Customer Relationship as a Key for Modern Marketing Companies

The field of customer relationship management has given way to loyalty programs, which are designed to increase loyalty in customer by creating advantages that persuade consumers to limit their shopping to one particular retailer. There is an academic debate as to whether or not the loyalty programs that are administered by companies effectively increase loyalty. Companies need to communicate the benefits of LPs better, as well as ensure they provide the benefits customers want, because it appears customers’ perceptions of LPs may differ from the intended perception from companies. The goal of the thesis is to analyse literary research that interprets the effects of loyalty programs on customer behavior and then perform a study to fill in any gaps of knowledge needed to form a conclusion and make recommendations for retailers on how to improve loyalty programs and make them more effective.