Author(s): Edwin Agwu
Businesses understand that having a strong base of loyal customers is a necessary ingredient for their market and financial success. With this acknowledgement, they channel resources towards the design of initiatives and strategies that helps them to secure customers’ loyalty. Among these, loyalty card schemes out-shines all others when the number of businesses and customers that have keyed into it is considered. Despite this, scholars and practitioners are divided about the effectiveness of the scheme in encouraging customer loyalty. In this regard, the study analyzes the scheme to determine whether the scheme is truly a strategic tool in building customer loyalty. The study does this exploratively by reviewing various literature on the subject matter and at the end concludes that LCS is a sure need for organizations.