LOYALTY PROGRAMS AND CUSTOMER SATISFACTION IN CONVENIENCE STORES IN BARANGAY COMMONWEALTH QUEZON CITY

Abstract

This study examines the relationship between loyalty programs and customer satisfaction in convenience stores located in Barangay Commonwealth, Quezon City. As businesses increasingly utilize loyalty programs to improve customer retention, this research investigates how reward structures, customer engagement, and program consistency influence satisfaction levels. The study also identifies existing gaps in customer interaction and proposes strategies to enhance loyalty programs by improving communication, offering more relevant rewards, and ensuring consistent program execution. Addressing these areas may lead to greater customer loyalty and overall satisfaction. A correlational research design was used to assess the relationship between loyalty program features and customer satisfaction. Data were collected from 50 respondents using a structured questionnaire distributed via Google Forms. The questionnaire measured variables such as reward structure, tier systems, and perceived benefits using a 4-point Likert scale. Descriptive statistics, including the weighted mean, were applied, along with a Pearson correlation analysis and a p-test to determine the statistical significance of the relationships. The results showed an overall weighted mean of 3.42 for customer satisfaction, indicating that respondents generally agreed on the effectiveness of loyalty programs. The highest-rated factor was the perceived value of rewards (3.50), while the lowest was the variety of rewards (3.30). A strong negative correlation (r = -0.769) was found between loyalty program quality and customer satisfaction, implying that improvements in program features significantly increased satisfaction levels. The p-test result (p = 0.001) confirmed that the correlation was statistically significant at the 0.05 level. The study concludes that enhancing loyalty programs, especially by expanding reward options and refining tiered benefits, can significantly improve customer satisfaction in convenience stores. These findings underscore the importance of strategic loyalty program design in fostering long-term customer engagement and retention.