Insight and loyalty: Building a data-driven loyalty programme for Cambodian retailers

<p>The difficulties in making effective decisions and the abundant amount of data have driven many businesses to adopt data-driven processes using enterprise applications like business intelligence. Although these applications have been around over the last decade and the benefits of using them are evident in several countries, Cambodia still falls behind in adopting such technology. This thesis, therefore, aims to explore opportunities for a data tool, specifically tailored to meet the needs of retail firms in Cambodia. In order to achieve the objective, the study employs a two-phase approach. In the first phase, a qualitative method through in-depth interview was undertaken. Six managers from different retail businesses were interviewed in the areas of: data utilisation, perception and investment towards data technologies, and relevant future plans. Findings reveal that the incorporation of data in decision-making was limited. Although managers did embrace the use of data and acknowledge its importance, the costly nature of the technologies held them back from major investments. The findings imply that although there are opportunities for data-related tools for enterprises, certain components are necessary for their success. Managers tended to look for technology that produced final results with little or no technical assistance from their side. The ability to gather data outside their consumer base is also emphasised. The need for a low-cost application is an important implication. The first phase of the research led to the decision to create a data-driven loyalty programme due to its double benefits for firms (loyalty and data), its low cost, and the ability to capture data from a large base of consumers. To understand consumers’ usage and attitude towards loyalty programmes, the second phase of the research was carried out using a quantitative method. One survey was distributed and completed by 187 respondents, the majority of whom were teenagers and young adults, a potential segment for the loyalty programme. Data was cleaned and analysed using descriptive analysis. Findings from consumers revealed interesting insights into how loyalty programmes are perceived in relation to shopping behaviours. Consumers were open to a new loyalty programme and embraced the idea of combining all the cards into one application. Flexibility was found to be the most important factor driving the participation of loyalty programmes. That covered the ability to set up their own plan for reward redemption and to receive personalised communication. Technology was another important success factor, specifically mobile technology that allows consumers to manage their profile through touch on their smart devices. A business case for the loyalty programme has been developed based on the findings from both phases, relevant literature, and discussions with others. The target segment, who are the urban, young, and middle- and high-income class, was studied. The potential market for the programme was assessed by looking at the size, need and trends of the segment. Competition in the country and the ASEAN is also evaluated. The programme adopts a multi-sided platform model and the closed-loop mechanics. Furthermore, the details of how the programme is designed and managed are discussed. At this early stage, many other features still need to be further studied, including the technical development, detailed financial forecast and planning, and team management.</p>

Insight and loyalty: Building a data-driven loyalty programme for Cambodian retailers

<p>The difficulties in making effective decisions and the abundant amount of data have driven many businesses to adopt data-driven processes using enterprise applications like business intelligence. Although these applications have been around over the last decade and the benefits of using them are evident in several countries, Cambodia still falls behind in adopting such technology. This thesis, therefore, aims to explore opportunities for a data tool, specifically tailored to meet the needs of retail firms in Cambodia. In order to achieve the objective, the study employs a two-phase approach. In the first phase, a qualitative method through in-depth interview was undertaken. Six managers from different retail businesses were interviewed in the areas of: data utilisation, perception and investment towards data technologies, and relevant future plans. Findings reveal that the incorporation of data in decision-making was limited. Although managers did embrace the use of data and acknowledge its importance, the costly nature of the technologies held them back from major investments. The findings imply that although there are opportunities for data-related tools for enterprises, certain components are necessary for their success. Managers tended to look for technology that produced final results with little or no technical assistance from their side. The ability to gather data outside their consumer base is also emphasised. The need for a low-cost application is an important implication. The first phase of the research led to the decision to create a data-driven loyalty programme due to its double benefits for firms (loyalty and data), its low cost, and the ability to capture data from a large base of consumers. To understand consumers’ usage and attitude towards loyalty programmes, the second phase of the research was carried out using a quantitative method. One survey was distributed and completed by 187 respondents, the majority of whom were teenagers and young adults, a potential segment for the loyalty programme. Data was cleaned and analysed using descriptive analysis. Findings from consumers revealed interesting insights into how loyalty programmes are perceived in relation to shopping behaviours. Consumers were open to a new loyalty programme and embraced the idea of combining all the cards into one application. Flexibility was found to be the most important factor driving the participation of loyalty programmes. That covered the ability to set up their own plan for reward redemption and to receive personalised communication. Technology was another important success factor, specifically mobile technology that allows consumers to manage their profile through touch on their smart devices. A business case for the loyalty programme has been developed based on the findings from both phases, relevant literature, and discussions with others. The target segment, who are the urban, young, and middle- and high-income class, was studied. The potential market for the programme was assessed by looking at the size, need and trends of the segment. Competition in the country and the ASEAN is also evaluated. The programme adopts a multi-sided platform model and the closed-loop mechanics. Furthermore, the details of how the programme is designed and managed are discussed. At this early stage, many other features still need to be further studied, including the technical development, detailed financial forecast and planning, and team management.</p>

Influence of service quality, loyalty programme and perceived value on word-of-mouth behavior of domestic and international airline passengers in India

