Analyzing the Impact of Customer Loyalty Programs on Business Success

Customer loyalty programs are pivotal for businesses aiming to enhance customer retention and increase sales, thereby fostering overall growth. These programs are designed to reward repeat customers, encouraging continued patronage through incentives such as discounts, rewards points, or exclusive offers. By analyzing the impact of these strategies, this paper delves into how they contribute to sustained business success by fostering a loyal customer base. Enhanced customer engagement and satisfaction are central outcomes that stem from effective loyalty programs, leading to positive word-of-mouth promotion and increased brand advocacy. Furthermore, such programs provide valuable insights into consumer behavior, allowing businesses to tailor their offerings more precisely to meet customer needs. Through case studies and empirical data, this paper evaluates the effectiveness of various loyalty program models across different industries, highlighting best practices and common pitfalls. It concludes by offering strategic recommendations for optimizing loyalty initiatives to maximize business growth.

RESEARCH PROJECT

Table of Contents
PART 1............................................................................................................................................1
1.1 Research project outline...................................................................................................1
1.2 Contributive Factors to investigation project choice........................................................2
1.3 Literature review..............................................................................................................2
1.4 Research methodology.....................................................................................................5
TASK 2............................................................................................................................................8
2.1 Resources efficiency.........................................................................................................8
2.2 Questionnaire....................................................................................................................8
2.3 Recording and collection of data......................................................................................9
TASK 3..........................................................................................................................................11
3.1 Research evaluation technique.......................................................................................11
3.2 Analysis of data..............................................................................................................11
3.3 Conclusion and recommendations..................................................................................14
TASK 4..........................................................................................................................................15
4.1 Power Point presentation................................................................................................15
REFERENCES..............................................................................................................................16

PART 1
1.1 Research project outline
Title : Assessing weather consumer loyalty and rewards schemes actually works – case study of
ASDA.
INTRODUCTION
Clients loyalty is the measure through which long term relation with the customers are
maintained which helps in providing profitability to business. It is a very important concept as if
trust is maintained than the clients feedback can be utilised for making improvements in the
business operations and their total output. Customer loyalty can be achieved if organisation
receives reward in return from the purchaser. ASDA is a British supermarket retailer
organisation which was incorporated in 1965. Following report is prepared in order to help the
cited company to understand the importance of customer loyalty and other payment schemes for
the employees (McCall and Voorhees, 2010). A survey will be conducted in order to analyse
what is the response of other on subject matter. For conducting the research different methods
will be utilised which are discussed in detail below.
Background
ASDA is a very huge company and has provided employment to more than thousand human
resource. It was started in 1965 and till now it is experiencing good growth and expansion. It
deals in various products like food items, garments recreational goods etc. Its contribution in
countries charity is also evident as every year it is doing good contribution in the development of
society (Huang and Chen, 2010). As there are many other firms also which are dealing in same
product type but due to their effective pricing strategies the cited company does not find it
difficult to increase it sales or to expand. It is very important for ASDA to have customer loyalty
so that clients feedbacks can be utilised to make improvements and therefore productivity can be
increased more. Apart from this employee reward schemes are also very much crucial as in order
to achieve the desired goals it is important that human resource working with the ASDA (Kumar,
2013).
Aim and Objectives
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Aim – To examine weather loyalty from customers is helpful or not and also to understand the
impact of employee reward schemes.
Objectives
 To discover the role of consumer loyalty programmes
 Understanding the need of reward schemes in ASDA
 To recognise the relation between incentive plans and consumer loyalty
Research Questions
 Does consumer loyalty towards company works?
 How growth of business is affected by consumer loyalty?
 How different reward schemes contributes in companies growth?
1.2 Contributive Factors to investigation project choice
Development is very important for any type of business organisation. For same it is very
crucial that information is gathered from the external and internal surroundings which can serve
as a base for growth. There are a number of areas in the cited organisation data for which is
required but to determine weather customer loyalty is helpful or not is very important. This will
help in understanding the value of true clients and also their contribution in expansion of
business can be figured out (Bagchi and Li, 2010). If the consumer loyalty is not achieved than it
may have unsupportive impact on the growth of business. Negative publicity by consumers
affects the sales of organisation to a great extent and therefore it becomes difficult to achieve
organisations goals and objectives. With this it is also necessary to understand that weather the
adopted reward schemes adds to total development of business or not so that accordingly future
decisions can be taken regarding programs. Only if it is experienced that the schemes that are
adopted by the company are helping in improving the employees morale and resulting into total
reduction in cost than only these schemes should be continued (Aaker, 2012).
On the other hand if it is analysed that after providing the human recourse various incentives
there is no change in the performance of an individual than such practice has no use to be
continued. When company gets to know the various elements on how clients consider any
company to be good and effective such points act as measure to bring improvements in the
performances. Therefore to find out the relevant data following report is prepared which will tell
the user how it customer loyalty and reward schemes help in the development of any business
type (Dorotic, Bijmolt and Verhoef, 2012).
