Development and implementation of an effective loyalty program in electronic commerce - The case of PFS and a leading brewing company

Abstract

Customer retention and customer loyalty are essential for businesses to become successful and loyalty programs have become a key component for customer retention (Heinemann & Schwarzl, 2010; Steinhof et al., 2014). This work has been written to identify the benefits of loyalty programs, their design and implementation process as well as their opportunity as retention service for LiveAre, the digital marketing agency of Priority Fulfilment Services (PFS). The project has been developed on the concrete example of a current client of LiveArea, one of the leading brewing companies. The methodology applied to the development of the project consists of a literature review on loyalty programs and their development process, a benchmarking of best-in-class loyalty programs, interviews with specialists as well as a data analysis of the brewing company's customer behaviour. The confidential project has finally been generalised and recommendations on the promotions of loyalty program based communication services could be made.