Investing the Impact of Loyalty Program on Customer Retention: The Case of Boots (Sutton)

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ACKNOWLEDGEMENT

I would like to thank my supervisors, friends and family, without their support this research study would not have been possible.

DECLARATION

I adjudge that the entire content of this dissertation is entirely my own work; the content used in this dissertation has not been submitted before in any educational institution and represents my own opinion.

Signed __________________ Date _________________

ABSTRACT

In study finds about how boots investment impacts on the loyalty programme on its customer retention. The study investigates the importance of the loyalty programs and the effect of these loyalty programs on customers' satisfaction and retention. Since the start of the loyalty card, it now becomes one of the largest retail loyalty cards and there is around 40% of the transaction recorded with this card. There are around 13 million users who use this card for purchasing their required products and services. The overall statistics shows that ROI on the loyalty programs is high and the store is getting high returns as well as customer retention. By implementing CRM, the managers said, boots sales increases, reduction in costs can be notified. After the responses of the managers of boots and case study analysis it can be concluded that the store is getting satisfactory return on its loyalty programs investments. The store is successful in retaining its customers and successfully getting lucrative returns. Thus, it can be proved that the companies must invest in the loyalty programs because the ROI is high against the loyalty program investment.

TABLE OF CONTENTS

ACKNOWLEDGEMENT2

DECLARATION3

ABSTRACT4

CHAPTER 1: INTRODUCTION7

1.1Back ground of the study7

1.2 About boots stores10

1.3 Research problem11

1.4 Aims and Objectives11

1.4.1 Aims11

1.4.2 Research Objectives12

1.3 Research Questions12

1.4 Rationale of the study12

1.5 Scope and limitation of the study13

1.6 Summary of thesis13

CHAPTER 4: ANALYSIS AND DISCUSSION15

4.1 Introduction15

4.2 Research Question15

4.3 Data Analytic Approach: Thematic Analysis15

4.4 Categorising the theme16

4.4.1 Interview questions16

4.4.2 Case study analysis19

4.5 Discussion20

4.5.1 Link and Relationship loyalty program and customer retention20

4.5.2 Loyalty programme influence customer retention of Boots21

4.6 Summary24

CHAPTER 5: CONCLUSION & RECOMMENDATIONS25

5.1 Introduction25

5.2 Evaluation of findings25

5.3 Recommendations30

5.4 Future Research Direction30

REFERENCES32

CHAPTER 1: INTRODUCTION

Back ground of the study

CRM is a relatively new concept but it is gaining fast acceptance throughout the market. CRM is not a mere tool for customer communication but in a wider scope it integrates sales, marketing, finance and, to some extent, quality and manufacturing into its ambit. Salomann, Brenner, (2006, 65 ) describes CRM as a process or a tool to increase information about the customer and increase customer loyalty to the business. Many authors over the years have described the objectives of CRM tool. Dowling, Uncles, (1997, 82 ) describes three objectives of CRM as to build a relationship with the customer which is long term and profitable, increase communication with customers and maximize company's share in the customer's business. Kivetz, (2005, 725 ) describe CRM as a tool to locate and engage and retain customers forming the core of customer focused business strategy. CRM, with its integrated communication systems, forms a contact centre where companies can securely communicate ...