Customer's Preference Toward Banking Customer Clubs Rewards by Conjoint Analysis

As a main component of customer relationship management (CRM), loyalty program has become a tool for managers to create loyalty among customers. Loyalty programs are implemented, to retain profitable customers that are valuable to the company. This investigation is developed to identify customer preferences toward customer clubs rewards and benefits in banking industry in Iran. In this study, we will answer three questions: First, between features of customer clubs rewards, which ones is more important for customer’s decision and inference. Second, financial rewards are more attractive or nonfinancial? Direct rewards are more attractive or indirect benefits? Surprising rewards are more attractive or non-surprising rewards? And last, what is the impact of demographic variables on customer’s inference toward rewards. Questionnaire was used to collect data. To answer the questions, conjoint analysis is used. The population is the client of Parsian Bank in Tehran. Result shows financial, direct and surprising rewards are more attractive than non-financial, indirect and non-surprising rewards. Also, financial/non-financial aspect of rewards is more important than direct/indirect and surprising/non-surprising aspect of rewards.