| Summary: | Today’s globalization increases the competition among companies and on this basis the value of maintaining good customer relations has come into focus. A shift has been made from the traditional transaction marketing, and product focus, to relationship marketing. Thanks to the development within information technology in recent years relationship marketing has moved forward. Improved data systems enable companies to store and use relevant information regarding their customer base. A popular way of collecting useful information in order to strengthen the relationship with the customer, and thereby increase profitability, is to invest in a customer loyalty program. The aim of this study is to increase understanding of the impact of customer loyalty programs on customer loyalty. This will be done through a comparison of the desired outcome of a customer loyalty program from a company perspective versus the perceived effects on loyalty from a consumer perspective. A case study was conducted at the Elite Hotel in Luleå where eight members of the hotel chain's loyalty program were interviewed regarding their view on the impact their membership has on perceived customer loyalty. In order to analyze the data the theory of Customer Relationship Life Cycle (Peel, 2005) where combined with Customer Relationship Profitability (Storbacka, Strandvik, & Grönroos, 1994). The conclusion drawn is that customer loyalty programs create customer loyalty in interaction with the appropriate service personnel. Validerat; 20110927 (anonymous)
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