What type of loyalty programs is most effective in a FMCG online business environment? : a case studies

Abstract

Particularly in today’s online driven FMCG markets, it is increasingly challenging to develop loyal customers. Companies need to deliver something extra in for instance the form of a loyalty program. The question than arises: What type of loyalty program is most effective in a FMCG online business environment. This has been researched with the help of the case company and a scenario-based survey in which four types of loyalty programs have been tested. This has been done with the help of the customers of the case company in order to add empirical data to the already existing theoretical knowledge of loyalty programs. This research however showed contrasts with existing literature. Namely none of the tested loyalty program types had any influence on customer retention as well as generating new customers showing that in this particular case a loyalty program is not effective at all. Some interesting other findings are the positive influence of the price on acquiring new customers and the positive of the influence of the brand on customer retention. Moreover, the research shows that this particular type of customer wants to be treated but not with a loyalty program. So, companies should investigate new ways in which they can satisfy their loyal customers and reward them for being loyal.