The effect of retail customer loyalty schemes — Detailed measurement or transforming marketing?

Stone, Merlin; Bearman, David; Butscher, Stephan A.; Gilbert, David; Crick, Paul; Moffett, Tess

doi:10.1057/palgrave.jt.5740117

Cited by 24 publications

(22 citation statements)

References 1 publication

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“…LPs yield a wealth of data about individual customer behaviour (e.g. purchases, responses to marketing communications) – an important source of information for fine‐tuning various marketing efforts (Berman 2006; Kumar and Shah 2004; Stone et al . 2004).…”

Section: Personalized Marketing and Sales Promotionsmentioning

confidence: 99%

“…Through relationship building, successful LPs encourage a consumer to purchase frequently from the programme provider, increase purchase amounts over time (e.g. cross-purchases, upgrades) and increase the share of wallet (SOW) at the focal provider/brand (Stone et al 2004). • Structured: Customers must (formally) become LP members to obtain benefits, which implies that LPs should be membership-based.…”

Section: Definition Of Lpsmentioning

confidence: 99%

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Loyalty Programmes: Current Knowledge and Research Directions^*

Dorotić

Bijmolt

Verhoef

2011

Int J Management Reviews

183

182

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Loyalty programmes (LPs) have increased in number and popularity, but their effects on customer behaviour remain equivocal, due to a lack of understanding of the drivers of LP effectiveness and insufficient generalizable conclusions across prior studies. This paper synthesizes current knowledge pertaining to LPs, reconciles opposing findings by exploring the conditions that mediate and moderate the effects of LP participation on consumer responses, and charts important avenues for research. Overall, we find that LPs are effective in increasing consumer purchase behaviours over time, but the impact differs across consumer segments and markets. Currently, neither firms nor consumers fully benefit from the opportunities that LPs offer. To that end, we identify aspects which help researchers and practitioners increase their understanding of LP benefits and pitfalls. Through this study, companies that already have LPs will be able to improve their performance, and those that are about to introduce one will better understand the implications of the LP launch.

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Section: Personalized Marketing and Sales Promotionsmentioning

confidence: 99%

Section: Definition Of Lpsmentioning

confidence: 99%

Loyalty Programmes: Current Knowledge and Research Directions^*

Dorotić

Bijmolt

Verhoef

2011

Int J Management Reviews

183

182

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“…Loyalty programs yield a wealth of data about individual customer behavior (e.g., purchases, responses to marketing communications) -an important source of information for fine-tuning marketing efforts (Berman, 2006;Kumar and Shah, 2004;Stone et al, 2004). First, LP data can help segment a market and increase the value of targeted offers, as the practice of the UK retailer Tesco demonstrates (Kumar and Reinartz, 2006;Rowley, 2005;Turner and Wilson, 2006 Verhoef, 2003).…”

Section: Benefits Of Personalized Marketingmentioning

confidence: 99%

“…Through relationship building, successful LPs encourage a customer to purchase frequently from the program provider, increase purchase amounts over time (e.g., crosspurchases, upgrades), and increase the share of wallet (SOW) at the focal provider/brand (Stone et al, 2004). …”

Section: Introductionmentioning

confidence: 99%

Loyalty Programs: Generalizations on Their Adoption, Effectiveness and Design

Bijmolt¹,

Dorotić²,

Verhoef³

2010

FNT in Marketing

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“…Though it is beyond the scope of this paper to detail the ways in which consumers can be seen to change their consumption in line with marketing practices (see for instance Pridmore 2008;Zwick and Dholakia 2004a;Stone et al 2004;Dowling and Uncles 1997), the cultural circuit of loyalty marketing, while dependent upon consumer feedback and engagement, is able to shape the consumption practices of its members through the mechanics of these programs. There are of course a number of failures, of points in which marketing did not connect with its intended audience, yet each interviewee saw these as learning experiences.…”

Section: Consumers and The Cultural Circuit Of Loyalty Programsmentioning

confidence: 99%

Reflexive marketing: the cultural circuit of loyalty programs

Pridmore

2010

IDIS

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The amount of personal data now collected through contemporary marketing practices is indicative of the shifting landscape of contemporary capitalism. Loyalty programs can be seen as one exemplar of this, using the 'add-ons' of 'points' and 'miles' to entice consumers into divulging a range of personal information. These consumers are subject to surveillance practices that have digitally identified them as significant in the eyes of a corporation, yet they are also part of a feedback loop subject to ongoing analysis. This paper focuses on this analysis as the 'cultural circuit' of loyalty programsthe ongoing process of meaning-making in this form of contemporary marketing-as exemplary of what Nigel Thrift calls "soft capitalism" (1997, 2005). Loyalty programs engage consumers in an ongoing 'relationship' with a corporation, yet it is one predicated on the collection and analysis of personal data in order to identify, maintain and increase profits from these consumer 'relationships.' This paper looks at ways of knowing, application and revision in the cultural circuit of loyalty program marketing as a form of reflexive marketing and raises concerns about consumer subjectivity in the context consumer culture that mediates much of contemporary experience. These technologies and practices continually adapt and adjust to strategically act toward consumers as a form of consumer surveillance based on an increasingly intensive and nuanced knowledge of their behaviours.

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The effect of retail customer loyalty schemes — Detailed measurement or transforming marketing?

Abstract: are consultants with IBM Business Consulting Services. They have both worked on many projects on consumer goods marketing and loyalty schemes.

Cited by 24 publications

References 1 publication

Loyalty Programmes: Current Knowledge and Research Directions^*

Loyalty Programmes: Current Knowledge and Research Directions^*

Loyalty Programs: Generalizations on Their Adoption, Effectiveness and Design

Reflexive marketing: the cultural circuit of loyalty programs

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About

The effect of retail customer loyalty schemes — Detailed measurement or transforming marketing?

Abstract: are consultants with IBM Business Consulting Services. They have both worked on many projects on consumer goods marketing and loyalty schemes.

Cited by 24 publications

References 1 publication

Loyalty Programmes: Current Knowledge and Research Directions*

Loyalty Programmes: Current Knowledge and Research Directions*

Loyalty Programs: Generalizations on Their Adoption, Effectiveness and Design

Reflexive marketing: the cultural circuit of loyalty programs

Contact Info

Product

Resources

About

Loyalty Programmes: Current Knowledge and Research Directions^*

Loyalty Programmes: Current Knowledge and Research Directions^*