Effectiveness of Customer Loyalty Programs on SMEs in Morocco

Abstract

A worldwide movement is occurring toward relationship marketing, and businesses are putting these techniques into practice in order to build trusting connections with their clients. Most merchants have made a commitment to maintaining customer loyalty and establishing a long-lasting and favourable connection with consumers who are encouraged to often return for more sales due to the growing significance and usefulness that are associated to loyalty programs. This specific research examines the efficacy of consumer loyalty programs in SMEs located in Morocco. An interview and survey were undertaken to gather information from the two samples in order to fulfil the study’s goal. A total of (32) sales and marketing staff members working in a variety of SMEs based in Morocco were interviewed via interviews conducted with the use of an interview guide. A total of (56) questionnaires were delivered at random to consumers who patronize different SMEs located in Morocco. The results unmistakably demonstrate that there is substantial proof of the impact of loyalty programs on sales and client retention. Sales revenue statistics showed a significant rise in income during the loyalty programs, which represents an increase in sales, demonstrating the favourable impact of loyalty programs on the sales of different SMEs. Additionally, loyalty programs had a substantial impact on client retention, as seen by the customer base’s noticeable expansion; some of these new consumers stayed loyal and were subsequently kept. This study’s contribution sheds light on the efficacy of various loyalty program concepts and, more significantly, highlights program design components that may be used to influence consumer choices and develop the best customer loyalty program.