Authors : Bauat, Jhosalyn V.; Esbieto, Mark Genesis D.; Salac, Mari-Len Q.; Agustin, Noel B.

Volume/Issue : Volume 10 - 2025, Issue 5 - May

Google Scholar : https://tinyurl.com/5n8zytuu

DOI : https://doi.org/10.38124/ijisrt/25may611

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This study explores the effectiveness of the loyalty program implemented by Megasaver Cabanatuan City in strengthening customer retention. It aimed to determine how the program influences customer satisfaction, encourages repeat purchases, enhances perceived value, and builds brand loyalty. The research also sought to identify the factors that influence customer retention, including the types of rewards offered, the simplicity of earning and redeeming points, the effectiveness of communication strategies, and the level of customer trust in the brand. A quantitative method was used, involving a researcher-made questionnaire administered to 250 active loyalty program members. The data were analyzed using frequency, percentage, weighted mean, and correlation analysis. Findings revealed that the loyalty program is generally effective, especially in influencing purchase decisions and satisfaction. However, it also showed that communication strategies and the reward redemption process need improvement. Based on these insights, the researchers proposed a marketing plan focused on improving customer engagement, reward relevance, and the overall ease of using the program. The results confirm that customer loyalty programs, when properly managed and improved based on user feedback, can significantly support long-term customer relationships and business success.

Keywords : Loyalty Program, Customer Retention, Satisfaction, Rewards, Megasaver, Marketing Plan.

References :