Purpose This paper aims to investigate the combined effect of airline service quality (ASQ), loyalty programme and perceived value (PV) on word-of-mouth (WOM) behavior of passengers’ traveling to domestic and international destinations from India. Design/methodology/approach Passenger’s perception on service quality, loyalty programme and PV varies with flight type, which can affect WOM. This study was designed to know whether destination based difference in passengers’ perception on airline services affects their WOM. Hence, a sample of 554 frequent passengers was taken, which includes 358 domestic and 196 international passengers. The responses were collected using well-structured questionnaire. The hypothetical model was developed and tested using structural equation modeling using analysis of a moment structures (AMOS). Findings Travel destination (flight) type moderates significantly the effect of ASQ on WOM behavior. ASQ affects WOM behavior more in domestic passengers. PV and loyalty programme do not moderate significantly with respect to destination type. PV was found to have significant influence on international passengers. However, loyalty programme was significant among domestic passengers. Practical implications Airline managers can develop appropriate marketing strategies targeting the passenger influencing attributes. ASQ is the most significant attribute applicable to both flight types. The airlines can focus on attractive ticket fares for international passengers and more loyalty programme benefits for domestic passengers. Originality/value This study examined the combined effect of ASQ, loyalty programme and PV on WOM behavior of passengers traveling in domestic and international sectors, which has not been researched yet.

DOES THE IMPLEMENTATION OF LOYALTY PROGRAMMES LEAD TO GAINING A LOYAL CUSTOMER?

An increasing number of retailers and service providers are aware of the importance of loyalty programmes as a tool to support sales. The aim of this paper is to evaluate the benefits of loyalty cards for sales support at three selected companies in the Czech market, especially Kaufland, Globus and Tesco, and to determine whether the implementation of the loyalty programme leads to gaining a loyal customer. The basic source of data is the data obtained through an interview and the CAWI method, which consists in collecting data using an online questionnaire survey. The obtained data are evaluated using a prognostic marketing and comparison method. In total, responses were obtained from 121 respondents. The results of the research show that the implementation of loyalty programmes does not lead to gaining a more loyal customer. If the customer does not have to register to join the programmer, he does not perceive himself as loyal to the brand. The Kaufland Card programme has become the most used loyalty programme. These conclusions lead to new ideas that could affect both the future development of loyalty programmes and their structure.

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

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.

Digitale Kundenbindung gewinnt an Zugkraft

Loyalty-Programme haben in den vergangenen Jahren ihre Funktionen und Services erweitert. Durch die Digitalisierung des Handels ist das Smartphone der wichtigste Einkaufsbegleiter geworden. Wie sich daraus nutzen ziehen lässt, war das Thema der digitalen Young Business Factory Now.

Loyalty Programme and Meta-Services

This research focuses on the customers' perception of loyalty programme offered by networked service providers such as airline alliances. The authors call such services meta-services. Their main hypothesis is that after experiencing meta-services delivered by meta-service providers, consumers synthesise a part of their perceptions in terms of the perceived benefits of the loyalty programme. This assessment will influence the perceived value, satisfaction, and at last behavioural intentions. The authors' point of view is to highlight the determinants of this assessment, including the quality of the proposed services and rewards. A quantitative survey was conducted in an airline alliance context. A structural equation model is tested in order to verify if the hypotheses are acceptable. It also shows how passengers build their global evaluation of a frequent flyer program and how far it influences their future behaviour towards the alliance members.

Von Tante Emma und dem Milchmann lernen

Loyalty-Programme und RabattAktionen sollten mehr können als Punkte zu verteilen, sagt Michael Bregulla, Experte von Ingenico Marketing Solutions, in einem Gastbeitrag.

Effect of “Single” vs. “Multiple” possession and usage of loyalty programme on re-purchase intention behavior of airline frequent passengers in India

Purpose: This paper tries to find out the effect of single vs. multiple possession and usage of frequent flyer programme by frequent passengers on their re-purchase intention behavior in India. Design/methodology/approach: This paper tested the hypotheses, whether the variations in possession level of frequent flyer programme influences the relationship among the selected antecedent variables such as passengers’ satisfaction with the loyalty programme, passengers’ level of trust in the airline and the perceived brand image on the re-purchase intention behavior of frequent passengers. A structural equation model depicting the re-purchase behavior of frequent flyers were developed and tested. Findings: There exists an overall statistical validity of the model build-up by using structural equation modeling. Significant differences are observed in brand and trust variables in influencing re-purchase intention behavior of frequent passengers. This finding was further verified in correspondence to the variations in loyalty programme status and possession levels of loyalty programme memberships.Practical implications: Re-purchase behavior of passengers holding single and multiple loyalty programme memberships were compared and drawn implications for the airlines to guesstimate re-purchase intentions of regular passengers. Originality/value: The empirical findings of this study proves that there is a tendency to shift from single to multiple possessions of airline loyalty memberships while the frequent passengers progress on their travel needs. This study proclaimed that passengers possessing single loyalty programme are more influenced by brand image of the airline where as passengers using multiple loyalty programmes are by and large accustomed by means of the trust in the airline services than its brand image.