Purpose                           

The purpose of this study is to create an understanding of how e-commerce companies use loyalty programs in order to retain their customers and to increase its consumption, and compare this with customer perceptions of loyalty and learn what makes them loyal.

Theoretical framework     

The theoretical framework starts with definitions of loyalty and customer loyalty. Further, it discusses what a loyalty program is, how rewards today and in the future affect the consumers, and other promotion offers that are commonly used. The theory also discusses how previous points work in e-commerce.

Method                                                   

To take advantage of the companies’ point of view and at the same the customers’ perspective, the survey is based on a combination of a qualitative and quantitative study. In the study, two companies in the fashion industry were interviewed and 391 respondents participated.

Empirical study                

In the empirical study the interviews with the two e-commerce companies are first presented, which revolves around their use of loyalty program. It´s followed by a presentation of the results from the quantitative study with 391 respondents, where we took part of their view of customer loyalty.

Conclusion                       

E-commerce companies are using a combination of SP and CRP in their loyalty programs and it is important to adapt to a changing market. According to the customer group loyalty is based on a lot of confidence in the company and the customers often focus on the deal that is most affordable for them right now. Loyalty is also based on other aspects such as customer service and security, which is provided for loyalty programs to work.