Loyalty Card Membership Challenge: A Study on Membership Churn and their Spending Behaviour





Understand member spending behaviour and their loyalty is important in all industries. By gaining loyalty from customers and understand how they spend, companies are able to retain their customers, increase their revenue and plan their marketing strategy to continue grow their business in a competitive business ecosystem. This research investigates member spending behaviour and membership churn for a loyalty card company in Malaysia. This research conducts exploratory analysis on three key partners registered with the company to understand their outlets’ spending activities and patterns. Meanwhile, this research also model membership churn based on the last 24 months membership data to identify factors that influence membership churn so that effective strategy can be formulated to retain active members in the company.   

Author Biographies

Tong-Ming Lim, Sunway University, Malaysia.

Prof, Department of Computing and Information Systems

Head, Centre for Innovation and Industry Linkage

Sunway University

Angela Siew Hoong Lee, Sunway University

Chair, Programme Chair, Business Analytics

Department of Computing and Information Systems

Sunway University



Barnard, A. (2002). Feedback Seeking in Customer Service Relationships. [online] Available at: http://citeseerx.ist.psu.edu/viewdoc/download

Barlow,J. & MollerC. (1996) A Complaint is a Gift: Using Customer Feedback as a Strategic Tool. [e-book] San Francisco: Berrett-Koehler Publishers. Available from: https://books.google.com.my/

Bholat, D., Hansen, S., Santos, P., & Bailey, C.S. (2015) Text Mining for Central Banks. Centre for Central Banking Studies.

Blake, C. (2011) Text Mining. Annual Review of Information Science and Technology.

Chakraborty,G., Pagolu. M. & Garla, S. (2013) Text Mining Analysis: Practical Methods, Examples, and Case Studies using SAS. Cary, NC: SAS Institute Inc.

Chinsha,T.C. & Joseph,S. (2014) Aspect Based Opinion Mining from Restaurant Reviews. International Journal of Computer Applications.

Dalmolen, S. (2010). Defining patterns in unstructured manifests in a volatile cross-domain environment. [online] Available from: http://www.cs.rug.nl/~aiellom/tesi/dalmolen.

Dominici & Guzzo (2010), Customer Satisfaction in the Hotel Industry: A Case Study from Sicily, International Journal of Marketing Studies, 2(2).

Fan, W., Wallace, L., Rich,S. & Zhang, Z. (2006) Tapping the Power of Text Mining. Communication of the Ach. [Online]. 49(9), 76-82. Available from: http://dl.acm.org/citation.cfm?id=1151032

Godden, S. & Pollock, A.M. (2009) Waiting List and Waiting Time Statistics in Britain: A Critical Review. Public Heath [Online] 123, 47- 51. Available from: www.elsevierhealth.com/journals/pubh.

Gupta, V. and Lehal, G. (2009). A Survey of Text Mining Techniques and Applications. JOURNAL OF EMERGING TECHNOLOGIES IN WEB INTELLIGENCE, 1(1).

Hendry, S., & Madeley, A. (2010) Text Mining and the Information Content of Bank of Canada Communications. Bank of Canada. [Online] Available from: https://core.ac.uk/download/pdf/6699593.pdf

Hotho, A., Nurnberger, A. and Paab, G. (2005). A Brief Survey of Text Mining. [online] Available at: http://www.kde.cs.uni-kassel.de/hotho/pub/2005/hotho05TextMining.pdf

Lau, K., Lee, K. and Ying, H. (2005). Text Mining for the Hotel Industry. 46(3).

Lavrakas, P.J (2008). Encyclopedia of Survey Research Methods. 2nd Edition. California. Thousand Oaks, Calif.

Liu, B., (2012). Sentiment Analysis and Opinion Mining. Sentiment Analysis and Opinion.

Mattila & Neill n.d, Relationship between Hotel Room Pricing, Occupancy, And Guest Satisfaction: A Longitudinal Case of a Midscale Hotel in United States.

McLoughlin. P (2013), Review of Measure to Reduce Costs in the Private Health Insurance Market.

Oja, P. (2010). Significance of Customer Feedback An Analysis Of Customer Feedback Data In A University Hospital Laboratory. [online] Available at: http://jultika.oulu.fi/files/isbn9789514262739.pdf.

Vinodhini, G., Professor, A. & Chandrasekaran, R., (2012). International Journal of Advanced Research in Computer Science and Software Engineering Sentiment Analysis and Opinion Mining: A Survey., 2(6).




How to Cite

Lim, T.-M., & Lee, A. S. H. (2017). Loyalty Card Membership Challenge: A Study on Membership Churn and their Spending Behaviour. Archives of Business Research, 5(6). https://doi.org/10.14738/abr.56.3054