Programs to secure customer loyalty have been used by marketers for many\nyears. However, how effective are these programs? More than 50% of marketers\nsaid that their loyalty budgets rise during the past two years, while only\n10% saw a reduction in budget. This reflects the increase of loyalty programs\nattracting frequent buyers for everything from food to clothing to entertainment.\nThe main aim of this paper is to identify what extends customer loyalty\nprogram work in customer retention, customer engagement, and revenue\ngeneration in airlines business taking example of Air Berlin. This paper adopts\na single case study design. Relationship management and customer loyalty\ntheory are the theoretical foundations used for evaluation of the aspects of\nloyalty program effectiveness. It is concluded that though Air Berlin has been\nsuccessful so far to implement their customer loyalty programs, retaining the\ncustomer loyalty can only be possible by being competitive over the other\nplayers in the market because customers will look for alternatives on the basic\nservices and that reduces the influence of the drivers that keeps the customers\nloyal to one single company.
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