LOYALTY PROGRAM OF COFFEE 25TH IT'S IMPACT ON CUSTOMER RETENTION; BASIS FOR ENHANCED PROMOTIONAL PLAN

Abstract

This study aims to assess the relationship between Coffee 25th’s loyalty program and customer retention in Camarin, Caloocan City. The research examines demographic factors such as age, gender, marital status, and employment status to determine their influence on customer loyalty. Utilizing a descriptive-correlational research design, the study explores how loyalty programs affect customer retention. A total of 100 customers of Coffee 25th participated in the study. This study employed a purposive sampling technique, selecting respondents who have availed of Coffee 25th’s loyalty cards in Camarin, Caloocan City. The research method involved collecting and analyzing data to establish patterns and correlations between the loyalty program and customer retention. The majority of respondents were 26-30 years old, female, single, and employed. Findings indicate that the loyalty program significantly influences customer retention. However, several respondents encountered issues that affected their continued participation in the program, highlighting areas for improvement. To enhance customer retention, Coffee 25th should improve program clarity, simplify terms and conditions, and offer more flexible reward options. Addressing customer concerns and optimizing the loyalty program will strengthen brand loyalty and customer satisfaction.