40 years of loyalty programs: how effective are they? Generalizations from a meta-analysis

Belli, A; O’Rourke, AM; Carrillat, FA; Pupovac, L; Melnyk, V; Napolova, E

40 years of loyalty programs: how effective are they? Generalizations from a meta-analysis

Belli, A

O’Rourke, AM Carrillat, FA Pupovac, L Melnyk, V Napolova, E

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Publisher:: SPRINGER
Publication Type:: Journal Article
Citation:: Journal of the Academy of Marketing Science, 2022, 50, (1), pp. 147-173
Issue Date:: 2022-01-01

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Field	Value	Language
dc.contributor.author	Belli, A https://orcid.org/0000-0001-5425-9294
dc.contributor.author	O’Rourke, AM
dc.contributor.author	Carrillat, FA
dc.contributor.author	Pupovac, L
dc.contributor.author	Melnyk, V
dc.contributor.author	Napolova, E
dc.date.accessioned	2022-10-10T23:37:26Z
dc.date.available	2022-10-10T23:37:26Z
dc.date.issued	2022-01-01
dc.identifier.citation	Journal of the Academy of Marketing Science, 2022, 50, (1), pp. 147-173
dc.identifier.issn	0092-0703
dc.identifier.issn	1552-7824
dc.identifier.uri	http://hdl.handle.net/10453/162448
dc.description.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.
dc.language	English
dc.publisher	SPRINGER
dc.relation.ispartof	Journal of the Academy of Marketing Science
dc.relation.isbasedon	10.1007/s11747-021-00804-z
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1503 Business and Management, 1505 Marketing, 1506 Tourism
dc.subject.classification	Marketing
dc.title	40 years of loyalty programs: how effective are they? Generalizations from a meta-analysis
dc.type	Journal Article
utslib.citation.volume	50
utslib.for	1503 Business and Management
utslib.for	1505 Marketing
utslib.for	1506 Tourism
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Marketing Discipline
utslib.copyright.status	closed_access	*
dc.date.updated	2022-10-10T23:37:24Z
pubs.issue	1
pubs.publication-status	Published
pubs.volume	50
utslib.citation.issue	1

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.

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http://hdl.handle.net/10453/162448