Foreign Studies

A study from the Ansal University, Gurugram entitled “Is Loyalty Program As A
Marketing Tool Effective?” convey that loyalty programs are everywhere, it is commonly
used in customer relationship management. Modern businesses requires manager to
strive for innovative strategies to obtain and retain customers in any product market
field. In acquiring new customers, business organization have offered loyalty
programmes to retain and reward existing customers and maintain a good relationship.
As an strategy, business organizations established an effective loyalty or rewards
program to keep customers coming back. It is said that loyal customers are worth
striving for. Loyal customers spread positive word-of-mouth that helps the business to
reduce defection rates and increase the purchase frequency. This study tried to
determine whether loyalty cards provide by stores affect customer’s loyalty. The aim of
this research is to intensify the understanding about the effectiveness of loyalty
programs.