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.

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.

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.

The Affordable Care Act on Loyalty Programs for Federal Beneficiaries

2013 ◽  
Vol 27 (1) ◽  
pp. 106-108
Author(s):  
Justin J. Piacentino ◽  
Karl G. Williams
Keyword(s):  
Affordable Care Act ◽  
Customer Loyalty ◽  
Loyalty Programs ◽  
Community Pharmacies ◽  
Loyalty Program ◽  
Patient Protection ◽  
Medicaid Beneficiaries ◽  
Definition Of ◽  
Customer Loyalty Programs ◽  
Out Of Pocket Costs

Objective: To discuss changes in the law that allow community pharmacy loyalty programs to include and offer incentives to Medicare and Medicaid beneficiaries. Summary: The retailer rewards exception of the Patient Protection and Affordable Care Act of 2010 and its change to the definition of remuneration in the civil monetary penalties of the Anti-Kickback Statute now allow incentives to be earned on federal benefit tied prescription out-of-pocket costs. The criteria required to design a compliant loyalty program are discussed. Conclusion: Community pharmacies can now include Medicare and Medicaid beneficiaries in compliant customer loyalty programs, where allowed by state law. There is a need for research directly on the influence of loyalty programs and nominal incentives on adherence.

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.

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.

Can Non-tiered Customer Loyalty Programs Be Profitable?

2021 ◽  
Author(s):  
Arun Gopalakrishnan ◽  
Zhenling Jiang ◽  
Yulia Nevskaya ◽  
Raphael Thomadsen
Keyword(s):  
Customer Loyalty ◽  
Customer Retention ◽  
Customer Lifetime Value ◽  
Loyalty Programs ◽  
Loyalty Program ◽  
Customer Lifetime ◽  
Lifetime Value ◽  
Customer Loyalty Programs

We show that a simple, nontiered loyalty program can substantially increase customer lifetime value and that most of this benefit comes from increasing customer retention.

scholarly journals CUSTOMER LOYALTY MANAGEMENT IN THE AIRLINE'S DEVELOPMENT STRATEGY

2021 ◽  
Author(s):  
Yuriy Kolbushkin ◽  
Oleh Cherpak
Keyword(s):  
Consumer Behavior ◽  
Development Strategy ◽  
Customer Loyalty ◽  
Loyalty Programs ◽  
Consumer Loyalty ◽  
Loyalty Program ◽  
Goods And Services ◽  
Advantages And Disadvantages ◽  
Customer Loyalty Programs ◽  
The Impact

This article considers the main approaches to the study of customer loyalty and the reasons that form a certain model of consumer behavior during consumption of goods and services. The place of customer loyalty programs in the company's development strategy and in the system of ensuring its competitive advantages in the market has been established. The importance of consumer loyalty programs as an effective marketing tool for the formation of trusting long-term and mutually beneficial relations of the organization with the consumer is emphasized. The peculiarities of the use of customer loyalty programs by airlines are considered. The "bottlenecks" of customer loyalty programs used by modern airlines have been identified. The key factors influencing the segmentation of the passenger air transportation market are highlighted. The tendencies of growth in the number of airline customer loyalty programs by regions of the world are analyzed. The advantages and disadvantages of the main customer loyalty programs of the world's airlines are systematized. It is established that during the development of a set of measures aimed at increasing consumer loyalty, the airline's management should address the objectives of increasing consumer loyalty, develop a set of measures to increase satisfaction and consumer loyalty, ensure the growth of consumer behavior. In addition, the airline's management should focus on the internal environment and create interest in the airline's staff in the results of the consumer loyalty program, as well as in improving the quality of service and communication with consumers. Effective implementation of measures aimed at increasing consumer loyalty is impossible without regular monitoring of changes in consumer loyalty over a period of time, as well as determining the extent of the impact of measures on consumer loyalty. Having gathered a database of regular customers, the airline gets ample opportunities to analyze the contingent of its customers, evaluate and make operational decisions that will help adjust the customer loyalty program, advertising, and possibly the assortment policy of the airline.

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.

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