An Analytical Study on the Influence of Consumer Loyalty Programs on the Small and Medium Size Business Based on Consumer Psychology

Abstract

Recent exchanges between businesses and consumers have highlighted the importance of loyalty programmes. On the question of whether or not customer loyalty programmes in small and medium-sized businesses are successful at retaining consumers, industry experts are divided. Customers who join a loyalty programme after making a purchase from the program's store are eligible for rewards. Promotions frequently include benefits like discounts, cash back, free gifts, and other presents of various types. The effectiveness of customer loyalty programmes depends on rewarding customers for their steadfast allegiance. This study examines the level of dedication displayed by SMEs to their individual clients. The main goal of this study is to evaluate customer loyalty programmes using descriptive research as a lens. We use primary data for this specific investigation. A questionnaire and specific criteria for scoring responses were used to help assemble the information needed for the survey. Data from surveys are described by descriptive statistics. several smaller companies At various points during the entire process of drawing inferences from the data, mathematical approaches and techniques were used. According to the research's findings, the majority of firms utilise a variety of promotions to attract new clients. Small and medium-sized businesses may find it difficult to expand their consumer base, but loyalty programmes can support them. A company can promote client loyalty in three different ways: through e-commerce, portals, and referral programmes.