Introducing the Currency Effect

Evert de Boer () and Xiao Yao Chin ()
Additional contact information
Evert de Boer: Managing Partner, On Point Loyalty
Xiao Yao Chin: Partner, On Point Loyalty

Chapter Chapter 1 in Loyalty Programs and the Currency Effect, 2025, pp 1-19 from Springer

Abstract: Abstract Loyalty programs are ubiquitous and with that, loyalty currencies have become very large in size. But the traditional focus of academic research and business publications has been on their ability to drive member loyalty (the “member effect”). De Boer and Chin show how significant and measurable gains can be generated by the optimal management of the underlying loyalty currencies. In doing so, de Boer and Chin look at loyalty programs through a new and important lens and define this phenomenon as the currency effect. The authors explore the factors that help to explain the rising prominence of the currency effect, as well as showcasing how points can be a useful and markedly different pricing tool compared to cash. They illustrate how the currency effect complements the conventional member effect and provide insights on maximizing the currency effect. The seemingly simple business model of selling points and buying rewards is thoroughly examined and unraveled.

Keywords: Loyalty program; Loyalty points; Strategy; Loyalty effect; Currency effect; Size of loyalty programs (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-78849-9_1

Ordering information: This item can be ordered from
http://www.springer.com/9783031788499

DOI: 10.1007/978-3-031-78849-9_1

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().