Enhancing the value of loyalty programmes through multi-sided platforms

Abstract

This research investigated the possibility of using Multi-sided Platforms (MSPs) to connect Service Providers (SPs) and consumers on Loyalty Programmes (LPs) to enhance value proposition. It assessed whether consumers are maximising the value of their LPs and determined their interest in subscribing to an MSP to enhance it. The adoption of LPs by SPs in RSA is snowballing, which brings complexity for consumers to participate fully. Managing LPs from various SPs is complicated without a centralised platform. The inefficient design of LPs impacts participation efforts, affecting consumer engagement. The growth leads to consumers not realising the total value of LPs despite frequent purchases. The research employed a quantitative data collection approach using the Qualtrics platform. The study collected quantitative data through an online survey that utilised a questionnaire with a 5-point Likert scale. The research targeted individuals residing in South Africa (RSA) with LP subscriptions in the grocery and fuel retail sectors. The sample included individuals of all ethnicities, genders, and occupations between the ages of (19 and 60). The study found that the design of loyalty programmes impacts engagement rates, and the technology used on LPs affects participation efforts. According to the study, the current LP designs are inefficient and provide value to SPs only. The research concluded that consumers would adopt MSPs if they are used on LPs and enhance the value they get