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Fierce competition and complexity of modern business has prompted organizations to strive for creative and innovating strategies to retain customers. As attracting new customers in the business is far more costly than retaining existing customers; business organizations have started offering lucrative loyalty programmes to retain existing customers. The current study is empirical research that focuses on the effect of loyalty programs on customer retention with reference to Mega Mart Retail outlet. The data for the study was collected from Mangalore region from the customers who physically visited Mega Mart retail outlet for buying their products. The results indicated that loyalty card programme has resulted in an increase in their purchases from the outlet and customers use loyalty cards most of the time while making their purchases.

The Impact of Loyalty Cards in Retaining Customers: A Study with Reference to Mega Mart Retail Outlet in Mangalore City