Loyalty : the translation of information into value?

Habberton, Colin Vincer (2005-12)

Thesis (MPhil (Information Science))--University of Stellenbosch, 2005.

Thesis

ENGLISH ABSTRACT: Loyalty programmes have become very popular over the last 10 years and many businesses have chosen to implement such programmes to support their marketing strategies. Fundamental to the functioning and success of such loyalty programmes is the ability to gather, process, analyse and apply information regarding a business' customers. Such information is generated through customers' interactions with the programme and the business to which it is linked, as well as the various services and their providers that make up the programme. The aim of this research project is to investigate the question of whether an information-oriented strategy, based on the principles and paradigm of loyalty manifest in the global phenomenon of loyalty programmes, can deliver value to a business adopting them. In the process of the investigation, the primacy of information as the source of value for any business in the new economy will be discussed. This will be transposed onto the argument that the customer is the source of revenue generation and drives the flow of value in a business system. The results of these two streams of argument will show how the synergy between customers and their information, through the lens of loyalty economics, can be translated into business value with the achievement of core business objectives, i.e. sustainable revenue, growth, profit and competitive advantage. Evidence of these contentions will be provided by presenting and analysing local and international loyalty programmes as case studies manifesting this approach. In conclusion, the various findings of the research will be synthesised in the context of existing, sound business, customer, and information and knowledge management theory to derive an information oriented model of loyalty. This model is intended to be a strategic framework which a business can apply to provide insight into their decision making and assist in the achievement of their objectives. In further research beyond the limits of this paper, the model is intended to be tested. In application, the validated model's purpose will be to introduce to businesses and their leadership the paradigm of loyalty as a strategic tool. Furthermore, the model could be used as a foundation to assist in the creation, evaluation and development of loyalty programmes and their business implications in practice.

AFRIKAANSE OPSOMMING: In die afgelope 10 jaar het lojaliteitsprogramme baie populer geword en baie besighede het verkies om sulke programme te implementeer om sodoende hulle bemarkingsstrategie te ondersteun. Die grondslag vir die funksionering en sukses van sulke lojaliteitsprogramme is die vermoe om informasie oor klante te versamel, te verwerk, te ontleed en toe te pas. Sulke informasie word gegenereer deur die klante se interaksie met die programme en die besigheid waaraan die program verbind is, asook die verskeie dienste en diensverskaffers waaruit die programme bestaan. Die doel van hierdie navorsingsprojek is om ondersoek in te stel na die vraag of 'n informasie georienteerde benadering, gegrond op die basis van lojaliteit, gemanifesteer in die wereldwye verskynsel van lojaliteitsprogramme, waarde kan toevoeg vir besighede wat hulle aanneem. Die belang van informasie as die bron van waarde vir enige besigheid in die nuwe ekonomie sal as deel van die ondersoek bespreek word. Dit sal saamgevat word in die argument dat die klant die bron is van inkomstegenerasie en dat die klant die vloei van waarde in 'n besigheidsisteem dryf. Die resultate van hierdie twee argumentlyne sal aantoon hoe die sinergie tussen die klante en hulle informasie, deur die lens van lojaliteitsekonomie, bydra to besigheidswaarde deur die bereiking van kern besigheidsdoelwitte, bv. volhoubare inkomste, groei, wins en mededingende voordeel. Bewyse van hierdie stellings sal verskaf word deur plaaslike en internasionale lojaliteits programme te beskryf en ontleed as gevallestudies wat hierdie benadering weerspieel. Ten slotte sal die verskillende bevindings van die navorsing saamgevat word in die konteks van bestaande, goeie besigheids-, klante- en informasie en kennisbestuur ten einde 'n informasie georienteerde lojaliteitsmodel te skep. Hierdie model se doel is om 'n strategiese raamwerk te skep wat 'n besigheid kan toepas om insig te gee in strategiese besluite en om doelwitte te bereik. In verdere ondersoek buite die bestek van hierdie werkstuk sal die model getoets word. In toepassing is die gevalideerde model se doel om besighede en hulle leiers bekend te stel aan die paradigma van lojaliteit as 'n strategiese hulpmiddel. Verder kan die model gebruik word as grondslag vir die skepping, evaluering en uitbreiding van lojaliteitsprogramme en hulle besigheidsimplikasies in die praktyk.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/15496
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