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DOI: 10.5445/KSP/1000038784/16

Three Perspectives for Making Loyalty Programs More Effective

Steinhoff, Lena; Palmatier, Robert W.

Loyalty programs are an ubiquitous instrument of customer relationship management. However, many loyalty programs perform poorly, which ultimately results in their abolition. Among both marketing managers and researchers, reasons for loyalty program failure are far from clear. The aim of this research is to enhance our understanding of loyalty program effectiveness. We propose a broadened framework for analyzing loyalty program performance which relies on three perspectives: a customer portfolio perspective, a reward elements perspective, and a reward delivery perspective. Further on, we identify three psychological mechanisms, i.e. customer gratitude, customer status, and customer unfairness as the positive and negative forces mediating loyalty programs' impact on performance outcomes. We validate our framework in two experimental studies and one field study.

Zugehörige Institution(en) am KIT Institut für Informationswirtschaft und Marketing (IISM)
Publikationstyp Zeitschriftenaufsatz
Jahr 2014
Sprache Englisch
Identifikator ISSN: 2198-8005
URN: urn:nbn:de:swb:90-415677
KITopen ID: 1000041567
Erschienen in Customer & Service Systems
Band 1
Heft 1
Seiten 147-152
URLs Gesamtwerk
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