The Impact of Loyalty Schemes on Customer Satisfaction: A Costa Study

This essay examines the effectiveness of loyalty schemes in improving customer satisfaction, focusing on Costa Coffee. It identifies the loyalty schemes used by Costa, assesses their influence on customer satisfaction, and explores the benefits Costa gains from these schemes. The research rationale highlights how loyalty schemes help meet customer needs and wants, leading to a competitive advantage. The literature review, based on keywords like 'customer satisfaction,' 'reward and benefits,' and 'consumer purchase decision,' discusses loyalty schemes such as discounts, reward programs, referrals, and feedback mechanisms. These schemes influence customer satisfaction by offering budget-friendly products and services, attracting a large customer base, and encouraging repeat business. Ultimately, implementing loyalty schemes improves profitability, increases customer base, enhances productivity, reduces customer turnover, and fosters brand loyalty.

The impact of loyalty schemes on
customer satisfaction” A study of costa

Table of Contents
• Introduction
• Research aims and objectives
• Rational
• Literature review
• Conclusion
• References

INTRODUCTION
• Loyalty schemes plays an important role in improving the satisfaction
level of customer as it helps in enhancing the engagement level of people
towards the brand.
• By organising loyalty programs, company can retain customer in order to
gain competitive advantage in market.

Research Aim
To examine the effectiveness of loyalty schemes for improving the
satisfaction level of customers” A study of costa

Research Objectives
• To identify the loyalty schemes used by costa
• To identify the influence of loyalty schemes for improving the satisfaction
level of customers in Costa.
• To examine the benefits Costa can gain through enhancing customer
satisfaction through loyalty schemes

Research Rationale
• The rationale behind conducting this research is to identify the impact of loyalty
schemes on customer satisfaction.
• Through this research, the researcher will identify the ways through which
company satisfy the need and wants of their customer.
• The loyalty schemes helps in improving the satisfaction level of customers due
to which organisation can gain competitive advantage in market.

Literature Search
The Literature is conducted on the food and beverage company that implements
loyalty schemes in order to attract more and more customers towards the brand.
The keywords which are used in this literature review are:
• Customer satisfaction
• Reward and benefits
• Consumer purchase decison

LITERATURE REVIEW
(What are the loyalty schemes which are used by Costa?)
• As per the viewpoint of Arora and Narula (2018), there are various loyalty
schemes which are used by Costa in order to enhance the satisfaction level of
customer such as offering discounts, promoting reward programs, encouraging
referral, asking for feedback and rewarding customer.

How loyalty schemes influence the customer
satisfaction in Costa?
• According to Shaon and Rahman (2015), loyalty schemes helps in
influencing the customer satisfaction by offering them products and
services according to their budget.
• Through loyalty schemes, company can attract large number of people and
also ensure that they come back for more.

What are the benefits which are gained by
company through implementing loyalty schemes
for improving customer satisfaction?
As per the opinion of Enaworu, Adegboye and Wara (2018),there are various
benefits which can be gained by company through implementing loyalty
schemes such as it helps in improving the profitability of business, increases
customer base, enhance productivity, reduce the turnover rate of customers
and also gain more loyal consumers towards the brand.

References
• Shaon, S. K .I. and Rahman, H., 2015. A theoretical review of CRM effects on customer satisfaction and
loyalty. Central European Business Review, 4(1), p.23.
• Arora, P. and Narula, S., 2018. Linkages between service quality, customer satisfaction and customer
loyalty: A literature review. IUP Journal of Marketing Management, 17(4).
• Enaworu, E., Adegboye, F. B. and Wara, H. U., 2018. Competitiveness in banking industry: a study of
employee satisfaction, customer satisfaction and productivity in service quality. In competitiveness in
emerging markets (pp. 373-390). Springer, Cham.