LOYALTY PROGRAM DESIGN BASED ON SYAMAITA’S CUSTOMERS PREFERENCES

• Main Author: Hamnah
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/43398
• Institution: Institut Teknologi Bandung

Eversince the emergance of many hijab user communities in Indonesia in 2010, trend of using hijab among Indonesians is increasing. In early 2016, hijab business in Indonesia reaches 7% growth. This number will be pushed by the government until it reaches 10% as Indonesia projected to be global hijab fashion center in 2020. Syamaita, as an online business that produce and sell hijab, see this as an opportunity to grow their business but also a threat that many new competitors will be attracted to enter this sector. Therefore, strategy is needed to make them sustained in hijab market. One of it by retaining old customers through implementing loyalty program to Syamaita business. This study is done to understand Syamaita’s customers preference towards loyalty program. Data collection is done online using social media directly to each respondents. This study is using non probability sampling which is judgemental sampling. Customer’s preference is estimated using choice-based conjoint (CBC) method. Hierarchical Bayes (HB) is used as estimation method to get importance and part-worth value for each respondents. Cluster analysis is done using agglomerative hierarchy technique. Loyalty program recommendation consist of part-worth of every individu and simulated using choice simulator to get market share estimation. Simulation result is used to design Syamaita’s loyalty program. Recommended loyalty program is chosen based on efficiency of estimated market share coverage, implementation feasibility, and Syamaita’s management preferences. Based on the study among 152 respondents, 4 cluster of customers are identified. The four cluster like immediate reward. Cluster 1 prioritize shopping voucher and like reward with high value. Cluster 2 prioritize gift and like reward with high value. Cluster 3 prioritize gift and like reward value low or high. Cluster 4 prioritize gift and like reward with lower value. Suggested loyalty program is preference combination of cluster 1,3, and 4. Loyalty program that is recommended for Syamaita is using point system to be redeemed with various type of reward such as, 25% discount or 60% discount, shopping voucher worth Rp25.000 or Rp60.000, and gift in a form of Syamaita product that could be redeemed immediately. Before being a member, customer have to register some personal data and get e-loyalty card. Information distribution regarding loyalty program will be conducted through Syamaita’s public accounts and direct message to each loyalty program members..