Abstract
The aim of this paper is to define the significance of different indicators that affect the expected benefit of customers when using loyalty cards in the purchasing process in the retail sector. As the most important indicators that affect expectations while using loyalty cards, the following was tested: price discounts, more efficient service and rewards, personalized communication, payment option, better information, status symbols and additional benefits. The research was conducted on a sample of 552 holders of loyalty cards of the largest retail chains in selected Central Europe (CE) and South East Europe (SEE) countries. The values of indicators for different categories of customers and different markets can be determined based on the obtained results and conducted tests. The determined values of the indicators are the basis for the formation of a regression model that will serve the chain managers to optimize the loyalty programs in relation to the identified customer expectations.
Highlights
Studies (Cho, 2019; Filipe, Henriques Marques, & Fátima Salgueiro, 2017; Alina Elena, 2016; Kellgren, Moradi, & Romppanen, 2007) show that development and management of longterm relationships of loyalty with customers are founded on placing a customer at the centre of business through well-planned, personalized and customized messages, which are available to them through loyalty cards
As it can be seen, the respondents believe that their expected benefit is mostly affected by price discounts (M = 3.69), the level of information (M = 3.55), additional benefits (M = 3.27) and efficiency of service and rewards (M = 3.24), while somehow less expectation is associated with the personalized communication (M = 2.94), status symbols (M = 2.34) and payment by customer card (M = 2.38)
The results show that respondents of different gender, levels of education, age, monthly income and place of residence do not differ in the level of benefits they expect from using loyalty cards in terms of Price discounts, More efficient service and rewards, Personalized communication, Payment option, Better information, Status symbols and Additional benefits
Summary
Studies (Cho, 2019; Filipe, Henriques Marques, & Fátima Salgueiro, 2017; Alina Elena, 2016; Kellgren, Moradi, & Romppanen, 2007) show that development and management of longterm relationships of loyalty with customers are founded on placing a customer at the centre of business through well-planned, personalized and customized messages, which are available to them through loyalty cards. According to Kellgren et al (2007), building trust relationships with customers based on loyalty cards is a formalized connection of customers who meet the requirements set by the seller. Customers make an effort to become “members” of the club of loyalty card users and in return they receive benefits that are only available to club members (Rao & Kotian, 2018; Lovreta, Končar, & Petković, 2013). Org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. J. Končar et al Analysis of key indicators that affect the expected benefit of customers when
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