The Effectiveness of Loyalty Programs in Enhancing Customer Retention at Megasaver Cabanatuan City: Basis for Marketing Plan

This study explores the effectiveness of the loyalty program implemented by Megasaver Cabanatuan City in strengthening customer retention. It aimed to determine how the program influences customer satisfaction, encourages repeat purchases, enhances perceived value, and builds brand loyalty. The research also sought to identify the factors that influence customer retention, including the types of rewards offered, the simplicity of earning and redeeming points, the effectiveness of communication strategies, and the level of customer trust in the brand. A quantitative method was used, involving a researcher-made questionnaire administered to 250 active loyalty program members. The data were analyzed using frequency, percentage, weighted mean, and correlation analysis. Findings revealed that the loyalty program is generally effective, especially in influencing purchase decisions and satisfaction. However, it also showed that communication strategies and the reward redemption process need improvement. Based on these insights, the researchers proposed a marketing plan focused on improving customer engagement, reward relevance, and the overall ease of using the program. The results confirm that customer loyalty programs, when properly managed and improved based on user feedback, can significantly support long-term customer relationships and business success.