Factors Driving Customer

The South African food retail sector is extremely competitive, where highcustomer churn and pressures on margins are common and are often linked.Structured marketing efforts such as a customer loyalty programme can play akey role in increasing customer retention of profitable customers whilstpromoting profitable behaviour. Food retailers in South Africa are awakening tothe benefits of introducing such programmes, but it has still not widely beenadopted.A questionnaire-based survey was conducted amongst customers ofWoolworths Food in Gauteng. Customers were asked various questions onaspects of satisfaction, loyalty and the Woolworths Difference Card loyaltyprogramme.The findings of this research indicate that within the food retail sector customersatisfaction is a key driver and precursor to customer loyalty. In addition,participation by customers in a customer loyalty programme further enhancedcustomer loyalty. Customers consider five dimensions when joining a loyaltyprogramme. These dimensions are ‘Sense of Belonging’, ‘Rewards’, ‘Ease ofUse’, ‘Accessibility’ and ‘Preferred Benefits’. This research should be of value tocompanies intending to launch or have existing customer loyalty programmeswho are debating the implementation, modification or discontinuation of theirloyalty programmes.