Sources of Awareness, Uses and Satisfaction Level of Customer Regarding Loyalty Cards

1. INTRODUCTION

Customer loyalty is the core goal of all marketing activities. A standout amongst the most prominent patterns in retail marketing has been the dispatch of card-based loyalty programs. Loyalty programs look to bond customers to an association or its items and administrations by offering an additional incentive. Companies have begun focusing upon loyalty programs in light of the fact that dedicated customers are increasingly gainful to a firm (Reichheld 1996). The customer loyalty brings profitability by marked down costs, diminished cost sensitivity, and expanded spending and positive informal exchange by the customers. The customer loyalty diminishes the endeavours and resources which are required to entice a new customer and furthermore guarantees rehash purchases from the present ones. The customer loyalty acts a source of competitive advantage over the contenders and the system to win customers.

A loyalty card is a plastic card that a few shops provide for ordinary customers. Each time the customer purchases something from the shop, points are electronically stored on their card and can be exchanged later for goods or services. Our straightforward/smart cards are utilized widely as Loyalty Cards. A solid base of loyal customers is a

of the day, our straightforward/smart cards are utilized widely as Loyalty Cards. A solid base of loyal customers is a pre-essential of any business. Our loyalty cards not exclusively do brand of the company, yet in addition guarantee improved business opportunities. Loyalty Cards are phenomenal approach to create additional business and function well as a marketing tool to spread the world about the business. A loyalty card holder is an individual from loyalty program. The loyalty card program is an incentive arrangement that enables a retail business to assemble information about its customers. The customers are offered item at discount, coupons, points and reward towards their successive purchase in a shop. The possibility of loyalty card is, the point at which the customers visits a shop and make a purchase, they get stamp on their card, a few returns and purchase later. They can recover the card for reward of goods and services. Numerous organizations find that loyalty card conspire builds deal through existing customer and draw in new one too.

Loyalty programs upgrade customer loyalty legitimately by offering rewards as an incentive to shop consistently at any supermarket. Loyalty Programs likewise create impressive data for supermarkets, including a customer's name, address and purchase inclinations. Products can utilize this data to tailor item contributions, advancements, speculation and publicizing to the necessities of their customers, in this manner by implication upgrading loyalty. The real advantage of the loyalty card programs is the accumulation of useful customer information which assumes a critical job in different marketing methodologies. The useful customer data opens the field for miniaturized scale marketing, customization at store level or at the customer segment level. The data got with the assistance of loyalty cards helps in examination of consumer conduct, and expectation consumption by giving incentives to the customers to shopping at a particular store or chain of stores. It takes a shot at basic thought, the more cash customer spends, the more noteworthy rewards he gets. The organization of rewards may differ from giving them discounts on next purchase to rewarding with purchase points which can be recovered after collection for purchase of changed range of items. Some of the time rewards are additionally given type of free home delivery and free stopping. The individuals from loyalty program are given a loyalty card which is a charge card style plastic card. The plastic card accompanies a magnetic strip or standardized identification which conveys a novel recognizable proof number. This unique identification number aides in following the exchange of the customers. Loyalty cards just screen the exchanges and don't encourage the payment. The innovation utilized in loyalty card helps in social affair the data about the customers. Each time customers make a purchase, the data identified with the exchange (price, brand, place and so forth.) is recorded in the part subtleties. Along these lines the total record of exchange is kept up with the assistance of loyalty cards, which goes about as store of data about the customer. A loyalty card program isn't just a good method to get new customers it's likewise an attempted and trusted technique for keeping them. Loyalty card system urge customer to return all the more frequently to exploit special offers, discounts, rewards and so on. The more they shop the more they receive consequently. Loyalty card scheme can be an amazing method to expand product awareness. It may urge customer to attempt something new by offering them the odds to get one for one free, changing the reward from time to time keeps things new and increment learning of your products. Loyalty customers who appreciate the rewards may urge their companions to participate in the loyalty programs. To build the range of the loyalty cards of a particular shop, they may offer an extraordinary reward to the loyal customers who urge their companions to join the loyalty schemes of the particular shop. Loyalty card schemes are acquainted with make customer feel progressively vital and safe. Customer satisfaction is more important as it keep them returning for more and empowering their loved ones.

• Higher Cart Value. • Customer Retention • Relevant Customer Data and Consumer Trends

• Increased Product Awareness • Better Customer Communication • Increased Reach • Balancing the Bottom Line • Customer Loyalty

