How to develop a customer loyalty programme that offers true value

2017 ◽  
pp. 31-38
Keyword(s):  
Customer Loyalty ◽  
True Value ◽  
Loyalty Programme

scholarly journals The accounting treatment of credit card rewards programmes: a South African perspective (Part 1)

2017 ◽  
Vol 10 (1) ◽  
pp. 107-124
Author(s):  
Sophia Brink
Keyword(s):  
South African ◽  
Customer Loyalty ◽  
Credit Card ◽  
Accounting Standards ◽  
The United States ◽  
Financial Accounting ◽  
International Accounting Standards ◽  
Financial Accounting Standards Board ◽  
African Perspective ◽  
Loyalty Programme

Credit card rewards programmes are a common phenomenon in the South African market. On 1 July 2007 the International Accounting Standards Board (IASB) issued IFRIC 13 Customer Loyalty Programmes to give specific guidance to suppliers on the accounting treatment of customer loyalty programme transactions. Although credit card rewards programmes are specifically included in the scope of this Interpretation, in practice not all credit card rewards programmes currently account for award credits under the revenue deferral model (IFRIC 13). During May 2014 the IASB and the United States Financial Accounting Standards Board (FASB) published IFRS 15 Revenue from Contracts with Customers intended to replace six existing Standards and Interpretations, including IFRIC 13. Currently there is uncertainty whether or not a credit card rewards programme transaction falls within the scope of IFRS 15. Despite concerns raised the Boards decided against providing any additional guidance to credit card rewards programmes and indicated that they leave it up to management

Are your customers grateful? How customer gratitude impacts loyalty programme effectiveness

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anne-Françoise Audrain-Pontevia ◽  
Isabelle Garnier
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Online Survey ◽  
Partial Least Square ◽  
Least Square ◽  
Content Type ◽  
Goods And Services ◽  
French Speaking ◽  
Strategic Role ◽  
Loyalty Programme

PurposeThe purpose of this paper is to identify which loyalty programme (LP) benefits are most likely to create consumer gratitude and increase loyalty towards the brand for consumer goods and services loyalty schemes.Design/methodology/approachFrench-speaking Quebecer (Canada) members of retail LPs answered an online survey. The S-O-R framework was used to investigate the effects of LP benefits on customer loyalty to the brand through the mediating mechanism of gratitude. Data analysis was performed by means of partial least square structural equation modelling.FindingsThree benefits (entertainment, recognition and social) out of five were identified to significantly enhance customer gratitude towards the brand. Neither monetary nor exploration benefits had a direct effect on gratitude or loyalty. In addition, gratitude was positively and strongly related to loyalty and fully mediated the effects of entertainment and recognition benefits on loyalty. As for social benefits, gratitude complementarily mediated their relationship to loyalty.Practical implicationsThe findings are of utmost interest to LP managers. They offer valuable insights to maintain or modify LPs to enhance customer true loyalty. First, they highlight the strategic role of gratitude, which strongly determines customer loyalty. Second, this study's findings indicate which LP benefits should be prioritised to enhance customer gratitude and loyalty.Originality/valueThis research is the first empirical attempt to study the effects of LP perceived benefits on customer gratitude. It addresses the paucity of research on customer gratitude and enhances its importance in retail and relationship literature.

scholarly journals The accounting treatment of credit card rewards programmes: a South African perspective (Part 2)

2017 ◽  
Vol 10 (2) ◽  
pp. 206-234
Author(s):  
Sophia Brink
Keyword(s):  
South African ◽  
Customer Loyalty ◽  
Credit Card ◽  
The United States ◽  
Financial Accounting ◽  
Financial Accounting Standards Board ◽  
Proposed Model ◽  
African Perspective ◽  
Current Guidance ◽  
Loyalty Programme

Most credit card issuers offer their card holders participation in a customer loyalty programme. On 1 July 2007 the IASB issued IFRIC 13 Customer Loyalty Programmes to give specific guidance to suppliers on the accounting treatment of customer loyalty programme transactions. Despite the fact that credit card rewards programmes are specifically included in the scope of this Interpretation, in practice not all credit card rewards programmes currently account for award credits under the revenue deferral model (IFRIC 13). These divergent practices make one question the relevance of the current guidance provided in IFRIC 13 to credit card rewards programmes; otherwise what is the reason behind credit card rewards programmes accounting for these transactions differently? During May 2014 the IASB and the United States Financial Accounting Standards Board (FASB), published IFRS 15 Revenue from Contracts with Customers intended to replace six existing Standards and Interpretations, including IFRIC 13. The aim of IFRS 15 is to streamline accounting for revenue across all industries and to correct inconsistencies in existing Standards and practices. Credit card rewards programme respondents raised many queries and uncertainties based on the proposed model but despite these concerns the Boards decided against providing any additional guidance to credit card rewards programmes. They indicated that they leave it up to management

