The role of positive word of mouth on the success of convenience store loyalty programs

Abstract

Customer loyalty programs are designed to create, develop, and preserve customer loyalty. The cost benefits, cash back, rebate schemes, and discounts encourage customers to purchase products that they might not otherwise buy. This study examines how far customer satisfaction with customer loyalty programs effects the spread of 'positive word of mouth' and how that impacts business at convenience stores. Numerous consumer shopping behaviours impact the customer loyalty programs that are developed by convenience stores. These include frequency of trips to the store, distance that is travelled, price sensitivity, commitment, and word of mouth of the store's customers. Potential customers actively seek information from other customers. Positive customer feedback for a product or retail store starts by positive word of mouth transferred by a customer to close family members and friends. Any positive, or negative, feedback runs throughout the specific community. Positive word of mouth is the only customer relationship marketing tool that requires no financial investment to attract new customers or retain existing ones.