Advisers

Jennylene A. Abalos

Discipline

Marketing

Abstract

This study explores the relationship between promotional offers and customer retention at Spanda Massage and Spa. Founded in 2017 as a home-based massage service, the business initially struggled with increasing sales and attracting a stable customer base. In response, Spanda conducted market research and introduced targeted promotional strategies. The study examines specific promotional tools such as discounts, loyalty cards, bundled service packages, and seasonal offers. It also investigates key elements of customer retention, including service quality, customer satisfaction, cost-effectiveness, and overall convenience. This study adopted a quantitative correlational research design, utilizing a survey questionnaire to collect data. Statistical tools such as weighted mean, ranking, and Pearson correlation were used to assess the relationship between promotional offers and customer retention. The researchers employed purposive sampling, a non-probability technique, to select participants who had availed of promotional offers from Spanda Massage and Spa. This ensured that the respondents could provide meaningful insights into their experiences and loyalty toward the business. The results revealed that customers place high value on receiving greater benefits through discounted rates (weighted mean: 3.72), and they appreciate being rewarded for their loyalty through repeat visit incentives (weighted mean: 3.67). Bundled services were also favored for offering convenience in experiencing multiple treatments (weighted mean: 3.62), and many respondents expressed a preference for visiting the spa during promotional periods (weighted mean: 3.66). In terms of customer retention, a clean and calming environment was seen as a key indicator of service quality (weighted mean: 3.78). High levels of customer satisfaction also contributed to strong word-of-mouth recommendations (weighted mean: 3.72). Additionally, competitive pricing without compromising service quality (weighted mean: 3.68) and the availability of bundled packages (weighted mean: 3.70) further supported customer loyalty. Hypothesis testing showed a very strong and positive correlation between promotional offers and customer retention, with an r-value of 0.875 and a p-value of < 0.0001, indicating a statistically significant relationship at the 0.05 level. The researchers recommend that Spanda Massage and Spa adopt a targeted promotional strategy to improve customer retention. These recommendations focus on maximizing the impact of promotional offers to deliver a more rewarding customer experience, encourage consistent patronage, increase revenue, and cultivate lasting customer loyalty.

Keywords

service quality, customer satisfaction, customer retention, promotional offers, spa marketing, bundled services