The effectiveness of loyalty program towards customer loyalty

Customer loyalty is a successful key to a business. However, the changes in customer preferences, market trend and high competitors are inevitable for business. Thus, marketing strategy as loyalty program smooths the business to encourage and promote customer loyalty. Several characteristics of loyalty program such as policy, reward, personalization, tangibility, information usefulness, courteousness or helpfulness, and communication quality predict to influence customer loyalty. Analysis of data using Partial Least Square (PLS) has been applied to investigate among 100 customers who visit one of the selected retailers in Klang Valley. The finding revealed only personalization had small effects on customer loyalty. While other constructs were not supported, this finding implies for a business to critically identify more strategies to promote and encourage customer participation in a loyalty program.