A Comparison of Loyalty Programs of Two Lifestyle Retail Stores Using the Net-Promoter Score Method

The proliferation of loyalty programs is definitely an indicator of their popularity. Loyalty Programs have been around for years and their effectiveness has been the topic of research for decades. A lot of research work has been carried out outside India on the various aspects of these programs. Researchers have searched long for a simple method to judge how much loyalty these programs actually generated. But a consensus could not be reached and the opinions remained divided. This article uses a simple method (Net Promoter Score method) to find out how much credibility, two popular department stores in the NCR, have been able to earn from its existing members. The Net Promoter Score or NPS method was proposed by F. F. Reichheld in his publication, ‘The One Number You Need to Grow' that appeared in the Harvard Business Review in the year 2003. It is by far one of the simplest methods to judge the popularity of any program. The result suggests a positive attitude by a good number of customers towards the loyalty programs but there is obviously room for a lot of improvement and growth