The Influence of Loyalty Programs on Customer Loyalty in Banking Dissertation

The Influence of Loyalty Programs on Customer Loyalty in Banking Sector in Saudi Arabia - Dissertation Example The research topic aims at identifying the importance and impact of loyalty programs on customer loyalty in the banking sector of the United Kingdom. In order to examine the research topic, the researcher collected secondary information from academic books, journals and past research papers. The secondary data stated that loyalty programs play an important role in earning the loyalty of customers along with enhancing their satisfaction level. However, customer loyalty in the banking sector is dependent on multiple factors like effectiveness of financial products and services, communication channels, personalised services and attention and nature and benefits of loyalty programs. The banking sector of the United Kingdom has been affected by the financial crisis of 2008-10 that made many customers to lose their trust and loyalty. However, banks like HSBC, Barclays and Royal Bank of Scotland have been offering multiple loyalty programs with large numbers of them based on loyalty cards. Based on the research findings, it was assumed that customer loyalty can only be enhanced through increasing the satisfaction level of customers along with offering appropriate products and services in a cost effective manner. Loyal customers are not always productive to organsiations as productivity depends on buying behaviour. It is important to target customers who have been loyal along with an enhanced and positive buying behaviour. The study also revealed that customer should be empowered at every stage of the buying in order to make them feel privileged and special. This will help in earning their commitment and loyalty that will strengthen the operational framework. Loyalty programs introduced by banks do impact the loyalty level of customers but the important thing is to retain their loyalty for a long period of time in order to grow and develop at a speedy pace. It is important to earn their trust and commitment rather to stay