STUDYING OF THE EFFECTIVE FACTORS ON A LOYALTY PROGRAM IN KITCHEN APPLIANCE BUSINESS

Abstract

In current business situation, there is the high competition of the business world among companies to prevent their market shares as well as maintain the business sustainably. Therefore, several companies are trying to find out a tool that meet the above requirement and customer relationship management (CRM) is a beneficial tool for the companies to maintain their customer base to be longer with the company. Besides, CRM can help them to gain profits and revenues from both existing and new customers effectively. Inside of the CRM principle, the loyalty program is also a CRM tool that is widely used in nowadays. To successfully build a loyalty program, the company should create its loyalty program to meet the member’s requirements in case of member’s privileges, redemption point and timing as well as after sales service provided specially. However, the required investment is based on the company readiness to do CRM in terms of resources needed such as budgeting, people, customer database and corporate strategies aligned with CRM strategies. To establish a loyalty program of a kitchen appliance company, the effective factors have been studied to find out what the factors are used by customers for making the decision to apply the loyalty program. Therefore, 10 variables are surveyed with 107 respondents by the questionnaire of 21 questions to find out the effective factors with factor analysis that is a start of a research process. This project would have benefited from more detailed and systematic analysis. However, time was a critical issue for this project. With factor analysis of data collected, the result has been revealed the two factors of member’s benefits and after sales service attributes which influence the customer’s decision to join the loyalty program after buying of a kitchen appliance. Therefore, CRM managers and marketers in the kitchen appliance business can use these factors for creating their loyalty programs to appeal customers to become members of the loyalty program more effectively and efficiently. KEY WORDS: Loyalty program / Customer relationship management / Effective Factor / Kitchen appliance