A retail audit on customer loyalty

In retail business Customer loyalty plays a crucial role because selling more to existing customers is easier, and cheaper, than finding and selling to new ones. Loyal customers tend to buy more and more regularly; and they will frequently recommend to others.

Present study has been undertaken on two Indian retail giants with special reference to customer loyalty. This paper aims to find out the impact of the loyalty card (Green Card for Pantaloons and First Citizen Card for Shopper Stop) and whether they are being able get any competitive advantage because of this. A descriptive research was conducted with the help of personal interview and close ended questionnaire (for customers). After collecting data from 130 respondents through questionnaire survey data were analyzed using chi-square test and Factor analysis. Based on the findings, suggestions and recommendations have been prepared for those retail giants towards further improvement.

In this scenario, in retail business Customer loyalty plays a critical role because selling more to existing customers is easier, and cheaper, than finding and selling to new ones. Loyal customers tend to buy more and more regularly; and they will frequently recommend to others. We know that "very satisfied" to "satisfied" customers sometimes switch to competitors (Fornell Claes, et.al.1996). Customer loyalty is not a response to trial offers or incentives.