Factors Affecting Customer Loyalty Programs

In 2012, Boonying Kongarchapatara & Randall Shannon in their paper, ‘Investigating the Effectiveness of a Loyalty Program Through the Relationships of Program Design, Implementation, and Customer Loyalty’ emphasize on the factors which affect the customer loyalty programmes through their design and implementation phases.

The study focusses that a well-designed structure of the loyalty program helps in gaining a strong hold on customer loyalty and makes a positive impact on the minds of the customers. Following the structure and an efficient implementation of the loyalty program will have a greater impact on the perceived value and customer loyalty.

In 2011, Swati Singh and Manju Lamba in their paper ‘Maintaining CRM in Apparel Retailing through Touch points’ highlighted on Customer Relationship Management which is the most talked about business mantra these days. With the advent of CRM in late 1990s, marketers are of the opinion that appropriate vigil and analysis of customer data might bring wonders for the organization. Indian apparel retail sector is booming, leading to intense competition. The war is to attract new customers but most importantly to retain the old ones. The companies are continuously adopting the process of generating custom CRM initiatives to increase their customer base. The study is focussed at establishing the importance of genuine customer touch points in CRM. This empirical study establishes the important touch points from customer’s point of view.

Michal Stojanov’s (2009) study on ‘Importance of customer relationship management for retail trade’ has written about the highly competitive environment for customer relationship management (CRM) is concerning on critical importance of clients for ev...

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...-period decision making to dynamic or multiple-period decision making which implies customer store preference. In this study, the author models customers’ response to a loyalty program under the assumption that purchases represents the sequential choices of customers who are solving a dynamic optimization problem.

Mujib-ur Rehman in his paper ‘Loyalty Programs and Retail Performance: A Case of Indian Retailers’ illustrated that due to fiercely competitive Indian retail scenario, retailers launched loyalty programs in order to offer tangible and intangible benefits. This helps in engaging the customers as well as driving sales. In order to succeed, it is essential to understand the customer’s mindset and develop a strong bond with them. Thus, loyalty program is one of the most dominant marketing tools used to enhance retail performance and grow consumer loyalty