Essay on Factors Affecting Customer Loyalty Programs

Essay on Factors Affecting Customer Loyalty Programs

Length: 1703 words (4.9 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

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...

... middle of paper ...

...-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

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Factors Influencing Customer Loyalty

- Research shows that one of the biggest challenges nowadays for the organisations operating in the restaurants and service industries is to provide and maintain the satisfaction of their customers and ensure the brand loyalty (Mumel & Snoj, 2007). It is important for a company to understand what is expected of the company from a customer perspective, and the level to which the company is meeting this expectation. There are two themes that must run parallel to each other when delivering a quality service (Szwarc, 2005)....   [tags: brand, satisfaction, service]

Strong Essays
3173 words (9.1 pages)

Loyalty Programs : A Loyalty Program Essay

- Ninety percent of Canadians are enrolled in at least one loyalty program. Market research has shown that loyalty programs are growing to be very popular in today’s market. A loyalty program is a program offered by a company to customers, who make frequent purchases. Loyalty programs are of benefit to both the consumers and the business. The consumers benefit by receiving coupons, special access to sales and new products whereas the company benefits by gaining an abundance of knowledge about the consumers, through their purchasing habits....   [tags: Marketing, Customer service, Sales]

Strong Essays
1099 words (3.1 pages)

Essay about Application Of Customer Loyalty Programs

- Application of Customer Loyalty Programs to Reduce Churn Drivers Within the service industry many key factors can influence the outcome of any corporation’s success. But the single most important aspect that influences their day to day opportunities is customer loyalty. Many corporations have needed to come up with ideas that allow them to create ways to keep their consumers. One of the ways was the creation of customer loyalty programs. Corporation such as Shoppers Drug Mart a pharmaceutical retail brand has introduced their Optimum card to create a rewards program....   [tags: Shopping mall, Retailing, Incentive]

Strong Essays
711 words (2 pages)

Essay on Factors Affecting Yahoo's Performance

- Introduction Yahoo was incorporated in 1995; its business activity was mainly based on online advertising, promotions, direct marketing, sponsorships and merchandising (Terry, 2006). However, overtime, Yahoo has fallen behind its competitors who generate more revenue than itself due to changes that occurred within its organizational structure. For instance, the complexity in its organizational structure and poor decision making processes. Due to such factors Google who is Yahoo’s foremost competitor, raises twice as much revenue due to better decision making and flexible organizational structures....   [tags: economy, competition, technology]

Strong Essays
771 words (2.2 pages)

Marketing : Brand Loyalty, And Factors That Influence Your Own Competitive Advantage

- With the market gradually enriched, competitive brands are steadily increasing, consumers can choose from different brand. Many companies use brand to create and cultivate their own competitive advantage. This has become one of the main strategies used by companies in the international marketing competition. Brand loyalty is when consumers make purchasing decisions, they too many times to express the preference for a brand. It decides the value and influence of the brand, and affects the establishment of market position....   [tags: Brand, Marketing, Brand loyalty, Brand management]

Strong Essays
1537 words (4.4 pages)

Human Factors Affecting The Workplace Essay

- Abstract This paper studies the details behind errors and accidents taking place in aviation maintenance. It states the human factors and how most of the misfortunes in the aviation industry happen because of them. The Federal Aviation Administration created a chapter on the 8083-30 General Book regarding this topic. The chapter discusses the twelve components of the “Dirty Dozen”. Any one of the dozen can result to an injury, or death, of a person on or off the flight. Considering the human factors in maintenance is absolutely necessary to improve safety and reliability and prevent injury and death....   [tags: Air safety, Aircraft]

Strong Essays
2472 words (7.1 pages)

The Factors Affecting Southwest Airlines Essay

- Not all of the external factors affecting Southwest Airlines are helpful, however. In terms of threats, Southwest Airlines faces several challenges. The airline industry is a highly competitive market and costs are continuing to rise (e.g. rapidly increasing fuel costs and labor costs). Unfortunately, these factors greatly increase the risk of another company emulating the strategies and core competencies of Southwest Airlines (Ross & Beath, 2007). Ross & Beath (2007) mention this threat in regards to JetBlue rapidly approaching innovative, low-cost operations....   [tags: Southwest Airlines, Airline, Management]

Strong Essays
1773 words (5.1 pages)

External Factors Affecting Consumer Behavior Essay

- Executive Summary Consumer is the real asset of any organziation. There are a number of factors that affect on consumer’s buying. Every organziation keeps an eye on those factors and always try to minimize them or have a good impact on its consumer purchase. These factors can be of any type, social, non-socil, cultural and religious factors. In this respect, marketers and producers are forced to conduct intensive market research in order to identify the various external factors that are likely to influence the decision making process or buying behavior of consumers in regards to a particular product....   [tags: Market Selection, Family Roles]

Strong Essays
3307 words (9.4 pages)

Factors Affecting Management of Coca-Cola Essay

- External/Internal Factors Paper (Coke) Plenty of factors, both internal and external impact the planning function for management within an organization. Regardless of size, age, revenue, product, or service, planning is the most fundamental and important component for management. By no means is the Coca-Cola Company an exception. Arguably, Coca-Cola is the most recognized, most popular, as well as the biggest-selling soft drink in history. Synonymous for Coke, the company produced nearly 550 million servings in 2007 selling other brands such as Sprite, Dasani, Bacardi, Fanta, Minute Maid, and Powerade generating a net operating revenue of $28.9 million....   [tags: Business Case Study]

Strong Essays
1848 words (5.3 pages)

The Economic and Political Factors Affecting the U.S. Sugar Subsidy Program

- The Economic and Political Factors Affecting the U.S. Sugar Subsidy Program Graphs Not Available Sugar growers continue to benefit from favorable economic conditions provided by the U.S. government. Yet empirical data reveal a decrease in the aggregate support for sugar legislation in recent years. In 1978, there were 9,187 full or part owners of sugar cane and sugar beet farms, compared to 7,799 farms in 1987. The level of sugar subsidy allocated to the farmers, however, has increased and even favored certain sugar growers disproportionately over others....   [tags: Sugar Subsidy Economics Essays]

Free Essays
6201 words (17.7 pages)