The adoption of digital loyalty programs through fintech: an analysis of Moroccan SMEs through transaction cost theory

Abstract

This paper examines the adoption of digital loyalty programs via fintech by Moroccan SMEs, utilizing Williamson's (1975) transaction cost theory. The objective is to understand how technologies such as mobile applications and blockchain can optimize customer-business relationships by reducing transaction costs related to information, monitoring, negotiation, and automation. The study demonstrates that immediate access to promotions and rewards helps decrease information asymmetries, while automation reduces human errors and administrative costs. Blockchain enhances transparency and trust through increased traceability, while the simplification of exchanges facilitates interactions between the business and its customers. The analysis is based on a Tobit model to measure the intention to adopt these programs using a Likert scale, applied to a sample of 311 Moroccan SMEs operating in various sectors. The results reveal that reducing information costs, automation, blockchain, and the simplification of exchanges have a significant and positive effect on the adoption of programs. In contrast, strengthening loyalty through the accumulation of points and rewards does not have a significant effect. Larger companies and those from technological sectors more readily adopt these programs, and competition appears to be a stimulating factor. This study recommends tailored support policies, especially for small businesses, to facilitate their digital transition. By optimizing customer relationships and reducing economic frictions, these programs enable SMEs to better adapt to market dynamics and improve their overall performance.