Retail loyalty programmes: Relationships between the customer and the retailer in South Africa - an exploratory study

Abstract

Loyalty Programmes are increasing in number and complexity in South Africa. The aim of this study was to establish how members of consumer loyalty programmes in the supermarket environment felt about the benefits that were offered by various programmes. It examined the possibility of the formation of relationships towards the retailer including customer loyalty. The qualitative study was operationalised through a number of focus groups directed at programme members. Information gained from this initial study contributed towards the construction of a quantitative questionnaire to be aimed at a larger audience on a national scale. The quantitative research found that participants exhibited different feelings towards the various forms of loyalty programme. Those offering tangible and immediate rewards were favoured, although this did not mean that other options were disregarded. Results should also be of considerable interest to both academics and retailers who are considering offering a loyalty programme.