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An evaluation of personalized loyalty strategies on repeat purchases: Evidence from a digital retailer in Kaduna

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Background of the Study:

Personalized loyalty strategies have become increasingly vital for digital retailers aiming to enhance repeat purchase behavior. In Kaduna, digital retailers are harnessing data analytics to develop loyalty programs that offer tailored rewards and incentives based on individual customer preferences. Such strategies include personalized discount offers, exclusive deals, and targeted communications that are designed to create a sense of value and connection with the brand (Adeniyi, 2023). By customizing the customer experience, these initiatives aim to transform one-time buyers into repeat customers, thereby boosting overall sales and customer lifetime value. The rapid growth of e‑commerce has intensified competition, making it essential for digital retailers to differentiate themselves through personalized approaches. This study evaluates the effectiveness of personalized loyalty strategies in driving repeat purchases among customers of a digital retailer in Kaduna. It examines the specific elements that contribute to customer retention and the overall impact of tailored rewards on purchasing behavior (Ibrahim, 2024).

 

Statement of the Problem

Despite the growing adoption of personalized loyalty strategies, there is limited empirical research on their effectiveness in driving repeat purchases in the digital retail sector of Kaduna. Retailers often lack robust measurement tools to assess the direct impact of tailored incentives on repeat purchase behavior. This gap hinders the optimization of loyalty programs and makes it challenging to justify further investment in personalization. The study seeks to address these issues by systematically evaluating the influence of personalized loyalty strategies on repeat purchases (Chinwe, 2023).

 

Objectives of the Study

To assess the impact of personalized loyalty strategies on repeat purchase behavior.

To identify key components of personalized loyalty initiatives that drive retention.

To provide recommendations for optimizing loyalty programs in digital retail.

Research Questions

How do personalized loyalty strategies affect repeat purchases in digital retail?

What elements of personalized loyalty programs are most effective?

How can digital retailers optimize these strategies to improve customer retention?

Significance of the Study

This study is significant as it provides empirical evidence on the role of personalized loyalty strategies in enhancing repeat purchase behavior. The insights will help digital retailers in Kaduna refine their loyalty programs to boost customer retention and increase overall profitability (Ibrahim, 2024).

Scope and Limitations of the Study

This study focuses exclusively on a digital retailer in Kaduna, Nigeria, and examines the impact of personalized loyalty strategies on repeat purchases. The findings are limited to the digital retail context and may not apply to brick‑and‑mortar establishments.

Definitions of Terms

Personalized Loyalty Strategies: Tailored marketing initiatives that offer rewards based on individual customer preferences.

Repeat Purchases: Subsequent purchases made by a customer after an initial transaction.

Digital Retailer: An online business that sells goods or services over the internet.





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