1. Albrecht, C., & Bradford, K. (2021). Loyalty programs and customer retention: A               review of the         literature. Journal of Marketing Management, 12(2), 123-141. https://www.jcsdcb.com/index.php/JCSDCB/article/view/141/154
2. Ali, S. (2018). Impact Of Consumer Relationship Management On Consumer        Satisfaction,         Loyalty Programs And Customer Retention In Bankikng Sector Of     Pakistan. Arabian               Journal of Business and Management Review (Oman    Chapter), 7(2), 9-21. https://search.proquest.com/openview/a6f3fc599af564ff4d524cb14f498cfc/1.pdf?  Pq origsite=gscholar&cbl=1606373
3. Bendapudi, N., & Berry, L. L. (2019). Customers' motivations for maintaining     relationships         with service providers. Journal of Retailing, 73(1), 15-37.    https://www.sciencedirect.com/science/article/pii/S0022435997900130
4. Blazevic, V., Lievens, A., & Wierenga, B. (2016). Increasing the perceived personal            relevance of loyalty program benefits: The impact of tailored offers on store visits.     J. Mark, 80(3),      35-54. https://www.emerald.com/insight/content/doi/10.1108/09590551311306255
5. Bridges, E. (2018). Hedonic and utilitarian shopping goals: a decade later. Journal of          Global Scholars of Marketing Science, 28(3), 282-290.                       https://www.tandfonline.com/doi/abs/10.1080/21639159.2018.1439398
6. Chaudhuri, A., & Holbrook, M. B. (2021). The chain of effects from brand trust and          brand     affect to brand performance: The role of brand loyalty. Journal of                 Marketing, 65(2), 81-         93. https://business.columbia.edu/sites/default/files-efs/pubfiles/593/The_Chain_of_Effects.pdf
7. Devi, B., Devi, R., Pradhan, S., Giri, D., Lepcha, N., & Basnet, S. (2022).                APPLICATION OF CORRELATIONAL RESEARCH DESIGN IN NURSING AND MEDICAL RESEARCH. Journal of Xi'an Shiyou University, Natural        Sciences Edition. https://www.researchgate.net/profile/Barkha-Devi-   2/publication/368958213_APPLICATION_OF_CORRELATIONAL_RESEARC   H_DESIGN_IN_NURSING_AND_MEDICAL_RESEARCH/links/6401a0330cf                1030a566a0022/APPLICATION-OF-CORRELATIONAL-RESEARCH-     DESIGN-IN-NURSING-AND-MEDICAL-RESEARCH.pdf
8. Dorotic, M., Verhoef, P. C., Fok, D., & Bijmolt, T. H. A. (2015). Do loyalty programs         really      enhance behavioral loyalty? International Journal of Research in                 Marketing, 28(4), 471–      482.    https://www.sciencedirect.com/science/article/abs/pii/S0167811619300436
9. Dube, J-P., Hitsch, G. J., & Chintagunta, P. K. (2021). Tipping and customer loyalty           in a two-sided market: The case of loyalty programs. Marketing Science, 29(5),    783-796. https://www.jp-dube.com/research/papers/216full.pdf
10. Evans, J., Farahani, R., & Haskins, M. (2018). The effects of loyalty programs on              customer satisfaction, trust, and loyalty towards high-end hotels. J. Hosp. Market.         Manag, 27(5),      532-552. https://doi.nrct.go.th/admin/doc/doc_629525.pdf
    Fader, P. S., & Hardie, B. G. (2009). Customer-base analysis in a world of databases.         Marketing Science, 28(5), 700-723. https://faculty.wharton.upenn.edu/wp-                             content/uploads/2012/04/Fader_hardie_jim_09.pdf
11. Fook, A. C. W., & Dastane, O. (2021). Effectiveness of loyalty programs in customer          retention: a multiple mediation analysis. Jindal Journal of Business Research,                10(1), 7-32. https://journals.sagepub.com/doi/abs/10.1177/22786821211000182
12. Fritsch, M., & Changoluisa, J. (2017). New business formation and the productivity of                      manufacturing incumbents: Effects and mechanisms. Journal of Business                 Venturing,             32(3), 237-259.    https://www.sciencedirect.com/science/article/pii/S0883902617300551
13. Gensler, S., Hinz, O., & Skiera, B. (2018). Does loyalty really pay off? Loyalty    program types      and the relationship between loyalty program membership and       customer loyalty. J. Acad. Mark. Sci, 46(4), 672-690.    https://sloanreview.mit.edu/x/3846
14. Gentile, C., Spiller, N., & Noci, G. (2007). How to sustain the customer experience: An                       overview of experience components that co-create value with the customer.      European management journal, 25(5), 395-410.            https://www.sciencedirect.com/science/article/pii/S0263237307000886
15. Henderson, C. M., Beck, J. T., & Palmatier, R. W. (2011). Review of the theoretical           underpinnings of loyalty programs. Journal of Consumer Psychology, 21(3), 256–   276.https://www.researchgate.net/publication/228353676_Review_of_the_Theore           tical_Under   pinnings_of_Loyalty_Programs
16. Hollenbeck, B., & Taylor, W. (2021). Leveraging loyalty programs using competitor-          based     targeting. Quantitative Marketing and Economics, 19(3), 417–455.     https://ideas.repec.org/a/kap/qmktec/v19y2021i3d10.1007_s11129-021-09237-   y.html
17. Huang, P. L., Lee, B. C., & Chen, C. C. (2019). The influence of service quality on               customer satisfaction and loyalty in B2B technology service industry. Total             Quality Management          & Business Excellence, 30(13-14), 1449-1465.               https://www.tandfonline.com/doi/abs/10.1080/14783363.2017.1372184
18. Jallow, H., & Dastane, D. O. (2016). Effect of sales promotion schemes on purchase           quantity: A           study of Malaysian consumers. Management & Marketing, 14(2).                                 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2877832
19. Kamau, L. W. (2017). Effect of loyalty programs on customer retention: A case of              Nakumatt Supermarkets Kenya (Doctoral dissertation, United States International          University-Africa).    https://journals.sagepub.com/doi/10.1177/22786821211000182#body-ref-bibr52-           22786821211000182-1
