Home  Journals  Financial Analytics: Science and Experience  4(286) - 2016 January

Customer loyalty as a sales efficiency growth driver

Vol. 9, Iss. 4, JANUARY 2016

Article PDF Version

Received: 27 November 2015

Received in revised form: 25 December 2015

Accepted: 13 January 2016

Available online: 27 January 2016

Subject Heading: FINANCIAL INSTRUMENTS

JEL Classification: 

Pages: 38-52

Importance Loyalty program implies an array of marketing activities to boost repeat sales to the existing clientele in the future, sell additional goods and services, promote corporate ideas and values, and other types of potentially profitable behavior. It is very interesting to study how customer loyalty may be managed, since these are loyalty programs that constitute the most effective ways of bringing sales upwards.
     Objectives The research examines customer loyalty management methods. We extract the substance of loyalty programs, analyze their history, and find existing tools, criteria and possible options of loyalty programs.
     Methods We analyzed the management of customer loyalty as a method to boost sales. The research is based on sociological survey data, information and statistical data from Russian and foreign sources.
     Results The article reviews key concepts, characteristics and components of loyalty programs, and narrates their history. The research presents sociological surveys on discount cards and loyalty buttons, and provides insight into the main tools, criteria and types of loyalty programs.
     Conclusions and Relevance We conclude that discounts and bonuses are no longer attractive for customers. Sellers should better pay attention to more customized propositions in line with individual shopping record and customer’s behavior. Customer loyalty buttons appear as an effective and promising tool, since they can be used to manage customers’ emotional loyalty, satisfaction and quality of service.

Keywords: loyalty programs, clients, purchase, discount cards

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