The thesis will explore customer loyalty and customer loyalty programs between three different industries. Three companies have been chosen for this study – H&M, IKEA and FDB. This perspective is interesting to explore, whether companies can compose a standardized loyalty program or have to compose a differentiated loyalty program dependent on the consumers’ preferences in the industry. This thesis tests the effects of loyalty programs in the three industries and makes recommendations as to how the companies should work with these systems in the future. Customer loyalty and customer loyalty programs are in many ways fundamental to companies’ ability to increase their long term profit and retention, which are crucial for modern companies. A loyalty program allows a company to gain a competitive advantage, enhancing opportunities for success in a market. In some industries, loyalty programs have become crucial factors in remaining competitive. In this thesis the Foote, Cone & Belding model is used to analyze the differences on the loyalty programs effects and customer preferences between the three industries. The model also shows the different thought processes that the consumer goes through in deciding which product it will buy. Thorough analysis of the thesis results indicates that there is not a significant difference between consumers’ drivers and preferences between the three markets, even though consumers go through different decision making processes. Ethically, consumers state that they believe loyalty programs to be fair. It is not enough for consumers to join a loyalty program if companies want them to buy more and make them less attentive to offers from competing companies, but rather it is the feeling of loyalty that makes the difference. Finally, the thesis concludes that the companies are not promoting the loyalty programs benefits successfully and that the main driver for joining a loyalty program is the economical benefits. We also see a difference regarding the consumers’ desire for tailored offers in the different industries and will recommend what companies should do for future reference. It is important to stress’ that, our findings and recommendations are based on a sample, and the results might be different if the analysis was made through the companies’ own customer databases.
|Educations||MSc in Economics and Marketing, (Graduate Programme) Final Thesis|
|Number of pages||233|