Loyalty Programs: Current Insights, Research Challenges, and Emerging Trends

Tammo H. A. Bijmolt () and Peter C. Verhoef ()
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Tammo H. A. Bijmolt: University of Groningen
Peter C. Verhoef: University of Groningen

Chapter Chapter 5 in Handbook of Marketing Decision Models, 2017, pp 143-165 from Springer

Abstract: Abstract To foster customer relationshipsCustomer relationships , firms have implemented so-called loyalty programs (LPs)Loyalty programs (LP) . These programs provide monetary benefits (e.g. through direct discounts or rewards) and/or more soft benefits by focusing on creating commitment to the firm among customers through excellent service or giving special treatment to customers. In this chapter, we present a framework of three mechanisms underlying the LP effect. Next, we incorporate a discussion of relatively under-researched areas, such as reward redemption effects and so-called short-term LPsLoyalty programs (LP) . We discuss models that can be used to examine LP effects and to analyze customer data to support marketing decisions. Finally, we provide a discussion on emerging topics in LPs, specifically addressing increasing digitalization, empowered customers, and the prevalence of big data. We conclude with a discussion on some pressing research questions.

Date: 2017
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DOI: 10.1007/978-3-319-56941-3_5

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