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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
Published:November 27, 2025
DOI: 10.56038/ejrnd.v5i1.679
Vol. 5, No. 1

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