Loyalty Programs: Generalizations on Their Adoption, Effectiveness and Design

Advancing research on loyalty programs: a future research agenda

“…Advancements in technologies and business practices propel rapid new developments in the LP arena and present opportunities for fruitful future research. The main objective of this paper is to identify missing links in the literature and to craft a future research agenda to advance LP research and practice rather than to review the existing literature (for this, we refer the reader to reviews by Bijmolt et al 2011;Liu and Yang 2009;McCall and Voorhees 2010). Table 1 summarizes the future research questions we identified in three key areas: (1) LP designs, (2) Assessment of LP performance, and (3) Emerging trends and the impact of new technologies.…”

“…Prior research has investigated the reward form (monetary vs. non-monetary), aspirational value (luxury vs. necessity), brand-reward compatibility (related vs. unrelated), and the reward timing (immediate vs. delayed), among other topics (see reviews by Bijmolt et al 2011;Liu and Yang 2009;McCall and Voorhees 2010). The other four design components, in contrast, have more missing links and thus present greater opportunities for future research.…”

“…Hence, an LP allows a firm to monitor and influence consumer choices. Excellent reviews of the LP literature are provided by Bijmolt, Dorotic and Verhoef (2011), Liu andYang (2009), andMcCall andVoorhees (2010). Rather than replicating these reviews, the objective of this paper is to identify missing links in the literature and craft a research agenda to advance LP research and practice.…”

The effect of loyalty program fees on program perceptions and engagement

“…Insert Figure 1 about here Loyalty program structures vary dramatically and can affect consumers' purchase frequencies and volumes (see Bijmolt, Dorotic & Verhoef, 2010 Kivetz, 2003), behavior before and after redemptions (e.g. Nunes and Drèze, 2011), and the redemption policy of rewards (e.g.…”

Customer Relationship Management (CRM)

“…While these programs can be traced to the "frequentflyer" programs started by airlines in the 1980s (Kopalle and Neslin, 2003), they have become more widespread and commanded more attention during the 2000s. The goal of these programs can be to cross-sell (for example, using recommendation systems; Ansari, 2013;Ansari, Essengaier, and Kohli, 2000), enhance loyalty (loyalty programs; Bijmolt, Dorotic, and Verhoef, 2010;Dorotic, Bijmolt, and Verhoef, 2012;Rust, Zeithaml, and Lemon, 2000), prevent churn (churn management programs, Neslin et al, 2006a), improve service (call center management; Sun and Li, 2011), or make the best use of the firm's multiple channels (customer multichannel management; Neslin et al, 2006b). These areasloyalty programs, churn management programs, call center management, multichannel customer management, recommendation systems -are very fertile grounds for research.…”