An examination of loyalty program effectiveness on repeat purchases: A study of a retail brand in Lagos
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
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- NGN 5000
Background of the Study:
Loyalty programs are designed to incentivize repeat purchases and foster long-term customer relationships. In the retail sector of Lagos, brands have implemented various loyalty initiatives, such as point-based rewards, exclusive discounts, and membership benefits, to encourage repeat business (Adebola, 2023). These programs aim to create a sense of belonging and reward continuous patronage. The competitive retail market in Lagos makes customer retention a critical priority, and loyalty programs are viewed as essential tools for driving customer behavior. By tracking customer purchases and offering tailored incentives, retailers are able to identify high-value customers and deliver personalized experiences that reinforce loyalty. This study examines the effectiveness of loyalty programs in increasing repeat purchases among customers of a retail brand in Lagos, evaluating the relationship between loyalty incentives and customer buying patterns. The research also considers the role of digital integration in enhancing the efficiency of loyalty programs, thereby contributing to sustained consumer engagement (Ibrahim, 2024).
Statement of the Problem
Although loyalty programs are widely used in retail, there is limited empirical evidence on their direct impact on repeat purchases in Lagos. Retail brands often struggle to determine which program components effectively encourage continuous patronage. The absence of standardized evaluation metrics for measuring repeat purchase behavior hinders the optimization of loyalty initiatives. As a result, retailers may face challenges in achieving a satisfactory return on investment from their loyalty programs (Adebola, 2023).
Objectives of the Study
To assess the effectiveness of loyalty programs on driving repeat purchases.
To identify key program elements that influence repeat buying behavior.
To offer recommendations for optimizing loyalty initiatives in retail.
Research Questions
How do loyalty programs affect repeat purchases in retail brands in Lagos?
What elements of loyalty programs are most effective in promoting continuous patronage?
How can retailers optimize their loyalty programs to enhance repeat purchase rates?
Significance of the Study
This study provides valuable insights into the impact of loyalty programs on repeat purchases, offering practical recommendations for retail brands in Lagos. The findings will help optimize loyalty strategies, thereby enhancing customer retention and driving sustainable business growth (Adebola, 2023).
Scope and Limitations of the Study
This study is limited to examining a retail brand in Lagos and focuses solely on the effectiveness of its loyalty program. It does not extend to other brands or retail sectors.
Definitions of Terms
Loyalty Program: A marketing initiative designed to reward repeat customers.
Repeat Purchases: The act of customers buying products from the same brand on multiple occasions.
Retail Brand: A company that sells goods directly to consumers.
