FORMATION OF CUSTOMER LOYALTY PROGRAMS
Abstract
The article is devoted to the study of theoretical and applied aspects of customer loyalty programs. Companies are forced to focus their marketing activities on building customer loyalty, which is a reflection of consumer loyalty. The main approaches to the interpretation of consumer loyalty are considered. The importance of measuring customer satisfaction is proved. Only a satisfied customer, as a rule, remains a regular customer of an enterprise. It is established that customer loyalty is often identified with customer satisfaction. The author emphasizes that customer satisfaction is a necessary but not sufficient condition for loyalty. The typology of consumers depending on the substantive elements of loyalty is generalized and the characteristics of consumers according to their level of satisfaction are presented: consumers of high, medium and low level of satisfaction. The components of consumer loyalty formation are allocated: behavioral, emotional and rational. It is concluded that consumer loyalty depends on the previous positive experience of consumption, as well as on the commitment to the brand's products. The necessity of developing comprehensive loyalty programs is substantiated and the process approach is prioritized for use. Based on the generalization of literature sources, it is found that most of the loyalty programs used in Ukraine are not effective enough.
The main reasons for the ineffectiveness of these programs are provided. The strategic competitive advantages of the introduction of loyalty programs by enterprises are allocated: reduction of marketing costs, the ability to set premium prices, the ability to maintain a high market share, and reduction of risks associated with doing business. It is emphasized that changes in consumer purchasing behavior during the war, associated with a decrease in income and an increase in prices for goods and services, require domestic enterprises to build the right strategies for influencing potential customers. Specific measures are proposed to improve the process of developing customer loyalty programs. Methods that can be used to assess customer loyalty are presented. According to the authors, building relationships with customers and, as a result, increasing loyalty is an important factor in business success, which contributes to the development of the enterprise, attracting new customers and reducing the cost of marketing promotion.
