Annotated Summary


Hou C, Chen YX (July 2019) A Study of the Impact of Membership System on the Customer Loyalty. Atlantis Press. Doi: https://doi.org/10.2991/icmesd-19.2019.7. 

This article introduce on how membership system will have an impact on the customer’s loyalty and it discusses on how membership system had been one of the most productive sale promotion approach in the past two decade. The article stated that membership system are regarded as one of the most familiar and competent methods to allow a company to achieve a high rates of customer loyalty. Customer loyalty is defined as how a customer defined as how a customer will continue to buy the goods and services from one company for a long period of time. Based on a business study, the article also reported that when a customer loyalty increases by 25%, the corporate profit increases by about 25% - 85%. At the same time, the article surveyed that 75% of the customer are willing to promote the membership card to the people around him/her, which can be considered as a free advertisement effect.

This article provides us an understanding of how a good membership system will induce a good customer loyalty system. With customer loyalty, the customer will trust the company due to its reputation and the benefits that they received, they will help to advertise to their circle of friends and relatives for free as they want to share the benefits with them. This information will usually be more trusted as they comes from the personal experience of someone that they knows, which will interest the customer to try eventually increases the number of members.  This is related to my research topic as we are researching on how to persuade customers to sign up for the membership system proposed inside our project as the goal is to increase the number of users using our One-Stop trolley which will creates an efficiency shopping experience.

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