Designing a Customer Loyalty Program

Loyal customers are very important in increasing the performance of a company. One way to generate loyal customers is by implementing a loyalty program. This study designs a loyalty program that meets customer preferences for a small enterprise that sells hijab online. Preferences of loyal customers were identified using choice-based conjoint analysis because this method can provide increased realism in the evaluation of an object. Two schemes of the loyalty program are generated. Economic analysis shows that by implementing the loyalty program, the company needs 36% of loyal customers to achieve the same amount of revenue.