This study therefore aims to determine the effectiveness of the Municipal Payment Incentive Scheme as a loyalty program in the City of Tshwane-Soshanguve. The results obtained in Soshanguve can be applied to other districts in the city of Tshwane as they have similar characteristics.
Statement of Problems
Overall problem statement
In the 2004/2005 medium term budget, the City of Tshwane undertook to improve the current customer collection rate of 96% to 97%. The important question to ask is "Do these programs really create additional loyalty over what is driven by the relative value of the product/service?" (Sloan Management Review.
Null hypothesis and alternative hypothesis
Objectives
Critical questions
- Should the City of T s h w a n e continue with this programme?
- D i d the payment incentive s c h e m e get the desired output from the ratepayers?
- D o ratepayers know about the resident programme?
- Are ratepayers aware of the merchants being used?
- D o ratepayers want to be associated with this loyalty programme of the municipal- ity?
Success can be seen through checking the municipality's accounts and comparing them with different accounting periods. Tliis will assist the research in that the picture of the entire program and organization will be revealed.
Research design
- H o w the literature survey will be conducted
- H o w the research instrument will be designed and standardised
- H o w the collection of valid research data will b e ensured
- H o w the data will be collected
- H o w the data will be analysed
Interviews with the ratepayers will mostly be conducted face to face using the questionnaire. Serving on the pilot committee of the researcher would be an added benefit and no one's job would be at stake.
Overview of dissertation chapters
Part of the results will be computer-aided analysis, i.e. closed questions and open questions will be manually analyzed by the researcher. If the null hypothesis is accepted, the City of Tshwane will be encouraged to use the scheme.
Conclusion
If the alternative null hypothesis is accepted, it means that the organization will not benefit from the plan.
- Introduction
- Programmes used by the City of Tshwane and other Municipalities to im- prove revenue collection
- Relationship building and maintaining loyalty
- Relationship building history
- Loyalty programmes
- Importance of c o m m u n i c a t i o n
- Survey of literature that relate to the elimination of problems already solved by other researchers
- Conclusion
Since loyalty programs foster relationships between customers, this can be both good and bad for the business. The question that is also asked is whether the loyalty programs create extra loyalty beyond that promoted by the value of the product or service (Ibid (1997)).
CITY OF TSHWANE, THE ORGANISATION
- Introduction
- Background history of City of Tshwane
- The Resident programme
- Benefits given by the programme to ratepayers
- Management of "The Resident"
- Conclusion
The City of Tshwane is a Category A municipality, meaning it has exclusive and legislative powers in the designated area (Act Gauteng Types of Municipality Act 2000). The City of Tshwane functions in accordance with political, legal and other guidelines. relationships between political structures, political office holders, administration and the community. The program currently provides telephone access to the math teacher facility at the expense of the city's taxpayers.
RESEARCH METHODOLOGY AND DATA ANALYSIS
- Introduction
- The importance of research design
- Research M e t h o d o l o g y
- A qualitative approach
- Quantitatively speaking
- Focus of strategy
- Sample and population
- Measuring instruments and data collection
- Reliability and validity
- Examination of trends
- Conclusion
Proctor agrees with Saunders et al, stating that a sample should reflect the characteristics of the population of interest for the study (2005:109). The design of the questionnaire was such that it covered both open and closed questions.
PRESENTATION OF RESULTS
Introduction
Analysis of Methodology
- The sample
- Interviewing and Analysis
Demographic Profile of the sample
Most of the respondents 28.2% have high school diploma and tertiary education (28.2%), which shows that Soshanguve is highly literate.
The Resident Programme
- Attitude towards "The Resident" programme
As far as the scheme is known, 48.5% of respondents believe that the scheme is used by most residents with 51.5% saying that the scheme is not used by most residents. Most respondents to the open-ended questions chose not to answer this question. While the scheme is known, 48.5% of respondents believe that the scheme is used by most residents with 51.5% saying that the scheme is not used by most residents.
The evidence above shows that The Resident program is a scheme that most respondents are fairly familiar with. B2.3 Has the introduction of a payment incentive scheme, The Resident, a loyalty program, encouraged you to pay your council bill on time? A majority of 56.7% of respondents who said they did not know if the Resident scheme motivated them to pay agreed with the response, where 51.5% of respondents believed that most taxpayers do not use the scheme.
Marketing and advertising
52.0% of the respondents said that they were not aware of any marketing efforts and 4 8 % said that they were aware. 57.6% of respondents indicated that they could revoke the promotions that had taken place in the past 12 months with 42.4% indicating that they could not revoke. This was followed by TV with 18.4% and thirdly leaflets and meetings were chosen by 9.2% of the respondents.
This was followed by posters and TV with 12.0% of respondents and thirdly leaflets with 9.8%. According to 31.4% of respondents, politicians are best suited for meetings as a medium to market The Resident. Local traders close to the neighborhood of residents were the most preferred with 41.9% of respondents indicating this.
Communication
37.4% of respondents felt that they never received direct communication and this mainly came from department 35. The next question was: "Do you agree with the following statements about the communication of the Resident program?". A clarifying question was asked about what type of information respondents wanted the Resident to communicate to them.
