The Effect of Customer Loyalty Programs on Customer Retention in Pakistan

The aim of our study was to build an extremely significant understanding of the influence of client's loyalty programs on buyer's retention. The context of the current study was set for Pakistani consumers. The current study inspects the key role of loyalty programs such as devotion programs, point framework, level reward framework and non-fiscal projects on the dependent variable: client retention. A quantitative analysis method was adopted to achieve the objective of the research. For the data collection, questionnaires were distributed randomly among customers. Our findings suggest that there is a significant impact of loyalty programs for retaining valuable customers. Evidently, a significant effect was noted for different types of loyalty schemes such as Tier reward, Point and Non-monetary schemes.

The effects of frequent flyer programs in the airline industry on customer loyalty

Customer Loyalty Programs are one of the handiest tools to raise brand awareness, and secure long-term and strong ties between a brand and existing consumers. Airline companies have been using frequent flyer programs (FFPs) to retain customers with the expectation of increasing passengers’ loyalty levels. The purpose of this study was to examine the significance of FFPs for customer loyalty, which is of great help for customer retention in the civil aviation industry in the sample of passengers flying from the new Istanbul Airport. Furthermore, we questioned the effectiveness of various services and products offered within FFPs for loyalty, which is decomposed into two main components, behavioral, and attitudinal commitment of loyalty. We evaluated the significance of various demographic factors on passengers’ perception of FFPs services and privileges, and customer loyalty. The study confirmed the vital role of FFPs to build up brand loyalty, where profession, duration of the membership to FFPs, and gender are essential factors.

An analytical investigation of the effectiveness of customer loyalty programs

An analytical investigation of the effectiveness of customer loyalty programs

An analytical investigation of the effectiveness of customer loyalty programs

An analytical investigation of the effectiveness of customer loyalty programs

Temporal Orientation and Customer Loyalty Programs

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.

Can Non-tiered Customer Loyalty Programs Be Profitable?

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.

CUSTOMER LOYALTY MANAGEMENT IN THE AIRLINE'S DEVELOPMENT STRATEGY

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.

Improvement of retail pricing strategies in food distribution networks in terms of global competition (St. Petersburg’s example)

The global crisis that hit the world economy at the end of the first decade of the 21st century has significantly affected Russia. Since 2014 and up until now, due to internal and external reasons, there has been an almost continuous decline in real disposable income of Russian households. Many Russian families are forced to economize down to the essentials. As is generally known, food costs are at the very bottom of Maslow’s hierarchy of needs, and their reduction occurs in the last place. However, within this primary segment of consumption negative processes also occur; in determining the structure of costs the choice is cast over the quality of food and in favour of its affordability. Faced with the fall of its turnover, even large retail chains brands are forced to improve their pricing strategies in order to stabilize their falling revenues in the face of increasing competition. “How can they achieve this?” is the question the authors of two articles in this series attempt to answer. The first article examines problems associated with development of “customer loyalty programs”, and proposes a model for improving the existing system of trade margins. The article also looks at the advantages and limitations of the proposed model.

The role of the sense of entitlement for Russian consumers’ behavior

This study aims to identify the sense of entitlement of Russian consumers’ behavior in customer loyalty programs context. It describes the consumer sense of entitlement concept and its application to consumer behavior research based on an extensive literature review. Consumer sense of entitlement refers to the extent to which a customer expects special treatment from the company. According to foreign research, consumer sense of entitlement as a personality trait remains stable over time and relatively invariant across other factors, and a situational response to the company’s actions affects consumer behavior including the personal style of interaction and their expectations. The paper includes an empirical study of the sense of entitlement of Russian consumers, who are representatives of generations Y and Z. The analysis was conducted on the data collected through a quantitative online survey on the consumer attitude and expectations of airline services. As a result of factor analysis and structural equation modeling, key components of consumer sense of entitlement such as demanding behavior and distinction have been revealed. Th e interrelation with loyalty and complaint behavior was identified for two groups of respondents, namely the members of customer loyalty programs and non-members. The authors revealed the positive impact of consumer sense of entitlement on voicing complaints for both groups of respondents and the positive influence of loyalty on the demanding behavior of respondents who do not participate in loyalty programs. The article represents an initialattempt to examine the Russian consumers’ sense of entitlement.

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

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.