The Influence of Loyalty Programmes on Customer Loyalty in Banking Essay

The Influence of Loyalty Programmes on Customer Loyalty in Banking vault of heaven - Essay ExampleDue to globalised competition the strategic importance of satisfaction, faithfulness and whole step has been the core social structure in winning oer the consumers preferences and maintain competitive advantage. Thus the higher the quality of service, the more(prenominal) satisfied and loyal the customers would be. Since customer committal is still in a flux in the pecuniary service sector, banks have an opportunity to strengthen the customer birth by way of rewards programs which are pertinent to its customers. About 20% of the banking customers are likely to change the primary institutions and also almost half of the component of customers prefers relationship with multiple institutions. Therefore a successful loyalty program would get customers invested in the relationship by rewarding the customers on the most optimal products and services (BAI, 2011). Aims and Objective T he aim of the research is to induce out the influence of loyalty programmes on customer loyalty in banking sector. The objectives of the project are to Analyses the factors that influences the loyalty of the customers in the banking sector To analyses the influence of quality on satisfaction Any changes in the customers loyalty patterns Recommendations on how banks can improve customer loyalty. Research questions The following are the research questions associated with the project 1. What will be the impact of customers loyalty towards the banks brand image and positioning? 2. Does customer loyalty influences consumer behaviour? 3. How would customer loyalty affect the competitive advantage of the banking sector? 4. What is the influence of loyalty programs in the banking sector? 5. What factors influences the customers loyalty in the banking industry?. Literature Review Customer loyalty is about attracting right customers, acquire the customers to buy often, allow the customers t o buy in higher quantities and brings in more customers for the organization. it is build through means of keeping in touch with the customers, showing the customers that the organization cares for them and rewarding the customers for choosing a particular bank over its competitors. Thus treating the customers the way they want it to be treated (Customer Loyalty Institute, n.d). There are many variant approaches towards customer loyalty. Theories of behavioural loyalty were considered as the function of total purchase function of buying pattern, or of buying probability. These are the approaches that look at the brand loyalty rather than reasons. Loyalty should be evaluated both(prenominal) attitudinal and behavioural criteria (Akhter et.al, 2011, p. 1168). With the availability of ample banking facilities the customers gets influenced and this leads to customer loyalty towards its bank (Fry et.al, 2011). The managers are aware of the fact that quality superiority provides a compe titive advantage for the banks and leads to customer loyalty, growth of market share and productivity of the banks. elaboration has been identified as the key variable that influences the service quality perception that examines the banking sector (Sigala & Christou, 2006, p.381). Brand plays an of import role in bank marketing in order to attract as well as retain its customers. Brand building is a costly activity but its benefits