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Loyalty cards as a form of sales promotion for retail chains and their impact on customers

Author

Listed:
  • Eva Kalinová

    (University of Žilina, Faculty of Operation and Economics of Transport and Communications, Department of Economics)

  • Tereza Mílová

    (Institute of Technology and Business in České Budějovice, School of Expertness and Valuation)

Abstract

This article deals with a comprehensive of the loyalty program as such, in terms of its functionality and impact on retail customers. The aim of the work is to evaluate the benefits of loyalty cards, customer motivation to purchase and the impact on sales. Furthermore, to assess whether the loyalty program pays off for retailers and which of them offer the most advantageous benefits. With the help of data analysis resulting from a questionnaire survey, the influence of loyalty cards on customers and their regularity in use is determined. Most customers own a loyalty card only because of a possible benefit or reward. However, their frequency of use is mostly exceptional or up to once a week. The comparison method used compares selected retailers to determine the best offer. Using this method, we achieved results show that the retail store Kaufland offers the largest number of benefits in its loyalty program. Together with the Lidl retail store, it offers a large number of benefits, but Lidl's offer seems to be the most advantageous for customers. The SWOT analysis provided results on strengths and weaknesses, including opportunities and threats to retail as such and its loyalty programs. The resulting proposal for retail is the defensive strategy of Terno supermarket and the escape strategy for their loyalty program. The benefit of the work are the results and evaluation of useful loyalty programs for customers, which are based on data. Also, the clarification of the overall benefits of shopping at certain retail stores and the convenience of shopping.

Suggested Citation

  • Eva Kalinová & Tereza Mílová, 2022. "Loyalty cards as a form of sales promotion for retail chains and their impact on customers," Littera Scripta, VSTE, vol. 15(1), pages 1-18, March.
    • Handle: RePEc:rsg:littra:2022-001
    DOI: 10.36708/LS.2022.I01.001
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    References listed on IDEAS

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    1. David J Hand & Niall M Adams, 2014. "Selection bias in credit scorecard evaluation," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 65(3), pages 408-415, March.
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