Understanding How Loyalty Programs Impact Customer Satisfaction in Digital Retail

What is it about?

This study is about those reward programs you might join when you shop. We want to find out why people like or don't like these programs when they shop online. We did a survey in Turkey and found that people feel more satisfied with these programs when they get good things from them, like discounts, fun experiences, or feeling special. We also found that when these programs personalize the shopping experience for you, it makes you happier. Worries about privacy also matter but not as much. Finally, if people are happy with these programs, they're more likely to keep shopping with the same retailer.

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Photo by Anna Dziubinska on Unsplash

Photo by Anna Dziubinska on Unsplash

Why is it important?

This study is important for several reasons: Digital Transformation: With the growing shift to online shopping, it's vital to know how loyalty programs are perceived in the digital retail environment. This study addresses this modern context, which is increasingly relevant in today's shopping landscape. Enhancing Customer Satisfaction: Discovering that factors like getting discounts, having a personalized shopping experience, and feeling special matter to customers can help retailers tailor their loyalty programs to better meet these expectations, ultimately increasing customer satisfaction. Balancing Privacy Concerns: By finding that privacy concerns have a significant but weak influence on satisfaction, the study highlights the need for retailers to address privacy issues in loyalty programs while prioritizing other aspects that drive customer happiness. Boosting Loyalty: The study confirms that customer satisfaction leads to attitudinal loyalty, which means that satisfied customers are more likely to keep shopping with the same store. This insight is valuable for retailers aiming to retain their customer base.