Art of Loyalty Program on Customer Retention: Building Love and

Trust towards a Company

Ever been loyal to a brand where you avail any gadget from only one company? Starting off with
your television, computer, laptop, phone to your watch have the same logo? Well, you should
consider yourself as a 'loyal customer' because you had chosen only one company or brand over a
thousand brands that offers the same product because YOUR chosen company is the only one that
makes you happy and satisfied.

Customer loyalty is the act of choosing one company’s products and services consistently over
your chosen companys competitors. It is the customer's willingness to buy from or work with a
brand again and again and it's the result of a positive customer experience, customer satisfaction
and the value of the products or services the customer gets from the transaction. When a customer
is loyal to one company, they are not easily swayed by price or availability that other companies
offer. They would rather pay more and ensure the same quality service and product they know and
love. Customers stays faithful to one company for as long as it gives the satisfaction they need.

You want to ensure the customers you worked so hard to acquire stay with you, have a great
customer experience, and continue to get value from your products. Customer retention makes
you, the occasional customer into a frequent customer. There are different ways or programs on
how to make a customer loyal. (1) By giving rewards through discounts, gifts, or special customer
treatments; (2) starting off with small rewards then offering bigger rewards when a customer
stayed longer; (3) collecting points every purchase; (4) non-monetary or discounted rewards; (5)
extended return policy; (6) gift cards or certificates; (7) loyalty cards. Through this, customers will
likely spend more money to the company and would even help in promoting the business.

Remember that in this research featured 350 Jordanian customers but the response rate was
(81.14%) percent only. The participants involved in this research had different social, educational,
and occupational backgrounds. The results show that among 12 loyalty customer programs there
are 4 loyalty program that stood out. In this research found out the balance between attainable and
desirable rewards is a challenge for most companies designing loyalty programs. One of the most
effective way to combat this is to implement a tiered system which rewards initial loyalty and
encourages more purchases followed by charge Up-front fee for VIP benefits, and then point
system, the weakest effect was for Non-monetary programs.

Starting with small rewards for being a part of the program, and then encourage the “occasional”
customers by increasing the value of the rewards as the customer moves up the loyalty ladder. This
helps solve the problem of members forgetting about their points and never redeeming them
because the time between purchase and gratification is too long. The biggest difference between
the points system and the tiered system is that customers extract short-term versus long-term value
from the loyalty program. You may find tiered programs work better for high commitment, higher
price-point businesses like airlines, hospitality businesses, or insurance companies.

For any business that provides a product or service to customers, the act of finding, targeting and
obtaining new customers is always going to be among its top priorities. I'd rather stay loyal and be
rewarded than regret aything because of being unfaithful in choosing a reliable company or brand
to avail specific products, services or goods.
RESEARCH DIGEST

MAY 9, 2019

Angeles, Anne Dominique C.

Arenas, Maria Isabel U.
Requidan, Madelyn C.
Vasquez, Yev Yaña L.

Mrs. Magdalina J. Jose