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PURPOSE
This research aims at studying the dynamics and mechanism of the marketing concept called loyalty and how it is integrated in the marketing objective of a brand to maintain a strong relationship among the customers by allowing customers to customize the loyalty program and, examine if the retailers can be monetarily benefitted by commoditizing it. The research will aim to study the determinants of loyalty and customer relationship framework and how each variant will influence customers choose a loyalty program from a retailer against the currently existing loyalty programs that is used by most of the retailers to retain customers. The research aims at providing a model of how this can implement by the retailers.
RESEARCH METHODOLOGY
A non-probability purposive sampling technique was employed to conduct survey through in-person questionnaire distribution method among 75 respondents who have shopped once at any online retail store. A mono quantitative method was adopted to conduct this research. The study of a phenomenon at a time. This is because the research undertaken is time bound. Cross sectional often employs the survey strategy.
FINDINGS
The findings of the research indicate that the traditional loyalty programs are fading out to achieve target of retaining loyal customers. Customers believe that they need more hold on what they get back from the loyalty program which can be achieved by allowing them to personalize loyalty programs. Most of Loyalty programs do influence the decision-
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making process of the customer about the purchase with a retailer, when a value-based loyalty program is offered by a retailer, customers are more likely to make repeat purchases with that retailer. By offering such loyalty programs, brands can induce customers to make purchase more often than regular which also ensures customers sticking to one brand to redeem points that have been acquired for the previous purchase. This can be made effective by acquiring data about behaviors and shopping patterns of the customer which helps build effective loyalty program model. Most of the respondents prefer customizable reward points over traditional loyalty that are preset by the retailers.
ORIGINALITY/VALUE
The research adds to the previous research on the theory of customer loyalty and how it can be implemented effectively to retain existing customer base with respect to Irish online retail business and proposes that by personalizing loyalty programs can monetarily benefit the retailers.
