer rewards that are time-bound (immediate or delayed), and that loyalty programs seek to develop a relationship that extends over time, an important, but overlooked dimension for hospitality managers to consider is how their customers view time. Our research focuses on customers’ temporal orientation—the tendency to think in the present, future, or past. We use depth interviews to explore existing casino loyalty program participants’ thoughts and feelings about their ideal loyalty program. We find the customers’ temporal orientation influences the type of relationship as well as the type of benefits sought in the loyalty program. Our research offers managerially practical insights for identifying customers more likely to engage in co-production of a long-term loyalty relationship as well as for creating communication strategies that are likely to interest and provoke different temporal mindsets.

scholarly journals NECESSITY OF CUSTOMER LOYALTY FORMATION AND ITS PECULIARITIES IN THE TELECOMMUNICATION SERVICES

2019 ◽  
Vol 1 ◽  
pp. 142
Author(s):  
Iveta Linina ◽  
Velga Vevere ◽  
Rosita Zvirgzdina
Keyword(s):  
Customer Loyalty ◽  
Customer Relations ◽  
Loyalty Programs ◽  
Telecommunication Industry ◽  
Consumer Loyalty ◽  
Loyalty Program ◽  
Telecommunication Services ◽  
Corporate Loyalty ◽  
Time And Energy ◽  
To Receive

Everyday life is unimaginable without telecommunication services; they are the significant players in the national economy. All business activities, including the ones of telecommunication services, are directed towards the satisfaction of customers’ needs and wants, and hence towards the profit earning. This process, in its turn, entails the formation of different company/customer relations, where both parties want to gain something out of these relations. The company strives, first of all, to increase the turnover and profit, while the customer wants to receive the desired services, information and the proper attitude. These customer gains can be basis of the loyalty formation, that is very important for the company, because the process of attracting new consumers always involves spending money, time and energy. The goal of this work is to explore the loyalty formation process and its peculiarities in the telecommunication services. Based on the results of the study, it was found that the experts rated the offer of corporate loyalty programs at the lowest, then followed the service offer and the price, but slightly higher the service quality. The experts assigned the highest rating to the prestige of the service. Based on the low assessment of the experts in the telecommunication industry of the loyalty program offer, the authors propose the conceptual consumer loyalty model for the practical use.

The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty

2007 ◽  
Vol 71 (4) ◽  
pp. 19-35 ◽  
Author(s):  
Yuping Liu
Keyword(s):  
Longitudinal Data ◽  
Loyalty Programs ◽  
Purchase Behavior ◽  
Convenience Store ◽  
Long Term Effects ◽  
Limited Evidence ◽  
Loyalty Program ◽  
Marketing Process ◽  
Long Term Impact

Despite the prevalent use of loyalty programs, there is limited evidence on the long-term effects of such programs, and their effectiveness is not well established. The current research examines the long-term impact of a loyalty program on consumers' usage levels and their exclusive loyalty to the firm. Using longitudinal data from a convenience store franchise, the study shows that consumers who were heavy buyers at the beginning of a loyalty program were most likely to claim their qualified rewards, but the program did not prompt them to change their purchase behavior. In contrast, consumers whose initial patronage levels were low or moderate gradually purchased more and became more loyal to the firm. For light buyers, the loyalty program broadened their relationship with the firm into other business areas. The findings suggest a need to consider consumer idiosyncrasies when studying loyalty programs and illustrate consumers' cocreation of value in the marketing process.

Innovating the customer loyalty program with social media

2019 ◽  
Vol 32 (5) ◽  
pp. 807-823 ◽  
Author(s):  
Wu He ◽  
Xin Tian ◽  
Feng-Kwei Wang
Keyword(s):  
Social Media ◽  
Customer Loyalty ◽  
Theory And Practice ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Data Set ◽  
Content Type ◽  
Media Technologies ◽  
Customer Loyalty Programs

Purpose Few academic studies specifically investigate how businesses can use social media to innovate customer loyalty programs. The purpose of this paper is to present an in-depth case study of the Shop Your Way (SYW) program, which is regarded as one of the most successful customer loyalty programs with social media. Design/methodology/approach This paper uses case study research as the methodology to uncover innovative features associated with the SYW customer loyalty program. The authors collected the data from SYW’s social media forums and tweets. The data set was analyzed using social media analytics tools including the R package and Lexicon. Findings Based on the research results, the authors summarize innovative social media features identified from SYW. The authors also provide insights and recommendations for businesses that are seeking to innovate their customer loyalty programs using social media technologies. Originality/value The results of this case study set a good example for businesses which want to innovate and improve their customer loyalty programs using social media technologies. This is the first in-depth case study on the SYW program, one of the most successful customer loyalty programs with social media. The results shed light on how social media can innovate customer loyalty programs in both theory and practice.

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