An empirical analysis of the components of retailer customer loyalty Essay

An empirical analysis of the components of retailer customer loyalty programs - Essay Example ks into one of the ways of capturing customer for loyalty and retention for the continuous competitive advantage of a business enterprise – through a retailer customer loyalty program. The concept of customer loyalty program is simple and yet complicated because of the multiple activities related to it but the goal is always the same – to encourage repeat business. Often, the business enterprises or the retailers, as they are the focus of this study offer a membership club to its customers. The members are then entitled to benefits, perks, privileges, discount schemes or whatever activities and benefits that the company has lined up exclusive to these member-customers. As the study by Fiorito, Gable and Tople stated: â€Å"one means of achieving loyalty, from the activities engaged in by retailers (e.g. measuring customer satisfaction; handling complaints) to the benefits being offered (e.g. providing financial incentives to customers; sending customers thank you notes) that contribute to maintaining a long-lasting, permanent relationship with customers† (Fiorito, Gable and Tople, 2006, p 32). to determine the benefits offered to customers and activities taken by retailers whether or not they have formal customer loyalty programs, whether there are differences in the benefits/activities of retailers with and without formal loyalty programs whether specific benefits/activities of retailers can predict whether or not they have formal loyalty programs (Fiorito, Gable and Tople, 2006, p 32). It also wanted to know the evaluation of the existing customer loyalty programs by its perceived success through meeting the enterprise’s expectations and increase in sales and if the program will be implemented continuously (2006, p 34). Thus, these are three specific areas explored by the study. Primarily, it was aimed to know the specific benefits and activities that were designed for the customers in line with the customer loyalty schemes even if the retailers do