The effectiveness of loyalty schemes in increasing customer retention and profitability within the UK fast food industry --- a Subway's franchise case study.

Student, A. (2015) The effectiveness of loyalty schemes in increasing customer retention and profitability within the UK fast food industry --- a Subway's franchise case study. UNSPECIFIED thesis, UNSPECIFIED.

View this record at http://eprints.chi.ac.uk/1453/

Abstract

The dissertation explores the effectiveness of loyalty schemes within the UK fast food industry as a means of both improving customer retention and increasing profitability. The main method of research is primary research through 30 questionnaires completed by existing Subcard members and a separate focus group made up of 5 participants collating general views about customer loyalty. The findings of the research indicate that the creation of a loyalty scheme does, to some extent, encourage participants to visit Subway more frequently. Those that are frequent visitors are generally more satisfied with the scheme, which creates a cyclical effect in that increased satisfaction leads to more visits. The evidence indicating that loyalty schemes lead to increased profitability is inconclusive. The questionnaires show no connection between loyalty card membership and increased spend per visit. However, the fact that some customers visit on a more frequent basis might indicate that more revenue is generated. Further analysis is required to understand whether increased revenue translates into greater levels of profitability taking into account the costs of running a loyalty scheme. In addition to this, although the Subcard exemplifies how a loyalty scheme can operate in the fast food industry the research notes that other more traditional chains such as McDonalds might not be able to replicate this model as speed of service is a unique selling point which might be affected if customers are asked to sign up to a loyalty scheme whilst at the cashpoint.

Item Type: Thesis
Keywords: HC Economic History and Conditions, HG Finance
Members: University of Chichester
Depositing User: ULCC Admin
Date Deposited: 08 Nov 2016 13:00
Last Modified: 08 Nov 2016 13:00
URI: http://collections.crest.ac.uk/id/eprint/11867

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