Developing an Effective Customer Loyalty Program

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238 citations0/0 files storedCalifornia Management Review

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Customer Service Quality and Loyalty Consumer Market Behavior and Pricing Customer churn and segmentation

Abstract

Despite the large number of firms offering loyalty programs and their high levels of consumer membership, many of these loyalty programs have not been successful. This article differentiates among four different types of loyalty programs and offers a series of guidelines to assist firms to develop, implement, and control an effective loyalty program. It also describes several potential pitfalls that need to be avoided.

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References

2003Understanding the Effect of Customer Relationship Management Efforts on Customer Retention and Customer Share Development 2000On the Profitability of Long-Life Customers in a Noncontractual Setting: An Empirical Investigation and Implications for Marketing 2000Implications of Loyalty Program Membership and Service Experiences for Customer Retention and Value 1995Capturing the value of supplementary services 2004Balancing Acquisition and Retention Resources to Maximize Customer Profitability 2003Effects of Loyalty Programs on Value Perception, Program Loyalty, and Brand Loyalty 2002Customer Relationship Management: In B2C Markets, Often Less is More 2003The Idiosyncratic Fit Heuristic: Effort Advantage as a Determinant of Consumer Response to Loyalty Programs

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2014Key determinants of passenger loyalty in the low-cost airline business 2011Loyalty Programmes: Current Knowledge and Research Directions*2005Loyalty trends for the twenty‐first century 2014Customer–company identification and the effectiveness of loyalty programs 2019

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