Perceived Benefits from Loyalty Program and its Influence on Relationship Quality

This research was conducted to see how customer's value perceived benefits from the loyalty program at PT ABC (Monetary Savings, Exploration, Entertained, Recognition and Social Benefits) and see how they affect relationship quality through mediating perceived relationship investment. This research was conducted because of the significant customer awareness growth towards the loyalty program which was not accompanied by a significant decrease in the churn rate at PT ABC. In this study, quantitative analysis is used with SEM (Structural Equation Modeling) analysis techniques using Lisrel 8.8 software. Data collection was done through online questionnaires and obtained 200 respondents from various types of products and levels of customer loyalty. Based on the results of data processing, it is known that customer appraisal of perceived benefits variables is somewhat amenable, while customer appraisal of perceived relationship investment variables and relationship quality shows agreed values. And based on the evaluation of the effect proved that perceived benefits have a positive effect on relationship quality by mediating perceived relationship investment variables. In order to get a good relationship quality between the company and its customers, PT ABC needs to increase the benefits of the loyalty program by increasing the type and amount of rewards that can be exchanged by customers, the right reward allocation and segmentation based on the product and the level of customer loyalty and always innovating collection, exchange and expiration schemes of the loyalty program.