Evaluating the Effectiveness of Loyalty Programme in the Small Retail Business Segment

Currently, there are various types of loyalty programs that retailers use as effective tools to attract and retain a customer base through various privileges, discounts and bonus promotions, these events are a necessary measure for a competitive growing business. Various kinds of privileges can form a consumer's commitment and loyalty to the brand, which he will prefer more than other competitors of the company, but there is also a problem of financing, implementing and measuring the effectiveness of loyalty programs in the small retail business segment due to the small amount of available funds and competent knowledge necessary to assess the effectiveness of a consumer loyalty program. The purpose of this dissertation is to identify the most effective LP mechanics for the small business format, which will contribute to the expansion and retention of the customer base, as well as the impact of consumer behavior on repeat purchases. As part of the research work, practical activities were carried out at Metro Cash and Carry LLC, where attention was paid to the study of temporary loyalty programs aimed at creating waves of repeat purchases, segmentation of consumers, CRM systems with specifics of communication with consumers. To achieve our goal, a field study was conducted on the basis of the «SBIS» platform available to one of the representatives of a small retail business, which included: the introduction and configuration of a loyalty program, registration of the customer base with incentives, building communication with consumers and temporary loyalty programs that influence consumer behavior.