Key Factors that Enhance Relationships and Perception of Value in a Triangular Reward Programme in South Africa

Abstract

Reward and loyalty programmes form part of area of study of customer relationship management which in-turn forms part of the relationship marketing focus area. Reward programmes are a tool through which customer loyalty can be achieved, if there is sufficient value being generated for the three parties involved in a reward programme (i.e. the reward member, the reward programme, and the reward partner – the triangular reward programme model). Significant research has been conducted on reward programmes and customer loyalty but very few have touched on the various factors that enable a reward programme to generate enhanced value for all parties and in-turn enhance the relationships within the programme. This study will focus on identifying these key factors and linking them to the enhancement of the value being derived from the reward programme environment. Data for this research has been collected through personal interviews with selected leading reward programmes in South Africa, their selected associated partners and selected members. This data was then compared to the findings of the literature review conducted. Key factors identified from each exercise were noted and the value that they generate was described. The key finding from the research conducted was that value for each party in the relationship is different and is dependent on different factors. A balance of these factors needs to be achieved in order for each party to experience an enhanced level of value. Specific key factors are identified and discussed in detail. The key message from this research is that the reward programmes and the reward partners need to work in partnership to provide a valuable reward offering to members who will then be motivated to become active and thus drive profitability. By working together in providing rewards, there will be sufficient value being generated for each party which in-turn will enhance the state of the relationships in this triangular reward programme.