2014Central European Business ReviewOpen access

Loyalty Programs in E-commerce and their Perception by the Young Adult Internet Population

Radek Tahal

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Abstract

One of the topical themes of today's marketing is customer loyalty. There are many tools that can be used to attract a customer and make him loyal. Most frequently applied are special loyalty programs. Some of them are well designed; others are often difficult to understand and they do not bring positive effect. This paper concentrates on e-shop loyalty programs with regard to the young generation of customers. Based on primary data, the goals of e-shops' loyalty programs are compared to the loyalty benefits preferred by customers. Whereas e-shop providers often remunerate their customers on the scheme of cumulative purchase history, customers appreciate an instant reward, regardless of whether it's small or not.

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One of the topical themes of today's marketing is customer loyalty. There are many tools that can be used to attract a customer and make him loyal. Most frequently applied are special loyalty programs. Some of them are well designed; others are often difficult to understand and they do not bring positive effect. This paper concentrates on e-shop loyalty programs with regard to the young generation of customers. Based on primary data, the goals of e-shops' loyalty programs are compared to the loyalty benefits preferred by customers. Whereas e-shop providers often remunerate their customers on the scheme of cumulative purchase history, customers appreciate an instant reward, regardless of whether it's small or not.

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Available abstract

One of the topical themes of today's marketing is customer loyalty. There are many tools that can be used to attract a customer and make him loyal. Most frequently applied are special loyalty programs. Some of them are well designed; others are often difficult to understand and they do not bring positive effect. This paper concentrates on e-shop loyalty programs with regard to the young generation of customers. Based on primary data, the goals of e-shops' loyalty programs are compared to the loyalty benefits preferred by customers. Whereas e-shop providers often remunerate their customers on the scheme of cumulative purchase history, customers appreciate an instant reward, regardless of whether it's small or not.

Key concepts: Loyalty, Loyalty business model, Business, Loyalty program, The Internet, Marketing, Advertising, Population

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