A dual-phase financial strategy for sustainable customer loyalty: Integrating fixed deposits and voucher systems in Sri Lankan supermarket retail

Abstract

This study develops and evaluates an innovative dual-phase customer loyalty strategy for Sri Lankan supermarkets, integrating fixed deposit investments with voucher-based reward systems to enhance both customer engagement and sustainable business profitability during festive seasons. The research employs a mixed-methods approach, combining financial modelling using the EBITDA framework, customer surveys (n = 250) to analyse spending patterns, and a hypothetical case study with 1,000 participants to assess the strategy's viability during Christmas 2023. The dual-phase model generated projected returns of Rs. 19,135,035.44 from fixed deposits (a 6.3% gross profit margin) and a Rs. 1,113 markup profit per voucher participant, resulting in an overall EBITDA gross profit of Rs. 2,248,035.44 for 1,000 participants. The study contributes to retail management literature by proposing a novel integration of customer investment programs with loyalty systems, extending existing loyalty program theory to emerging market contexts and seasonal retail dynamics. The framework provides retail managers with a structured approach to capitalise on seasonal demand while building long-term customer relationships, particularly applicable to emerging markets where traditional loyalty programs may be insufficient.

Sustainable Development Goals (SDGs): SDG 8: Decent Work and Economic Growth; SDG 9: Industry, Innovation, and Infrastructure; SDG 12: Responsible Consumption and Production