Value of customer loyalty programs for consumers

Abstract

Nowadays, we are coming aware of the fact that we cannot imagine our modern world without a car. Fuel is a product that most of the car drivers need. In the competitive market, gas stations try to attract as many customers as possible. One of these attractions is a customer’s loyalty program. The goal of the thesis is to study the Russian gas station market to understand what customers value in customers loyalty programs of gas stations. In the theoretical part of the research, the author examines and discusses the customers’ loyalty programs, types of loyalty programs, analyses the key factors what influence customer loyalty, reasons why companies need loyalty programs, how should the effective loyalty program look like and how to create them. The author proceeds inductively and uses a qualitative research approach. Sеcondary dаta is collected from vаrious reliable sourcеs of literature, including books, artiсles, and Internet sоurces. The secondary data is supрorted with primаry data, which is collected by interviewing fifty persons who are customers of gas stations. The research findings indicate that customers value mostly points and discounts in the loyalty programs and the quality of products that could be purchased for these points. However, to become a loyal customer, the customer should be attracted by the quality of goods and services of the company. Otherwise, he/she will not come back again.