The consumers' predisposition towards enrolling for retail loyalty cards: the Indian retail story

Relationship marketing has developed from focusing on retaining customers. The traditional view of marketing focused on 'single, discrete transactions' (McIlroy and Barnett, 2000). The important aspect of relationship marketing is the evolution of strategies that help an organisation create loyal customers. The idea is to develop cost-effective marketing strategies which link the organisation to its customers. By using the experiences of customers, companies can devise programmes which give greater value and thrust to relationship marketing (Morris et al., 1999). Organisations continuously try to improve their product offerings so that they are able to attract customers by providing better quality. 'The key to the successful adoption of relationship marketing lies in the building of client loyalty in dynamic business environments' (Morris et al., 1999). The paper is based upon primary research conducted on the impact of loyalty programmes in retail on consumers' purchase behaviour. It studies the willingness of customers to enrol for loyalty cards and schemes in retail in India. As retail is in the growth stage in the country, the willingness of customers towards loyalty schemes are mixed. As the market matures in loyalty programmes, trends that are similar to those of developed countries would be visible in the Indian retail market.