Can loyalty programs attract new clients?

Abstract

Loyalty programs are a measure used by several companies to strengthen the relationship established with their customers, and to encourage purchase intentions and preference in the market. In the cosmetics industry there are several companies that use these programs, such as Sephora, through the Sephora Card, or, more recently, Kiko Milano, by introducing the Kiko Me program. These programs reveal benefits for consumers, demonstrating their relevance for companies9 success, as loyal customers confirm long term purchases, and do not imply large marketing expenses. In fact, this marketing tool is used to encourage purchases and establish loyalty, rather than attract new customers. However, is their presence an incentive for a non-customer to make a purchase? The present study develops the application of three loyalty programs- points earned, tier system, and vouchers- taking into account their benefits and impact on purchase intentions, as well as the perception of the value of each one. Through the analysis of several articles, which made it possible to gather theoretical information, an online questionnaire was developed, making it possible to evaluate, in practice, the previously established perceptions. The three types of loyalty programs used helped to comprehend this tool positively impacts purchase intentions, but value perception is not perceived as significant in this relationship, nor is the type of client. In the end, this tool is not revealed to be the most appropriate for attracting new clients.

Date of Award	6 Feb 2025
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Paulo Romeiro (Supervisor)