DESIGNING EFFECTIVE LOYALTY PROGRAMMES FOR ENHANCING CUSTOMER RETENTION IN THE NIGERIAN HOSPITALITY INDUSTRY
Keywords:
Loyalty Programmes, Points-Based, Tiered, Value-Based, Customer Retention, Hospitality Industry.Abstract
This study examined the role of loyalty programmes in enhancing customer retention in the Nigerian
hospitality industry in Ilesa, Osun State. A cross-sectional survey design was adopted, and data was
collected using a structured questionnaire. Descriptive statistics revealed that respondents generally
perceive loyalty programmes positively, with value-based programmes having the highest perceived
impact. Points-based, tiered, and value-based loyalty programmes all have positive and significant
relationships with customer retention. The study concludes that loyalty programmes are effective in
promoting long-term commitment. The study recommends that hotels integrate points-based, tiered,
and value-based programmes strategically, to enhance customer retention and achieve sustainable
competitive advantage.
