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A Decision Support Framework for Customer Loyalty Program Managers: Reward Mix Optimization

Ayşe Salı1✉,
Sahika Koyun Yilmaz2,
Meryem Ezgi Aslan3,
Gizem Temelcan Ergenecoşar4
1Metric Software and Consultancy
2a:1:{s:5:"en_US";s:42:"Metric Bilgisayar Yazılım ve Danismanlik";}
3Yildiz Technical University
4Beykoz University
Received:Oct 13, 2025→Accepted:Nov 20, 2025→Published:November 27, 2025
DOI: 10.56038/ejrnd.v5i1.679
Vol. 5, No. 1
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A new framework helps customer loyalty program managers design effective programs by balancing rewards' attractiveness and cost.

Researchers developed a framework to aid customer loyalty program managers in designing effective programs by optimizing the mix of rewards. The framework considers both the attractiveness of rewards to customers and the unit cost to the organization. This approach can help managers make informed decisions and create programs that are both appealing to customers and cost-effective for the business.

Abstract

Customer Loyalty Programs are a proven methodology for establishing and maintaining customer relationships. With the development of mobile technologies and the power of digitalization, what was once a simple punch card has now evolved into a full-fledged mobile application. The paradigm shift has opened up research areas on an individual customer level, especially in non-contractual traditional commerce, which was previously impossible due to a lack of loyalty data. The cost and budget of Customer Loyalty Programs increase with their strategic value. Balancing the attractiveness of a reward to the customer with the unit cost to the organization is essential for designing effective programs. In this study, we propose a framework that combines the attractiveness and unit cost of rewards to provide an optimized reward mix, thereby aiding Customer Loyalty Program managers in their decision-making processes.

Keywords
Convex OptimizationCustomer Loyalty ProgramsMulti-Layer PerceptronPerceived ValueUnit Reward Cost

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Cite This Article
Salı, A., Yilmaz, S. K., Aslan, M. E., Ergenecoşar, G. T. (2025). A Decision Support Framework for Customer Loyalty Program Managers: Reward Mix Optimization. *The European Journal of Research and Development*, 5(1), 228-245. https://doi.org/10.56038/ejrnd.v5i1.679

Bibliographic Info

JournalThe European Journal of Research and Development
Volume5
Issue1
Pages228–245
PublishedNovember 27, 2025
eISSN2822-2296

Indexing & License

Open AccessCC BY 4.0CrossRef DOIORCIDOAI-PMH

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