Loyalty programs

Loyalty programs

Loyalty programs have gained traction in the business world especially with the growing popularity of bid data. The amount of data that is captured in a royalty card can be used by businesses to revamp their marketing models. In fact, research has shown that businesses can use loyalty programs not only to gain new customers but also for loyalty and retention.

Annotated Bibliography

Magatef, S. G., & Tomalieh, E. F. (2015). The impact of customer loyalty programs on customer retention. International Journal of Business and Social Science, 6(8), 78-93.

Magatef and Tomaieh (2015) researched Jordanian customers to determine the impact of loyalty programs on customer loyalty and retention. The findings of their study reveal that there is a positive relationship between customer retention and loyalty programs where customers are likely to stick to a brand that has loyalty programs. However, their research did not distinguish between customers of large business owners and those of small business owners. Moreover, the authors approached their study from the perspective of customers. Consequently, there is a gap of knowledge on the impact of loyalty programs on customer retention from the perspective of business owners specifically small business owners.

Donnelly, C., Simmons, G., Armstrong, G., & Fearne, A. (2015). Digital loyalty card ‘big data’ and small business marketing: Formal versus informal or complementary? International Small Business Journal, 33(4), 422-442.

In this article, the authors focus on the impact of loyalty card programs on marketing. Unlike the previous article, the authors in the current article focus on small and medium enterprises. The findings of their study indicate that loyalty card programs have an impact on the marketing practice of small business. The authors do not also focus on customer retention in their articles.

The article addresses the impact of customer loyalty programs on satisfaction and customer loyalty for high end and low-end fashion retailers in the UK. The authors find a positive relationship between loyalty programs and customer loyalty. The authors, however, only focus on the UK and the results of their study may be hard to generalize. Consequently, the authors recommend that further research be carried out on the topic in other countries.

The information provided in these articles is nevertheless important in setting the context for my research project and specifically will be used in the background for the problem as well as in the literature review section of my final research paper.