LOYALTY PROGRAMS SUCCESS ON SOCIAL MEDIA- EXPERIENCE OF THE REPUBLIC OF MACEDONIA
Journal Title: Knowledge International Journal - Year 2018, Vol 26, Issue 1
Abstract
Research shows that monetary effects are not the only driver for customer loyalty programs and that improved user experience provides more long-term benefits. Loyalty programs mean value added to companies in terms of increasing sales and greater brand recognition. On a global level, although most companies have loyalty programs, the number of clients who are actively participating in them continues to fall within only about 50%, indicating that there is still something missing in most programs. World experiences show that successful loyalty programs actually bring significant value to companies and are a critical factor for growth. The Loyalty Performance Score measure was designed and it has been shown that the higher value of this score is in direct correlation with the financial effects of companies, especially in the sectors of air transport, retail sales, hotels, restaurants, rent- a-car industry and others. Loyalty programs that have the best performance show the highest success in changing consumer behavior and have the brands that are most preferred by customers. In the literature, and based on extensive research, four factors have been identified that are significant in how successful loyalty programs are. The first factor is - adjust the benefits to your loyalty program and to the "mind" and "heart" of consumers. It is no surprise that consumers say they care most about the prize money. However, offering a basic "earn-and-burn" mechanism is not enough today on the market. Customers take care to feel special and recognizable. The second success factor is addressing all clusters of clients from the so-called. a funnel of loyalty. All clients fall into one of the four levels along the funnel of loyalty, and programs with the highest performance fully cover each level, from awareness of the program and from membership to active engagement and edited behavior. The third factor is - offer customer rewards today and tomorrow. The key point is that customers want access to many types of benefits. They want to feel like a program works for them in the short term, and also expect benefits in the long run. Fourth, loyalty programs should be easy to understand and use. In their efforts to improve loyalty programs, companies add innovative new features, but too many customer-oriented novelties, especially suddenly, can be confusing. Companies need to strike a balance by maintaining loyalty programs that are relevant to their customers' needs and be easy to use. Our research covers the loyalty programs and their impact on social media. Their approach and experience are researched, the four determinants for the success of loyalty programs are analysed and ultimately recommendations for level improvement are proposed.
Authors and Affiliations
Dimitar Jovevski, Kalina Trenevska Blagoeva
Keywords
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