The main objective of this research paper is to examine the influence of customer loyalty programs on customer satisfaction and also its influence on customer loyalty. This Loyalty program is organised by the company itself in order to maximize customer satisfaction and to maintain customer loyalty. Customer loyalty is beneficial for company as it helps company to maintain its income constantly optimal. Shopping Partners Program, Gifts Redemption, Insurance coverage, Member card and Special price has significant effects on customer satisfaction. On the other hand, Members Day, magazine, discount promo, does not influence customer satisfaction significantly and it also does not have any effect on customers loyalty level.This study gives ideas to retail business managers how to develop customer loyalty programs in order to ensure customer satisfaction and customer loyalty.