CRAVING LOYALTY: EXAMINING THE INFLUENCE OF LOYALTY PROGRAMS ON CUSTOMER RETENTION IN SOUTH AFRICA’S FAST-FOOD LANDSCAPE

Abstract

This study investigates the dynamics of customer loyalty within South African fast-food restaurants, focusing on the influence of loyalty programs on customer retention. The background highlights the rapid growth of the South African fast-food industry and the need for a nuanced understanding of customer behavior in this context. Employing a quantitative methods approach employed a cross-sectional design; the methodology includes a comprehensive situational analysis and addresses three research questions: customer motivations for loyalty program participation, factors beyond loyalty programs affecting retention, and the impact of existing loyalty programs on retention. Findings reveal that emotional connections, trustworthiness, and perceived value are key motivators for program participation. Beyond loyalty initiatives, service quality, menu variety, and overall customer experience significantly impact retention. Loyalty program metrics, including participation rates and reward perceived value, play a crucial role in customer loyalty. The study concludes that businesses should tailor loyalty programs to local preferences, adopt a holistic approach to customer retention, and optimize program metrics. The practical implications emphasize the need for clear communication and cultural sensitivity. This research contributes to the academic literature by addressing gaps specific to the South African context and provides actionable insights for businesses aiming to enhance customer loyalty in this dynamic and competitive market. Article visualizations: