Customer loyalty programs

Powerful Essays
Topics: Loyalty program
Abstract

Customer loyalty programs are the currently used methods by companies to increase their revenues and customer relationship as they act as value sharing tools to improve the customer’s perception of the organization. This method is used because to every organization, loyal customers are treated more precious than the company assets. To retain these customers, companies implement several strategies and techniques.
To study the influence and impact of these programme on the customers of Al Ain, this research have been developed. The research was conducted through a survey on 100 customers that were equally of both genders.
The major findings of the study showed that customers believe that loyalty programs help to increase the customer relationship between the companies and the customers. Also, customers join these programs not for perks or discounts but to feel unique, treat differently and help the companies to contribute to the society.
Lastly, it is important for the researches of these companies to focus on the right needs of the customers to motivate them to purchase using these programs. Introduction
To build long term relationship with their customers, most companies are investing on loyalty programs. Through these programs customers interact and communicate with their brands several times. (Kumar, 2009)
This leads to the concept of customer loyalty which is the reason of investing dollars on loyalty programs. To every organization, loyal customers are treated more precious than the company assets. This is because first of all, loyal customers are the source of revenue as they tend to return to the same store for every little purchase. Secondly, they are a mode of selling products to, as they buy even on alternate occasions. That is during discounts or promotions, they tend to purchase items for future use. Finally, they act as an indirect promoting agent when they speak to their friends and relatives of the brands, stores, and



References: Anonymous. (2012, April 14). Carrefour Launches MyCLUB Customer Loyalty Program In UAE. Retrieved from www.loyalty-ip.com: http://www.loyalty-ip.com/news-768867-carrefour-launches-myclub-customer-loyalty-program-in-uae Gull, S., & Tariq, R. (2011). IMPACT OF LOYALTY PROGRAMS IN GROCERY RETAILING ON LOYALTY OF LOCAL CUSTOMERS IN LAHORE, PAKISTAN: AN EMPIRICAL STUDY OF FAMOUS GROCERY RETAILERS IN LOCAL MARKET. Interdisciplinary Journal of Contemporary Research In Business 1007-1019, Institute of Interdisciplinary Business Research. Hikkerova, L. (2011). The Effectiveness of Loyalty Programs: An Application in the Hospitality Industry. International Journal of Business, 150-164. Hjalte, S., & Larrson, S. (2004). Managing Customer Loyalty in Automobile Industry. Lulea University of Technology. Kuma, J., & Purkayastha, M. (2013). STUDY ON THE IMPACT OF RETAIL LOYALTY PROGRAMS ON CONSUMERS’ BUYING BEHAVIOUR; Volume 3, Issue 1. Bangalore: International Journal of Research in IT & Management. Kumar, A. (2009). Impact of Loyalty Programs on Consumer Behaviour. Nagpur: IMT. L.Griffith, T. (2011). Tapping Into Social-Media Smarts. The Wall Street Journal. MAHARAJ, A. (2008). Awareness, perceptions and effects of customer loyalty programmes within the retail sector of the Durban Metropolitan area. Durban: UNIVERSITY OF SOUTH AFRICA. Schultz, R. J., Schwepker, C. H., & Jr, D. J. (2012). "Social media usage: an investigation of B2B salespeople" . American Journal of Business, Vol. 27 Iss: 2, 174 - 194. Sharp, B., & Sharp, A. (1997). Loyalty Programs and Their Impact on Repeat-Purchase Loyalty Patterns. International Journal of Research in Marketing 14 (No. 5), 473-486.

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