Revolutionizing Retail Through Loyalty Programs: future of consumer retention and sales growth : a case study of Avolta

Abstract

This thesis explores Club Avolta, a newly launched loyalty program of Avolta AG. The study aims to address three research questions: Which top 3 factors influence customers to join the Club Avolta loyalty program? Are there differences in preferences among segments, such as age, nationality, or travelers, to join loyalty programs? What impact do loyalty registrations have on sales growth and customer retention? A mixed-methods approach was adopted, which combines surveys of only 49 Club Avolta members, interviews with 7 sales associates, and analysis of secondary sales data from October 2024 to March 2025 of the Helsinki-Vantaa airport duty-free store. The results reveal that discounts, exclusive prices, the global applicability in over 75 countries, and ease of registration are the top 3 influencers for joining the program. Segment analysis revealed notable differences across segments, and the most surprising fact was that most segments were neither influenced by the program partnership with Finnair nor the company’s marketing effort. Club Avolta, however, was found to positively impact members' purchasing behavior with 173% more ATV than non-members, higher purchase frequency, and likelihood of buying premium products. Furthermore, statistical correlations among several factors highlighted the valuable strategic importance of loyalty programs in customer retention and high turnover in transient retail settings such as airports. The study was grounded in Equity Theory, Self-Congruity Theory, and Self-Determination Theory, highlighting perceived fairness and reflecting self-image influence on loyalty engagement. Limitations such as small sample size, using a single geographic location, and a single language use, necessitate careful interpretation and suggestions for further research.