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1.3 Literature review
As per Allaway (2011) being loyal with clients is of essential significance as it helps in
accomplishing organisation goals. At the point when organizations are fruitful in keeping up trust
with their customers more exchanges are supported and long haul connection is built up with
them. When it is guaranteed by the purchasers that items and administrations given by the
organization are of good quality than they accomplish greater interest in purchasing their items
as they realize that they will be getting high fulfilment in the wake of purchasing that brand. In
the event that it is assimilated that organization is not faithful with their customers than it will
have negative effect on its execution as once they recognise that organization is not offering
what they really guarantee or promise than it deals get decreased in the future. Writer
recommended that devotion is the prime prerequisite for building up powerful association with
customers and encountering development and improvements. In the expressions of Bell (2014)
keeping up loyalty with various shoppers likewise lessen up the cost of organization as once they
know about the items and different administrations of association they request less consideration
and help company by becoming the working representatives if required and also help themselves.
Rather than requesting client bolster benefits now and again they even help other buyer in
settling their quarries while their visit for purchasing in stores. Creator gave stress on how along
these lines a simple functioning surroundings are produced as directors don't work under the
stress. Worry of keeping up value productivity additionally get diminished through this idea as
once customers are happy with the result of refereed organization they don't switch to other
brands often which is an exceptionally positive factor for ASDA as it has many substitutes in
outside surroundings and face a good competition Bijmolt, Dorotic and Verhoef (2011). With
this there are additionally numerous different points of interest of customer responsibility
programs which are offered by Brinkmann (2014) who highlighted the benefits of same in setting
of encountering development and extension. Author says that when customers are faithful with
the organization they give a powerful criticisms and legit proposals which can be additionally
used for making changes and developments in the current items. As customers use the offerings
more on constant basis they have more knowledge about its positives and negatives which can be
used as a system for generating corrective measures to expel these imperfections. This will build
consumer loyalty and utility of same product consequently add up to yield will get raised which
will additionally climb the aggregate deals. He additionally said that shoppers which are faithful
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towards the organization go about as a brand diplomat. Aside from ad or other showcasing
mouth exposure is the best. It dislike customers share just their awful experience but rather
likewise enlighten others regarding their great experience which they have with a specific brand.
Achievement when talked about impact more deals and request in showcase which is sure move
for given endeavour.
According to the perspectives of Chen and Pearcy (2010) no individual in business work
for free or give his labour without demanding anything in return consequently uniquely not in
ASDA which is not a deliberate administration industry. Subsequently it winds up noticeably
imperative that they are given the required motivators consequently so the profitability of big
business stays insufficient. Prizes are the profits which are given to the representatives working
with an association with a goal of acquiring something consequently which can be monitory or
non monitory. Motivators can be used for spurring and moving diverse representatives to work
with their most extreme devotion as when they realize that their endeavours will be perceived
than the vibe propelled. Aside from this it additionally bring rivalry among different
representatives as all with a specific end goal to substantiate themselves better they enhance
quality and effectiveness so they get more name and notoriety in business.
Crossand et.al (2010) suggest through the system of reward scheme management also
gets to know about the capabilities of an individual. Along these lines administration can
likewise becomes more acquainted with about its qualities and shortcomings and in like manner
take remedial activities for the zones which should be enhanced or altered. Dorotic, Bijmolt and
Verhoef (2012) says that arrangement of reward giving draws in more workers towards the
business and furthermore helps in decreasing the turnover proportions as when work is
sufficiently paid for their agonies and endeavours they feel more fulfilled and likewise
contributes in development of business. Along these lines it turns into a device to accomplish
association objectives. Best level of every representative is distinguished through persuading
them which additionally help in basic leadership in regards to choice taking for examinations and
arranging advancement programs for big business.
As indicated by McNiff (2014) shopper dedication and prizes plans is an imperative
device for accomplishing association development. For any speciality unit client and
representatives both are of essential nature as profitability and beneficially depends such a great
amount on them. It must be guaranteed that faithfulness is kept up with the goal that long haul
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advantages can be seen in business and furthermore representative ought to be sufficiently paid
to complete the work in required way.
1.4 Research methodology
Its basically a deep and investigative study about any particular topic. Research is divide
in two categories one is arbitrary method (imaginary) another one is scientific method (reality
based) As along with scientific method it is classified in quantitative method and qualitative
method. Research is defined Re+search = research,as doing search again and again on some
particular topic. This study is done in very detailed form, and the method go with many ways
like surveys, questionnaire, interviews, and many more (Mackey and Gass, 2015). Data
collection must be related to the relevant topic and can be done by various methods. Research
should be clear and understanding, applicable and classified accurately (Dorotic, 2011). Some of
the steps that helps to do research are as follows:-
Research philosophy:- research basically dwells with deep and investigative study on the
particular problem, researcher go along to doing study by adopting various methods. A good
research always depicts ground level reality and facts, initially researcher focused on the problem
and conduct facts and information and also referred the old books, researches which is done by
someone else and they count as in literature review (Brinkmann, 2014).Literature review is
important stage through which you also go through the already done studies books and study the
matter and if they find something relevant they also include in research. Same with the
consumer,they read and research almost every company of that particular product and
somewhere client's started made their perception after reading about the ingredient.