An Empirical Analysis of the Effect of a Retailers Loyalty Programme on Their Customers’ Loyalty

2017 ◽  
Vol 18 (2) ◽  
pp. 445-464 ◽  
Author(s):  
Sakhhi Chhabra
Keyword(s):  
Empirical Analysis ◽  
Customer Loyalty ◽  
Quantitative Research ◽  
Store Loyalty ◽  
Value Perception ◽  
Loyal Customer ◽  
Customer's Loyalty ◽  
Behavioural Aspects ◽  
Loyalty Card ◽  
Loyalty Programme

Traditionally, marketing has focused on acquiring customers and gaining market share rather than on retaining existing customers. With increasing competition, there is a need for developing more sophisticated activities in order to retain the existing customers. Consequently, loyalty programmes (LPs) are being employed as a strategic business goal in order to gain customers’ loyalty. In this research, the main aim is to find whether these LPs affect customers’ loyalty towards the retailer by closely analyzing the loyalty card members of a leading Indian departmental store in Delhi. Quantitative research (regression and correlation) was conducted in the form of a questionnaire to test a model whereby the effect of value perception of the LP is tested on programme loyalty and the effect of programme loyalty is then tested on brand and store loyalty that together make the consumer a loyal customer. A total of 120 questionnaires were collected and the findings reveal that LPs do affect customers’ loyalty towards the retailer but they are not the sole factor in a customer’s loyalty development. The study is unique as it confirms the customers’ loyalty towards a retailer taking into account both attitudinal and behavioural aspects of loyalty. Apart from testing the model, other elements such as habit, convenience, offers, incentives and reputation are tested as well. Results of the study ascertain that customers focus heavily on the variety of offers, incentives and habit as other reasons for developing customer loyalty. Thus, LPs work for companies but they have to take the whole package into consideration.

scholarly journals Identifying The Factors That Influence Retail Customer Loyalty And Capitalising Them

2012 ◽  
Vol 11 (11) ◽  
pp. 1223
Author(s):  
Michael Colin Cant ◽  
Michael Du Toit
Keyword(s):  
South Africa ◽  
Customer Service ◽  
Customer Loyalty ◽  
Financial Services ◽  
The United States ◽  
Relationship Building ◽  
Marketing Plan ◽  
Customer Base ◽  
Loyal Customer ◽  
Loyalty Programme

Much has been said about loyalty and the advantages that a loyal customer base offers to an organisation and more specifically to retail customers. With more than 2 billion loyalty programme memberships including hotel, supermarket, airline and financial services in the United States alone it is clear that loyalty programmes are an essential part of the marketing plan and strategy of retail organisations a road to survival, growth and profits. This study focussed on one particular clothing retailer in Gauteng that on its own represents 20.3% of the market making it the largest clothing retailer in South Africa. Gauteng was selected due to its stature as the largest clothing retailer in South Africa and also the nature of its customer base which consists of three distinct groups of customers: (1) cash only non-loyalty programme members, (2) cash only loyalty programme members, and (3) credit customers who purchase on terms. This study investigated the factors that influence customer loyalty amongst members of a retail loyalty programme in the apparel retail industry and found that the two most important drivers of customer loyalty were merchandise availability and customer service related variables. Price did not feature as an important driver of loyalty opening opportunities for retailers to focus on loyalty marketing strategies that do not revolve solely around price but rather focus on long-term relationship building. The responses received from this research were illuminating and will be of value to retailers who have an existing loyalty programme or are contemplating the starting of a programme.

Pengaruh Service Delivery System Terhadap Loyalitas Nasabah Penabung Suatu Survey Pada Bank Rakyat Indonesia Cabang Palembang)

2018 ◽  
Vol 16 (2) ◽  
pp. 90
Author(s):  
Rohmial Rohmial
Keyword(s):  
Service Delivery ◽  
Delivery System ◽  
Customer Loyalty ◽  
Simple Random Sampling ◽  
Matrix Analysis ◽  
Survey Method ◽  
Service Delivery System ◽  
Physical Support ◽  
Dependent Variables ◽  
Contact Personnel

The objective of this study are : 1) the application of service delivery system that can be applied by Bank Goveerment in Palembang, 2) the influence of physical support on customers, 3) the influence of contact personnel on loyalty of the customers of Bank Goverment in Palembang, 4) the influence of service delivery system on customer loyalty at Bank Goverment in Palembang. This study is done by survey method so as to describe the response from respondents. The samples are taken by using simple random sampling with 100 respondents. The instruments are observation, quesionares and interview, the data analysis is done by using descriptive and matrix analysis. The results of this research shows that all independent variables (physical support and contact personnel) significantly and positively influence the dependent variables (loyalty of the customers).

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