Mastering the Process of Change

Abstract: Thesis Purpose: The purpose of this study is to increase the knowledge and understanding surrounding changes in loyalty programs. The aim is to further examine how a change in loyalty programs affects customer expectations and loyalty. The study also intends to shed some light on how retailers might handle a change in a loyalty program whilst keeping their customers satisfied. Methodology: This study is a qualitative research with an abductive research approach. A single case method was used together with semi-structured interviews to fulfill the purpose of this study. The chosen sampling method was purposive - and convenience sampling. Theoretical Perspective: The theoretical framework is mainly based on the Satir Change Process Model. This model was mostly used as a reference and a guide for the researchers to understand how the customers react to changes in loyalty programs, and further use it to manage the effect of change on customers. Empirical Data: The data was collected through the chosen case study of ICA which focuses on their new loyalty program ‘stammis’. In addition, twelve semi-structured interviews were conducted to create an understanding of the chosen phenomenon. Findings: The findings include a new guideline that the researchers created through analyzing the empirical data in accordance with the theory. This guideline can be used as a tool for retailers and managers when they make a change in a loyalty program. Practical Implications: The provided guideline can be helpful for retailers and managers that use various versions of loyalty programs. The result can also be helpful in other settings and sectors that use loyalty programs, such as the travel industry and the financial sector.