Research approach:- This approach involves the hypothesis which person developed by
reading about topic. Hypothesis is basically the assumption made by the researcher and this is
person's point of view. This is important regarding the customer's loyalty through the brand or
company. Client's loyalty depends on the reputation and image of the organisation whatever they
depict in front of consumer and what services they provide to consumer if they stand on the
expectation's of the client's and provide them gratification then surely they make good point of
view (Glesne, 2015).
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Research design:- It is a detailed information criteria which consist of the facts and
purest figures and it is quite descriptive research and includes the realistic contest based or re
search on the ground level. This research done in qualitative method instead of quantitative. It try
to solve the problem with the help of present as well as past scenario through the data analysis by
using sampling methods of the populations. Its very important and basically focus on the
research questions, Research design consist of data collection and data analysis they equally
support this arrangement (Taylor, Bogdan and DeVault, 2015).
Data collection:- Its very important step in research in this stage they start collecting data
and by doing this, researcher is one more step ahead of the conclusion stage. The information can
be primary either secondary research. In primary data, the information is collect by researcher for
the first time on the other side in secondary data it is already done research by someone else and
we have to just recheck the sample behind this there is reason of some errors and mistakes, this is
not much time taking method. Consumer can adapt any of method as per his convenience
(Silverman, 2016).
Sampling:- It is a acting which is used for conducting data. The sampling method is
classified in two playing one is random sampling, in this sampling know-how consumer
randomly take sample as according to his convenience there is no stick method to do random
sampling on other hand, non random sampling in which consumer has to follow standard so
along with they have to do according to that. This is important to treat all the sample fairly and
equally so consumer can reasonably do research and bring out the actual conclusion (Flick,
2015).
Data analysis:- Whatever the data we collected by doing sampling method, next step will
be to analyses the data , identify and interpretation too. Consumer has to be compare the
resultant from the hypothesis he made initially,and eventually after comparison the client will get
to know the actuality what they used to think and what is actuality (Panneerselvam, 2014).
Validity and reliability:- It seems to be trustworthy research when the other researcher
will also use the same method and proceed with the same conclusion and it will also depict the
loyalty of clients towards the particular brand (Kopalle, 20120).
1.5 Gantt chart
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It is graphical representation of the time taken by company in presenting the different
time scale. Through this graph it can be analysed how much time was consumed by each activity
as various task require different amount of time depending upon its nature and complexity.
Procedures which are analytical in nature and require crucial decision making consumes more
time on the other hand those activities which are of less importance can be completed utilising
less time frame. Given below is the distribution of different activities which were performed to
complete the given research (Henderson, Beck and Palmatier, 2011).
Activities 1 2 3 4 5 6 7 8 9 1
0
11 12 13 14 15 16
Intimateing
investigation
Formulating
goals and
subject
matter
Coordinatin
g
formal study
Working
methodolog
y
Assembling
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Primary
data
Data
analytical
thought
process
Writing
results
Giving
recommenda
tions
Gathering
Feedbacks
from
instructor
Making
required
changes
Presenting
final report
TASK 2
2.1 Resources Match
Resources taken in use while doing the research has major effect on the effectiveness of
the investigation (Saili, Mingli and Zhichao, 2012). It is very important that the selected medium
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is capable of giving the desired results and are relevant to subject matter. As enough of
individuals time and companies products are engaged in the study, if reports results do not match
the requirement or fails to full fill companies objective than the whole investigation will go in
waste. To collect all the required information it is important factor is that all those on whom the
questionnaire is conducted gives the relevant data to the user and do not misguide him by
providing false information. With this another major need is of availability of enough time (Bose
and Rao, 2011).If it is observed that researcher do not have the required time with him to present
the report than this will promote carelessness and hence he may skip data which is of crucial
nature and therefore the end results will be less effective. Apart from this requirement of efficient
human resource will also be their as to conduct the various task of investigation their
contribution is must and it should be ensured that all the required information is provided to them
on time so that they can give the desired outcomes to the user.
2.2 Questionnaire
Name
Age
Gender (M) (F)
1. According to you does the reward schemes has their contribution in the growth of ASDA?
 Yes
 No
2. Is it beneficial to make investments in the different incentive plans?
 Yes
 No
3. Does Consumer loyalty plays an important role in development and enhancement of business?
 Agree
 Disagree
 Strongly Agree
 Strongly Disagree
4. Does the products and services of ASDA satisfies the consumer?
 Yes
 No
5. Do you think company should work more on improving products quality?
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 Yes
 No
6. Are the products of ASDA comparatively less expensive than other in same field?
 Yes
 No
7. Any suggestions for the company.
2.3 Recording and collection of data
1. According to you does the reward
schemes has their contribution in the
growth of ASDA?
Frequency Percentage
 Yes
 No
16 80%
4 20%
2. Is it beneficial to make investments in the
different incentive plans?
Frequency Percentage
 Yes
 No
14 70%
6 30%
3. Does clients loyalty plays an important
role in development and enhancement of
business?
Frequency Percentage
 Agree
 Disagree
 Strongly Agree
 Strongly Disagree
12 60%
2 10%
6 30%
0 0%
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