Influence of Loyalty Card Programs on Customer Satisfaction and Engagement in the Retail Industry of Colombo District

The retail industry in Sri Lanka is marked by fierce rivalry, with significant progress observed in the last ten years. This development is ascribed to changes in consumer lives, which are progressively shaped by Western influences. Due to intense competition, supermarkets must focus on customer acquisition and retention methods to improve their market share. Even with the efficacy of acquisition campaigns, prominent supermarket chains admit that previously recruited customers are transitioning to rival companies. In order to gain a competitive advantage, supermarket chains should give high priority to implementing efficient customer retention programs, such as loyalty programs, that have a substantial impact on the overall operation of the firm. Nevertheless, reward systems in supermarkets frequently fail to provide the expected advantages due to intrinsic limitations that discourage customer engagement, arising from widespread discontent with loyalty programs. This study aims to determine the variables that impact customer satisfaction with loyalty programs in the grocery sector. Based on a thorough examination of the literature, four crucial elements—Anticipated Benefits, Privacy Concerns, Variety Seeking, and Customer Involvement and Commitment—were important factors influencing customer engagement in loyalty programs. The study examines Keells, Cargills, Arpico, and Laugfs shoppers with various loyalty cards. The population under consideration for this study comprises all individuals residing in the Colombo district participating in supermarket transactions. The studys findings clarify the effect of loyalty card programs customer retention and engagement elements on total customer satisfaction, highlighting the significant influence of these aspects on consumer contentment. R. K. M Lankanath "Influence of Loyalty Card Programs on Customer Satisfaction and Engagement in the Retail Industry of Colombo District" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-6 , December 2023, URL: https://www.ijtsrd.com/papers/ijtsrd61197.pdf Paper Url: https://www.ijtsrd.com/management/organizational-behaviour/61197/influence-of-loyalty-card-programs-on-customer-satisfaction-and-engagement-in-the-retail-industry-of-colombo-district/r-k-m-lankanath