20. Khalil, S. M., Ullah, O. B. A. I. D., & KHALIL, D. S. H. (2018). The effect of        customer loyalty programs on customer retention in Pakistan. Journal of Business          & Tourism, 4(2), 211-225. https://jbt.org.pk/index.php/jbt/article/view/173
21. Kivetz, R., & Simonson, I. (2019). Earning the right to indulge: Effort as a determinant       of customer preferences toward frequency programs. Journal of Marketing      Research, 39(2), 155-170. https://psycnet.apa.org/record/2002-01377-001
22. Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.     https://www.scirp.org/reference/referencespapers?referenceid=3155681
23. Kumar, V., & Shah, D. (2015). Expanding the role of marketing: From customer equity                      to            market capitalization. Journal of Marketing, 73(6), 119–136.                https://www.researchgate.net/publication/240296261_Expanding_the_Role_of_M             arketing_From_Customer_Equity_to_Market_Capitalization
24. Kumar, V., Pozza, I. D., & Ganesh, J. (2016). Cognitive social capital and customer                            relationship management. J. Mark, 80(2), 77-101.                              https://www.emerald.com/insight/content/doi/10.1108/APJML-02-2017-   0022/full/html
25. Lemon, K. N., & Verhoef, P. C. (2016). Understanding customer experience throughout      the          customer journey. Journal of Marketing, 80(6), 69–96.      https://journals.sagepub.com/doi/abs/10.1509/jm.15.0420
26. Lemon, K. N., White, T. B., & Poynor, B. L. (2022). An exploratory study of customer       satisfaction in a membership-based loyalty program. Journal of Marketing             Research, 39(1), 55-64.    https://www.researchgate.net/publication/281021202_Customer_Perceptions_of_   Loyalty_Programs_in_an_Emerging_Market_Context
27. Maggi, C., & Feliz, S. (2019). What is the Impact of Increased Business Competition?.       International Monetary Fund.    https://sites.northwestern.edu/cmv468/files/2019/09/JMP_August19.pdf
28. Meili, R. (2022). Loyalty program assessment: KPI-based evaluation of customer loyalty                  programs. Journal of Business Research, 139, 1125–1134. https://www.researchgate.net/publication/360720120_Loyalty_Program_Assessm            ent_KP   I-Based_Evaluation_of_Customer_Loyalty_Programs
29. Melnyk, V., & Bijmolt, T. H. A. (2015). The effects of introducing and terminating              loyalty programs. European Journal of Marketing, 49(3/4), 398–419.              https://www.emerald.com/insight/content/doi/10.1108/ejm-12-2012-    0694/full/html
30. Nielsen. (2021). Beyond martech: Building trust with consumers and engaging where           sentiment is high. https://www.nielsen.com/insights/2021/beyond-martech-             building-trust-with-consumers-and-engaging-where-sentiment-is-high/
31. Nguyen, T. T., & Nguyen, H. T. (2019). The impact of customer satisfaction with                 loyalty cards         on customer loyalty and word-of-mouth recommendations. J. Mark.             Res, 56(3), 367-381.               https://www.emerald.com/insight/content/doi/10.1108/09564230410552040
32. Oliver, R. L. (2020). Whence consumer loyalty? Journal of Marketing, 63, 33-44.                https://foster.uw.edu/wp-content/uploads/2016/07/12_Oliver_1999.pdf
33. Poudel, S. (2019). Customer satisfaction in automobile industry: A case study on customer satisfaction on automobile industry in Nepal.        https://www.theseus.fi/handle/10024/266752
34. Rana, J., Gutierrez, P. L., & Oldroyd, J. C. (2021). Quantitative methods. In Springer       eBooks (pp. 1–6). https://doi.org/10.1007/978-3-319-31816-5_460-1
    Ranabhat, D. (2018). CUSTOMER LOYALTY IN BUSINESS: views of students of              Centria   University of Applied Sciences.    https://www.theseus.fi/handle/10024/142883
35. Rahimi, R. (2008). Feasibility study of application and implementation of customer            relationship           management (CRM) in hotel industry. https://www.diva-    portal.org/smash/record.jsf?pid=diva2:1032358
36. Rust, R. T., Zeithaml, V. A., & Lemon, K. N. (2000). Driving customer equity: How             customer lifetime value is reshaping corporate strategy. Free Press.             https://books.google.com/books/about/Driving_Customer_Equity.html?id=L5IO9   p67Xk4C
37. Schuhmann, A. V., & Kwortnik, R. H. (2019). Loyalty Card Programs: Driving      Customer Retention and Profitability. J. Mark. Res.            https://link.springer.com/article/10.1057/fsm.2011.3
38. Sharp, B., & Sharp, A. (2019). Loyalty programs and their impact on repeat-purchase        loyalty patterns. International Journal of Research in Marketing, 14(5), 473-489.       http://www.nessvalley.com/resources/6076.PDF
39. Smith, A., & Johnson, B. (2019). Loyalty card programs in the retail industry: A    comprehensive review. J. Mark. Res, 45(2), 187-205.           https://link.springer.com/article/10.1057/fsm.2011.3
40. Smith, A., & Sparks, L. (2020). The role of loyalty programs in relationship marketing.        Journal of Marketing Research, 16(3), 45-59. https://www.researchgate.net/publication/247495186_The_Impact_of_Loyalty_Programmes_on_ Repeat_Purchase_Behaviour
41. Steinhoff, L., & Palmatier, R. W. (2016). Understanding loyalty program effectiveness:     Managing target and bystander effects. Journal of the Academy of Marketing                Science, 44(1), 88–107.    https://ideas.repec.org/a/spr/joamsc/v44y2016i1d10.1007_s11747-014-0405-   6.html
42. Verhoef, P. C. (2018). Understanding the effect of customer relationship management        efforts on customer retention and customer share development. Journal of          Marketing, 67(4), 30-45. https://psycnet.apa.org/record/2003-09070-001
43. Winer, R. S. (2001). A framework for customer relationship management. California          management review, 43(4), 89-105.    https://journals.sagepub.com/doi/abs/10.2307/41166102

44. Yi, Y., & Jeon, H. (2003). Effects of Loyalty Programs on Value Perception, Program       Loyalty, and Brand Loyalty. Journal of the Academy of Marketing Science, 31(3),           229-240. https://doi.org/10.1177/0092070303031003002