An investigation of the effectiveness of loyalty programs on repeat purchases: A case study of Airtel Nigeria in Taraba State
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Background of the Study
Loyalty programs are strategic initiatives designed to reward repeat customers, enhance retention, and foster long-term brand loyalty. Commonly offered as discounts, reward points, or exclusive access, loyalty programs have been widely adopted across various industries, including telecommunications (Okoro & Adekunle, 2024).
Airtel Nigeria, one of the leading telecommunications companies, operates loyalty programs to incentivize customer retention and promote repeat purchases. In Taraba State, where competition among telecom providers is intense, loyalty programs can serve as a critical differentiator in retaining customers.
Despite their popularity, the effectiveness of loyalty programs in driving repeat purchases remains uncertain, particularly in regions where customer needs and preferences vary significantly. This study evaluates the role of Airtel Nigeria’s loyalty programs in fostering repeat purchases in Taraba State.
Statement of the Problem
Although Airtel Nigeria has invested heavily in loyalty programs, their impact on repeat purchases in Taraba State is unclear. Factors such as program design, customer awareness, and perceived value may influence their effectiveness (Ibrahim & Yusuf, 2023).
This study explores the relationship between loyalty programs and repeat purchases, identifying key challenges and opportunities for improvement.
Objectives of the Study
- To evaluate the effectiveness of Airtel Nigeria’s loyalty programs in driving repeat purchases in Taraba State.
- To identify factors influencing customer participation in loyalty programs.
- To recommend strategies for optimizing loyalty programs to enhance repeat purchases.
Research Questions
- How effective are Airtel Nigeria’s loyalty programs in driving repeat purchases in Taraba State?
- What factors influence customer participation in these programs?
- What strategies can improve the effectiveness of loyalty programs in the region?
Research Hypotheses
- Loyalty programs significantly increase repeat purchases in Taraba State.
- Customer participation in loyalty programs is influenced by program design and perceived value.
- Optimized loyalty programs enhance customer retention and repeat purchases.
Scope and Limitations of the Study
This study focuses on the effectiveness of Airtel Nigeria’s loyalty programs in driving repeat purchases in Taraba State. It excludes other marketing strategies or regions and does not consider customer acquisition impacts.
Definitions of Terms
- Loyalty Programs: Marketing initiatives that reward repeat customers for their continued patronage.
- Repeat Purchases: The act of customers buying the same product or service repeatedly over time.
- Perceived Value: The customer’s evaluation of the benefits and costs associated with a product or service.
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