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Unlocking loyalty : A qualitative study on how loyalty programs should be designed to increase Gen Z:s loyalty in fast fashion retail.

Over the last decade, loyalty programs have been emerging more and more and the demand for better offers in exchange for loyalty has been increasing given the rising prices throughout the society. With this, an evolution is required in how brands should design their loyalty programs to retain their customers as well as to attract new customers in fast fashion retailing. Therefore, the purpose of this thesis is to investigate how loyalty programs can be strategically designed to strengthen brand loyalty with Gen Z by examining various aspects such as program structure, rewards and engagement mechanisms. This is because Gen Z is one of the demographic groups most active in the use of loyalty programs and fast fashion. Empirical data was obtained through individual semi-structured consumer interviews, to collect data on how Gen Z perceives and uses loyalty programs. The collected data was analyzed through a thematic approach where different themes were identified to explore experiences and perspectives. Furthermore, the collected empirical data is analyzed using theory where similarities and differences are discussed. The conclusion of this thesis showed that in order to develop brand loyalty among Gen Z using loyalty programs, developers should put a strong focus on the financial benefits included in the programs. However, many of the interviewees preferred personalized offers and rewards shaped by their personal data. The thesis did not provide specific answers on how loyalty programs should be designed, however that they should be tailored to the customer using them and that brands should make use of the customer data they collect.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:lnu-129770
Date January 2024
CreatorsPersson, Elise, Olsson, Lovisa
PublisherLinnéuniversitetet, Institutionen för marknadsföring och turismvetenskap (MTS)
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess

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