Home  Journals  Economic Analysis: Theory and Practice  8(455) - 2016 August

Analyzing customer loyalty programs as a tool to develop a marketing strategy of relations under crisis: Evidence from Magnit retail chain of CJSC Tander

Vol. 15, Iss. 8, AUGUST 2016

Article PDF Version

Received: 28 March 2016

Received in revised form: 25 April 2016

Accepted: 30 May 2016

Available online: 31 August 2016

Subject Heading: BUSINESS PERFORMANCE

JEL Classification: C13, D11, E64, F13, G02, L81

Pages: 147-163

Subject The article considers customer loyalty programs as a tool for creating the marketing strategy of relations.
Objectives The aim is to review customer loyalty programs under crisis.
Methods The study rests on econometric and statistical methods to analyze the modern loyalty program of Magnit retail chain being the leader of trade in food products in Russia.
Results I analyzed the customer loyalty program as a marketing tool. Loyalty programs are aimed at increasing customer satisfaction with self-service stores and often involve the use of plastic cards. Some authors emphasize the behavioral aspect of loyalty and propose a structural model of the process of repeated selection of a store. Based on identified relationships between marketing stimuli the company, internal behavioral factors and customer loyalty, they assess the reaction of different groups of buyers to the store format change.
Conclusions The findings show that all programs have advantages and disadvantages that can significantly affect the level of customer loyalty. Loyalty programs are designed to generate consumer loyalty. Today, many loyalty programs negate the idea of emotional involvement and operate as short-term programs for sales promotion. It is crucial to enhance emotional factors of a brand and build long-term relationships with customers.

Keywords: marketing, loyalty, customer, strategy, retail trade

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