AN EVALUATION OF LOYALTY APP STRATEGIES ON CUSTOMER RETENTION: A CASE STUDY OF A GROCERY CHAIN IN PORT HARCOURT, NIGERIA.
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Background of the study:
Loyalty apps have emerged as an effective tool for enhancing customer retention by rewarding repeat purchases and fostering brand loyalty. Grocery chains in Port Harcourt are increasingly leveraging mobile apps to offer personalized discounts, loyalty points, and exclusive promotions. This study examines the role of loyalty app strategies in retaining customers by analyzing user engagement metrics, app usage patterns, and redemption rates (Olu, 2023). By integrating data analytics, these apps can tailor rewards to individual shopping behaviors, encouraging continuous patronage. Moreover, loyalty apps create a direct communication channel between brands and consumers, enabling real-time feedback and personalized marketing messages (Ibrahim, 2024). Despite these advantages, challenges such as app usability, technical glitches, and low customer participation may hinder retention efforts. The research investigates the factors that influence loyalty app success, offering insights into best practices for designing and implementing effective retention strategies within the competitive grocery sector (Nwankwo, 2025).
Statement of the problem:
Although loyalty apps hold promise for enhancing customer retention, grocery chains in Port Harcourt face challenges in maximizing their effectiveness. Issues such as low app adoption rates, technical difficulties, and poorly targeted rewards limit customer engagement and repeat purchases (Olu, 2023). Furthermore, the inability to seamlessly integrate app data with broader customer relationship management systems complicates the delivery of personalized experiences (Ibrahim, 2024).
Objectives of the study:
To assess the impact of loyalty apps on customer retention.
To identify challenges in implementing effective loyalty app strategies.
To propose recommendations for optimizing app-based retention programs.
Research questions:
How do loyalty apps influence customer retention in grocery retail?
What challenges hinder the effectiveness of loyalty app strategies?
What measures can enhance customer engagement and retention through loyalty apps?
Significance of the study:
This study is significant as it provides valuable insights into leveraging loyalty apps to improve customer retention. The findings will guide grocery chains in Port Harcourt to refine their digital retention strategies, ultimately increasing repeat purchases and long-term customer loyalty (Nwankwo, 2025).
Scope and limitations of the study:
The study is limited to evaluating loyalty app strategies for a grocery chain in Port Harcourt, Nigeria, focusing solely on customer retention metrics.
Definitions of terms:
Loyalty App: A mobile application designed to reward customer loyalty.
Customer Retention: The ability of a business to retain its customers over time.
Grocery Chain: A retail organization specializing in the sale of food and household products.
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