Empirical Study Of The Impact Of The Point Reward Program On Customer Loyalty In Telecommunication

After the telecom industry restructuration, the three operators enters into the era of full-service competitive, and telecommunication market tends into the condition of homogenization competition, so increasing customer loyalty becomes an important means of marketing and competition, at the same time, the telecommunication companies need to address this important issues. Points reward program is a method to improve customer loyalty. Currently, the three telecom operators have established their own points reward program to enhance customer loyalty, how the reward programs affect customer loyalty and whether those can enhance customer loyalty or not still need to study deeply.This paper takes the theory of enterprise reward programs and customer loyalty as research objectives, focusing on the relationship of point reward program’s economic function value and social emotional value, customer switching costs, customer satisfaction, customer behavior loyalty and brand loyalty in telecommunication industry. Based on this, the paper builds a mechanism model of how telecom operators’point reward program affects customer loyalty. Through the empirical research, the paper explores the impact factors and impact path of point reward program to the customer loyalty.In the empirical process, the paper tests and verifies the mechanism model of how the reward program affects customer loyalty, and ultimately reveals the effective mechanisms of the point reward programs to customer loyalty. That is to say, economic function value takes the customer satisfaction as intermediate variable and has an effect on customer behavior loyalty and brand loyalty; social emotional value takes the customer switching costs and customer satisfaction as intermediate variables to affect customer behavior loyalty and brand loyalty. The results provide a theoretical guidance for telecom operators to develop customer loyalty.Based on the above analysis, in the end this paper points out the major problems existing in the telecom operators’point reward programs and the key elements affecting success of point reward program from the perspective of telecom operators, based on empirical findings and the current status, the paper proposes some targeted recommendations for the telecom operators. All of these work provides a practical guide for the telecom operators’point reward program.