A Study on Customer Loyalty in Organized Retailing in M.P

Now a day‟s retail outlets run loyalty program to retain their customers. Loyalty programs encourage consumer to shift from myopic or single-period decision making to dynamic or multiple – period decision making. The current study is empirical research that focuses on the effect of loyalty programs on customer retention in M.P. Fierce competition and complexity of modern business has prompted organizations to strive for creative and innovating strategies to retain customers. As attracting adoptive new customers in the business is far more costly than retaining existing customers; business organizations have started offering lucrative loyalty programmes to retain existing customers. Therefore, the business rewards existing customers and maintain close relationship with them through CRM. The premise of CRM is that once a customer visits the retail outlet he/she is locked in forever. Retaining customers through loyalty programmes provide win-win situation to both the organization as well as customers in M.P.