In the context of Bangalore North—especially suburban areas like Kothanur—there is a unique blend of large retail chains and smaller, local businesses. Both pharmacies and supermarkets in this region face stiff competition, and retaining customers through well-designed loyalty programs can be a decisive factor for long-term success. However, the actual impact and effectiveness of these programs in semi-urban Indian settings remain under-researched. This study aims to bridge that gap by exploring how loyalty programs influence customer behavior, satisfaction, and retention in pharmacies and supermarkets in Bangalore North. It investigates customer preferences, demographic variations, and program design factors that contribute to the success or limitations of loyalty strategies.