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40 years of loyalty programs: how effective are they? Generalizations from a meta-analysis
- Source :
- Journal of the Academy of Marketing Science. 50:147-173
- Publication Year :
- 2021
- Publisher :
- Springer Science and Business Media LLC, 2021.
-
Abstract
- Despite firms’ extensive usage of loyalty programs (LPs) and decades-long academic research on their effectiveness, LPs’ effects on customer loyalty are still heavily debated. We perform a comprehensive meta-analysis of loyalty programs across various LP designs and industries and spanning different performance metrics to identify moderators of LP effectiveness. Based on a data set with 429 effect sizes, published or available between 1990 and 2020, we find strong evidence that LPs enhance customer loyalty. However, while LPs particularly enhance behavioral loyalty, shifting consumers’ attitudinal loyalty is more challenging. Further, LP effectiveness differs systematically depending on LP design characteristics (LP structure, reward content and delivery) and industry characteristics. These effects are enabled by both cognitive and affective drivers, acting sequentially, as underlying mechanisms. Despite a wide range of methodologies investigating LPs’ effectiveness, methodological choices have little impact on the substantive results. We develop a comprehensive research agenda and managerial implications.
- Subjects :
- 1503 Business and Management, 1505 Marketing, 1506 Tourism
Marketing
Economics and Econometrics
customer loyalty
media_common.quotation_subject
Cognition
relationship marketing
loyalty cards
Design characteristics
firm performance
Loyalty business model
meta-analysis
Meta-analysis
Loyalty
loyalty programs
Business and International Management
Psychology
reward programs
media_common
Subjects
Details
- ISSN :
- 15527824 and 00920703
- Volume :
- 50
- Database :
- OpenAIRE
- Journal :
- Journal of the Academy of Marketing Science
- Accession number :
- edsair.doi.dedup.....f93a5f4d2a5e926703702a501959ac7a