Consumer perceptions of loyalty programmes offered by cosmetic retailers in Durban and on the KwaZulu-Natal North Coast

Abstract

The primary purpose of this study was to determine consumers’ perceptions of loyalty programmes offered by cosmetic retailers in Durban and on the KwaZulu-Natal North Coast, South Africa. A broad and in-depth literature review of loyalty programmes as tools for retaining consumers, as well as the different types of loyalty programmes currently available in South Africa, was conducted. An empirical study was conducted by using an interviewer-administered questionnaire to collect data from consumers who were members of cosmetic retailers’ loyalty programmes. A quantitative approach was followed in order to satisfy the research objectives of the study. Loyalty programmes are an integral part of many retail businesses as they allow retailers to reward returning consumers with (amongst others) discounts or special promotional offers when the loyalty programme is used at the point of sale. The rapid advancements in technology has also enabled retailers to maintain databases containing valuable information on consumers’ spending patterns, which informs retailers about products consumers prefer buying. Retailers all over the world have been using loyalty programmes to retain existing consumers by rewarding loyalty and win over new consumers. Although many South African retailers have introduced loyalty programmes into their businesses, consumers’ perceptions of loyalty programmes offered by cosmetic retailers have not been investigated here. The results of this research study indicate that consumers perceived loyalty programmes as easy to use at the point of sale when making purchases. Consumers also felt that loyalty programmes helped them to save money through the redemption of vouchers or points. Overall, consumers were satisfied as members of cosmetic retailers’ loyalty programmes.