Increasing Bank Customers’ Loyalty through Innovative Loyalty Programs

Abstract

In the thesis, it was figured out how to increase customer loyalty with the help of innovations in the loyalty program. The thesis clearly traces the obsolescence of loyalty programs of several Finnish banks, as well as demonstrates the modernity of one international and one local banks. In this thesis, the goal was to find the best elements of a loyalty program for implementation in the banking sector in order to increase customer loyalty.

At the beginning of the thesis, an introduction was presented with a description of how the thesis would be written. Then a relevant theory was written. The theory gives a complete understanding of what will be written in the thesis. Next comes the analysis of the Finnish market, and then the international one. After the analysis, the innovations that can be implemented are given. At the end of the thesis, the conclusion of the entire thesis was summed up.

Methods such as induction and deduction were used to write the thesis. These methods are best suited to the topic of the thesis.

The results of this thesis are well-developed innovations for implementation in bank loyalty programs. The results represent the most diverse innovations. A bank that has decided to implement does not have to implement everything. Most innovations work without each other. Banks with a weak loyalty program need to start implementing innovations to maintain customer loyalty. The thesis can serve as an excellent basis for further research related to the increase in profits and expansion of banks into other markets.