Swati Singh (2012), - The primary destinations of loyalty card program gathering of customers information which assumes in essential job in purchasing power of customers in retail locations. The loyalty card diminishes the imperfections and expands the resource which impacts the new customer and furthermore guarantees the rehashing purchase rate. The customer purchasing rate increments amid the seasonal offers. The loyalty programs function as a useful tool for holding old customers and including the news ones. The examination infers that the loyalty card issued by the retail shops and it make an effect on the mentality of the customers, which empower the customers in their purchase behavior. Arunram (2013), - The fundamental point of the examination was done based on the information given by the respondents and the customers of five retail outlets, for example, Lifestyle, Max, Shoppers Stop and so on. It was discovered that the loyalty cards helped the business acquire benefit and customer loyalty and gave more advantage to the customers, for example, reward points, offers, discounts and coupons and so forth which made the customers increasingly fulfilled. Chibaya (2016) anyway expresses that loyalty programs alone are not satisfactory to gain customer loyalty. Customers that join loyalty card programs are issued with loyalty cards which are generally in a bank credit card style which contain scanner tags programs, the loyalty card is intended to screen and track purchase exchanges and for customers to reclaim rewards that collect in connection to spending patterns (Worthington and Fear, 2009). Retail loyalty card programs are organized with explicit terms and conditions on how rewards must be recovered. Christine Kasa (2017) – The discussion on whether loyalty cards affect customer purchasing behaviour has been Ongoing for quite a while. There have been diverse perspectives from past research thinks about in both creating and created nations. Be that as it may, this subject is significant as it identifies with comprehension and satisfying customer inclinations. The motivation behind the examination was to explore if customers see loyalty cards offered in real retail locations in Gauteng to be useful, and to decide whether they impact the purchasing behaviour and choices made by customers. The investigation likewise expected to comprehend the explanations behind different loyalty card registration. The quantitative methodology was utilized in this examination, and organized surveys were utilized to gather information. The outcomes demonstrated that loyalty cards impact purchasing behaviour as the occasion‘s customers purchased in stores as individuals expanded, anyway there was vulnerability if the measure of cash spent likewise expanded.

3. OBJECTIVES OF THE STUDY

• To examine the source of awareness of loyalty cards by the respondents. • To research the loyalty card, loyalty cards programs and the advantages customers get by utilizing the loyalty card. • To dissect the motivation behind utilizing the loyalty cards dependent on the different questions. • To try the shopping pattern of the respondents in Coimbatore, India • To discover the level of satisfaction towards loyalty cards.

4. RESEARCH METHODOLOGY

An examination configuration is the general arrangement or program of research. A research design or model shows an arrangement of activity to be done regarding a proposed research work.

The example of 200 respondents managing loyalty program in Coimbatore was picked for the examination. With the end goal of the investigation, convenient sampling technique has been received.

Primary data and secondary data have been utilized for the examination. The primary data has been gathered from the questionnaire by issuing it to the consumers in the Coimbatore city. The inquiries in the questionnaire were set up so that it will be simple for the consumers to peruse and comprehend for filling it. The secondary data was gathered from magazines and alluded a few books.

5. DATA ANALYSIS AND RESULT

It is finished up from the table that 32% know through advertisement, 29% through word of mouth, 27.5% Aware Through Social Network And 11.5% Are Aware Through Other Source in Which Majority (32%) of the respondents know about loyalty cards through advertisements.

Most (30%) of the respondents possess two loyalty cards, Most (42%) of the respondents visit fashion stores just when there is a need, Majority (37%) of the respondents use loyalty cards of a particular store as a result of wide scope of accumulations, Majority (55%) of the respondents periodically get refreshes from the stores, Majority (50%) of the respondents claim loyalty cards to enjoy discounts and offers.

It is concluded from the table that (42%) of the respondents spent between 1000 – 2000 per shopping. Majority (53%) of the respondents have purchased from Life Style. (32%) of the respondents prefer to save the points in the card for later use when the points reach the limit. Majority (71%) of the respondents like to share the information about the cards to others.

Above table demonstrates that 43 percent of the respondents are satisfied with the money savings, 40 percent of the respondents are satisfied with quick access factor, 38 percent of the respondents are satisfied with the offers and discounts, 40 percent of the respondents have neutral feeling about inconvenience in carrying the cards.

6. CONCLUSION

Loyalty cards are a significant essential part in an entire program of endeavors intended to build customer responsibility to a store. They speak to the chance to construct long haul customer loyalty. Be that as it may, they are not the sole factor in a customer's store loyalty advancement. Loyalty cards sway the consumer purchase behavior in positive way as it impacts the consumers to make repeated purchases as consumers locate the distinctive advantages for example immediate and circuitous or immediate. Loyalty cards helps in expanding customer retention which significantly improves a company's profitability and accordingly implies the positive effect of loyalty cards. Consumers show submitted behavior towards loyalty cards because of various sorts of advantages seen by them. Rewards which are economic, psychological and sociological in nature lead to more prominent trust, responsibility and advancement of long-haul relations. Moreover, the loyalty card program must have a structure that inspires customers to see purchases as an arrangement of related choices instead of as autonomous trans-activities. Loyalty programs are found all over the place yet their actual esteem still stays obscure as a rule. There is no uncertainty that the loyalty cards have certain advantages for directors just as customers. Companies can assemble some useful data about their consumers and they profit by this collected information as they create marketing systems. Subsequently, companies need to mull over the entire bundle. They should intend to assemble an associated system of customers, accomplices and sellers, empowered by innovation, all progressing in the direction of profitable, and mutually beneficial relationships. The points added to the card after each purchase is by all accounts less, it very well may be expanded. For each purchase, more points can be added to the customer's card. In the event that he is a normal customer, at that point more reward points can be added to his/her card. The customers come to purchase in a hurry and they may have overlooked their cards. Along these lines, their enlisted telephone numbers can be utilized to add points to their cards. The clerk can advise the customer and reclaim the points after each hundred points. A message can be sent to remind the customers about the quantity of points accessible in their card and to recover it as quickly as time permits. In the event that the customer loses the card, he loses every one of the points in it on the off chance that he is unfit to recover it. Applying for another card will just include the points from the earliest starting point. Recover the card or card number when the customer loses the card, rather than enlisting for another one.

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PhD Scholar, Department of Commerce, Shri Jagdishprasad Jhabarmal Tibrewala University, Jhunjhunu, Rajasthan himanshusharmabwn@gmail.com