Influences of consumer loyalty cards on store Loyalty: The case of uchumi and nakumatt Supermarkets in Nairobi

The management of customer relationship as a source of competitive advantage has \nbecome a vital component in success of firms. The firms have realized the need to \ndevelop such long-term relationships to guarantee constant streams of revenues and \nprofitability. Of the strategies that firms have employed in influencing store loyalty \nhas been the use of loyalty cards. The use of loyalty cards as a knowledge tool has \nbecome so critical that retailers are offering customers rewards in return for \ncontinuous use. The main question has been whether loyalty cards really influence \nstore loyalty. This study empirically researched on the influence of loyalty card on \nstore loyalty. \nTo achieve this objective, a descriptive survey was performed. The research targeted a \nsample of 200 of which 200 responses were received. This represented a 100% \nresponse survey rate. Primary data was collected using a semi-structured \nquestionnaire and data analyzed using percentages and mean scores. Research \nassistants were trained on the administration of questionnaire and follow up \nconducted as a control tool. \n-.. \nThe comparative findings demonstrate that loyalty card do indeed influence store \nloyalty. The study confirmed that most consumers .v.iewed the loyalty cards as useful \nand were willing to provide personal information to the firms. The study however \nnoted that loyalty cards cannot work in isolation as the only factor that influence \ncustomer's store loyalty development. Results of this study show that customers also \nfocus heavily on the everyday low price, assortment of items, customer service, \nconvenient, location and quality of merchandise as their top factors for developing \nstore loyalty. Therefore, companies have to take the whole package into \nconsideration. Firms need to communicate the value additions that arise from using \nloyalty cards. \nIt is the recommendation of this study that firms address the issues of rewards \nobtained from the use of loyalty cards. The current consumer perception is that the \nvalue proposition is not enough and firms need to better communicate this value \nproposition. Further research should be conducted to determine the effect that number \nof loyalty cards that consumer have in influencing their store loyalty . \n..•. \nv