The majority of respondents (63.5%) agreed that the information addressed the problems mosdy was affected by, but 36.5 felt that it did not. 44.6% of respondents said they wanted to be informed monthly, and 43.3% said more often than monthly, while 1 2. Most respondents agree that the information covers what it is supposed to cover and that is important information.
Information about Merchants
64.6% of respondents stated that they had not used the agreed traders; only 35.4% had used them. When asked whether the dealers were easily identified by users, 64.4% agreed that they were easy to identify, while 35.6% of respondents disagreed. 47.3% of respondents agreed that most taxpayers know these traders, while 52.75 said taxpayers do not know these traders.
Taxpayers seem to benefit from using these dealers as 62.1% of respondents agree and 37.9% disagree. F6.1 (a) The introduction of the payment incentive scheme, the resident, has resulted in my motivation to pay on time. 68.7% of the respondents agreed that the payment incentive motivated them to pay on time.
Image associated with the resident programme
The majority of respondents chose the option don't know and indicated in this question that they agree. Statements describing the image of The Resident were given so that respondents either agreed or disagreed. The resident program was found sensitive to the needs of others by 57.5% of the respondents and by 42.5% it was not.
There was agreement among 54.1% of respondents that the program is quick to solve problems, and 45.9% disagreed with dus. 72.3% of respondents believed that the scheme effectively promoted payment for services and 27.7% disagreed. 65.9% of respondents agreed that The Resident was at the forefront of loyalty programs, but 34.1% disagreed.
Conclusion
On the management side, most tire responses did not really address the management of the incentive scheme. However, some respondents indicated that the scheme could best be managed by being accessible in local offices closer to the people. The respondents also clearly supported the scheme by indicating that it effectively promotes payment for services.
Most of the respondents also did not see the logo, which is crucial to identify and establish this relationship with products or recipients.
Introduction
Conclusion and Recommendations
To find out whether the level of payment has improved as a result of the incentive scheme. To determine if there are "new" paying customers who were changed by this program To determine how taxpayers view the scheme. To measure the extent to which the incentives created loyalty among private customers To determine whether the scheme has been sufficiently marketed.
To find out whether ratepayers see the benefits of the incentive scheme to determine preferred communication channels for future use.
52.0% of respondents indicated that they were not aware of any marketing efforts from The Resident campaign, but 57.6% said they could recall the promotions and advertising done in the past twelve months. The recommendation given for the best way to market the payment incentive scheme, The Resident in the suburbs was TV, respondents went further and suggested that the pay channel DSTV could be used. There was a relationship between village dwellers and low income group as the recommendation of the preferred medium was radio for both.
Tins link between townships and low incomes is true as demographic information suggests that 47.1% of respondents earn between R0 - Rl 000. Radio is cheaper for people to own and therefore a useful medium in townships. Advertising and marketing, communication and enhancing the benefits of The Resident program were the ways the respondent believed could improve the scheme's popularity in the open-ended questions.
It can be concluded that there may be a general lack of understanding of what marketing really is, as the researcher found different answers to questions that the researcher believes are related. This suggests that the general perception is that people living in suburbs have money and own such decoders. Local grocers were preferred and there are not that many available in the area, this may be a reason why many people do not use their resident card.
The Resident Program should address the issue of involving more local merchants so that The Resident Program can be better marketed through such merchants. A radio slot could be bought where The Resident program will be discussed combined with service delivery issues. Direct communication to the taxpayer must take place on a monthly basis, where relevant information about the resident can be provided.
LOYALTY 6.2.10 Conclusion
- Conclusion
- Reject or accept the null hypothesis
The image of the program needs to be further developed by anchoring it in people's minds. To find out if the payment levels have not been proven as a result of the incentive scheme. The researcher believes that the incentive scheme is one of the factors contributing to the success of the City of Tshwane's payment levels.
The researcher believes that the scheme was not well marketed as 52.0% indicated that they were not aware of any marketing efforts of the scheme. This is evidenced by the poor knowledge of both the slogan and the logo. g). Taxpayers, according to the researcher, do see the benefits of the scheme, as 76.2% of respondents indicated that it is good to have the scheme and believe that the scheme effectively encourages payment of services. h).
RESEARCH INSTRUMENTS
WAZULIH\!ATAL
QUESTIONNAIRE: "THE RESIDENT" INCENTIVE PAY PROGRAM AS A LOYALTY PROGRAM, MBA UNIVERSITY OF KWA-ZULU NATAL. Please complete this questionnaire for the purpose of an investigation into the effectiveness of the Municipal Resident Payment Incentive Scheme as a Loyalty Program - a case study}' of the Metropolitan Municipality of the City of Tshwane}' with a special focus on the Soshanguves. Mention what you know about the incentive program called The Resident used b\- the Cits' of Tshwane.
Since the Resident Program was established, have you had a more positive or negative attitude toward payment for services? Is sufficient -45- Occurs frequently enough -46- Addresses the issues that concern/interest us most. ii) What kind of information do you need? The Resident Program must communicate with you. The introduction of the De Resident payment incentive scheme has ensured that I am motivated to pay on time.
BIBLIOGRAPHY
Vamate proposal to the City of Tshwane Metropolitan Municipality on the design and implementation of payment incentive scheme.
