Dissertation: Digital loyalty programs of companies significantly influence loyalty, with their effectiveness largely dependent on the context
Digital loyalty programs have evolved into crucial elements of customer relationship strategies, offering enhanced customer engagement, and strengthening brand loyalty. By 2029, the loyalty management market is expected to hit $24.44 billion, growing at a 23.5% annual rate, underlining their critical role in boosting customer loyalty and profitability (Fortune Business Insights, 2022). Companies like Nike, Starbucks, and Sephora have pioneered these programs, which go beyond rewarding purchases to building real customer connections.
M.Sc. Muniba Rauf’s dissertation delves into the evolving perspective of digital loyalty programs or membership program and their influence on customer loyalty across both traditional (i.e. apps) and emerging platforms, including social media and the metaverse. It consists of four studies: the first provides a detailed look at how technology integrates at different stages of loyalty programs. The next two studies use quantitative surveys to explore how rewards for social media engagement affect loyalty of members within these digital platforms and last study uses qualitative interviews to analyse how customer engagement and reward preferences vary across platforms like program apps and the metaverse.
The findings confirm that loyalty programs significantly influence loyalty, with their effectiveness largely dependent on the context.
- This research highlights the necessity for seamless integration of loyalty strategies with social media and metaverse tactics, which is essential for the success of these programs. It also stresses the importance of personalization and understanding customer preferences, especially regarding rewards, says Muniba Rauf.
The dissertation reveals variations in the impact of rewards, with a preference for non-monetary rewards over monetary ones in emerging platforms like the metaverse, indicating changing consumer expectations.
- While traditional loyalty programs have a stronger impact on loyalty than those in the metaverse, engagement on the latter is mostly not influenced by rewards but by other factors like prior gaming experience, usability, and trust.
Overall, Muniba Rauf’s dissertation work offers valuable insights for companies aiming to enhance customer engagement and loyalty through innovative digital strategies and tools, reflecting the shifting dynamics of consumer behavior across different platforms.
Public examination event
M.Sc. Muniba Rauf defends her doctoral dissertation "Understanding Customer Behaviour across Diverse Digital Loyalty Programs" on 7 June at 12.00 in the Agora building (Auditorio 2).
Opponent is Associate Professor Joni Salminen (University of Vaasa) and Custos is Professor Heikki Karjaluoto (Ä¢¹½Ö±²¥). The doctoral dissertation is held in English.
