FUNCTIONALITY OF CUSTOMER LOYALTY PROGRAMMES IN RETAIL

Ivana Plazibat (), Toni Susak () and Tadija Saric
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Ivana Plazibat: University of Split
Toni Susak: University of Split

Economic Thought and Practice, 2016, vol. 25, issue 1, 303-318

Abstract: Consumer loyalty is a concept that attracts more and more attention in the contemporary business world. Loyal customers buy more often, spend more and usually become the companies' advocates through „word of mouth“ marketing. For these reasons retailers today strive for an effective way to improve consumer loyalty. The main question is ''What can we do to win new and keep the old customers?“. To be successful, retailers must pay attention to the desires and needs of their customers. The relation retailer-consumer is the key for success, and ta way of creating it is consumer loyalty programme. This paper analyzes consumer loyalty programmes' capacity to create and build loyal customers, and whether loyal customers are even worth investing in. Efforts will be made to investigate how the loyalty programmes affect other aspects of business through gathering important information about the desires and habits of consumers. In this paper attempt will be made to answer the question if the consumer loyalty programmes could help retailers in acquisition of new customers, creation of new sales concepts or redefinition of their approach to consumers.

Keywords: loyalty programmes; consumer loyalty; efficiency of loyalty programmes (search for similar items in EconPapers)
JEL-codes: M31 (search for similar items in EconPapers)
Date: 2016
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