Ahmed faraz Research Project ppts.pptxAhmed faraz Research Project ppts.pptx

Ahmed faraz Research Project ppts.pptxAhmed faraz Research Project ppts.pptx

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  Lahore School of Innovation& Technology Affiliated with Research Project Loyalty Program and Customer Retention Presented By Ahmed Faraz (BSF2107677)
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  Chapter # 1Introduction •Customer loyalty is a primary marketing goal. •Gaining and retaining loyal customers has become essential for businesses. •Loyalty programs are widely used to enhance customer loyalty. •These programs are planned promotional efforts designed to reward purchase behavior. •The main objective of loyalty programs is to encourage repeat purchases. •By offering incentives, businesses aim to increase customer retention and repeat patronage. •Effectiveness of loyalty programs is debated. •Despite their popularity, there is skepticism about how effective they truly are.
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  1.1 Problem Statement •StudyFocus: •The study examines the impact of loyalty programs on consumer purchasing behavior, with a focus on customer satisfaction and customer retention in the retail sector. •Purpose of Loyalty Programs: •Loyalty programs aim to increase customer retention by delivering higher satisfaction and perceived value to selected customers. •Criticism of Loyalty Programs: •Critics argue that loyalty programs often fail to deliver a competitive value proposition and mainly increase marketing costs without yielding meaningful returns.
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  1.2 Research Questions •What is the impact of loyalty programs on consumer retention in retail industry? • How do different types of loyalty programs (e.g., points-based, tiered, personalized) influence customer retention over time? • To what extent do digital loyalty platforms (e.g., mobile apps) enhance customer retention compared to traditional programs?
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  1.3 Justification ofthe Study •Study Significance: •The study contributes to a deeper understanding of how loyalty programs impact consumer retention in a competitive and digitally driven marketplace. •Research Gap Identified: •Although prior research highlights general benefits of loyalty programs, there's a lack of insight into the long-term effects of specific features like: •Personalization •Gamification •Mobile accessibility •Theoretical Contribution: •The study extends existing customer loyalty models by integrating often-overlooked emotional and behavioral dimensions of loyalty.
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  Chapter # 2Literature Review • Types of loyalty program • Point Systems • Tier System • Charge an Upfront Fee for VIP Benefits • Non-Monetary Programs around Your Customer's Value • Customer Retention • Loyalty programs and customer retention strategies are closely related but distinct concepts in business. A loyalty program is a specific, often rewards-based system designed to encourage repeat purchases by offering incentives such as points, discounts, or exclusive perks. It focuses primarily on transactional engagement, aiming to create habitual buying behavior through tangible benefits. In contrast, customer retention encompasses a broader range of strategies aimed at building long-term relationships and keeping existing customers satisfied and loyal. Retention efforts may include excellent customer service, personalized communication, effective onboarding, and consistent follow-up. While loyalty programs can support customer retention, retention goes beyond rewards to foster emotional connection, trust, and overall satisfaction. In essence, loyalty programs are one tool within a larger customer retention strategy. When used together rewarding repeat purchases while also delivering value and positive experiences businesses can strengthen customer loyalty and increase lifetime value more effectively.
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  Theoretical Framework &Hypotheses Development Point-based loyalty programs Upfront fee for VIP benefits Tier system reward programs Non-monetary Customer Retention IV DV
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  Research Hypotheses • H1:There is a significant relationship between point-based loyalty programs and customer retention • H2: There is a significant relationship between tier system reward programs and customer retention • H3: There is a significant impact of charge an upfront fee for VIP benefits on customer retention • H4: There is a significant impact of non-monetary programs on customer retention
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  Chapter # 3Research Methodology SPSS software was used to examine the data. After summarizing participant responses and variable distributions using descriptive statistics, the study looked at the direction and strength of the associations between the variables using multiple regression and correlation tests. Cronbach's alpha was used in a reliability analysis to assess the questionnaire's internal consistency. An acceptable Cronbach's alpha value was one that was more than 0.70. Finally, using information from the [insert number] completed surveys, a regression model was created to forecast the linear relationship between the four independent factors and the one dependent variable.
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  Chapter # 4Data Analysis and Results Hypothesis Testing Model Unstandardized Coefficients Standardiz ed Coefficients t Sig. B Std. Error Beta 1 (Constant) -.011 .280 -.03 8 .970 Point Based Loyalty Program -.031 .134 -.041 -.23 5 .818 Tier System Reward Program .611 .171 .665 3.57 5 .003 Up front Fee for VIP Benefits .383 .113 .429 3.37 9 .005 Non Monetary Loyalty Programs .007 .112 .008 .065 .949 a. Dependent Variable: CustomerRetention
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  Chapter # 5Conclusion • This study demonstrates that loyalty programs are positively associated with customer retention, but not all types are equally effective. While point-based and non-monetary programs show positive relationships with retention, it is the Tier System Reward Programs and Upfront Fee for VIP Benefits that significantly drive retention when analyzed collectively. • Businesses aiming to improve customer retention should prioritize these two strategies: • Tiered reward systems, which incentivize long-term engagement and reward loyal customers with increasing benefits. • Paid VIP programs, which can build a sense of exclusivity and commitment among customers.