An analysis on the impact of customer loyalty programmes on customer satisfaction and retention, a case study of Global Papers (Pvt) Ltd

Abstract

The research sought to find out if Global Paper’s customer loyalty programs enhance customer satisfaction, retention and how other stakeholders contribute to retention of customers. In the study, a causal research design was used targeted at Global Papers employees and customers. A sample size of 90 respondents constituting 80 customers and 10 employees was used. The researcher used random sampling in selecting respondents from customers and convenient sampling in selecting respondents from employees. Interview guide and questionnaires were used as the key research instruments. Tables, graphs and pie charts enabled a clearer presentation. The study found out that indeed customer loyalty programs can lead to customer satisfaction, retention and increased profitability. In order to gain total loyalty other stakeholders have a critical role to play, in gaining customer satisfaction and retention. Also customer loyalty can only be gained through employee loyalty. There is need to invest in customer relationship management so as to gain knowledge and insight of customer needs. The use of Key Account Management is one such means. Furthermore this study recommended goal setting to every employee for monitoring purpose and that the company should mostly use formal communication on customer loyalty programmes.