Understanding the Level of Customer Participation in Loyalty Programs And its Impact on Store Loyalty in Organised Retail Sector

Loyalty program is a popular marketing program among organised retailers to develop customer loyalty to the retailing store. In Indian retail sector, almost all the leading organised retailers like Pantaloons, Westside, Shoppers Stop, Big Bazaar, etc. have launched their loyalty programs for rewarding regular customers through a combination of monetary and non-monetary benefits. Although, the enrolment of customers in these programs has been huge, their level of participation in the programs was not clear. So, this study made an attempt to find out the level of customer participation in loyalty programs of organised retailers and to find out the impact of customer participation in loyalty programs on store loyalty. The study was conducted in Delhi/NCR region. Leading organised retailers were selected for the study. The primary data was collected from 372 respondents, who were loyalty program members of the leading organised retailers across India. SPSS 20 version software was used to analyse the data. Frequency distribution and Regression analysis were statistical tools applied in this study. The results revealed that the level of customer participation was not encouraging as a majority of the respondents didn't always participate in various activities under the loyalty programs. But, it was found that there was a significant impact of customer participation in loyalty programs on store loyalty.