Do loyalty programs augment growth in supermakerts? Kenyan evidence
Anyieni, A. G.
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Customer loyalty schemes have flourished in the era of consumer retention and stiff competition for the customers by the supermarkets and have been eagerly embraced by retailers and consumers alike. The loyalty schemes as we see it today are a replica of the AAdvantage Programme; a frequent flier programme instigated by American Airlines in 1981. The rapid expansion of the Kenyan economy over the last eleven years in spite of the post election violence of 2007/2008 have led to a retail boom in the country which in turn has encouraged the entry of new players and aggressive approaches by existing retailers such as the introduction of loyalty cards and innovative marketing strategies. The primary purpose of this paper is to evaluate the extent to which loyalty schemes enhance performance of the supermarkets in Kenya. In order to do this, the researcher underscored various categories of loyalty schemes employed in Kenya as identified in the literature. The study established that loyalty schemes spur the growth of supermarkets in terms of market share, sales and revenue in Kenya. Keywords: loyalty scheme, loyalty card, supermarket, Kenya.