Loyalty Programs and their Marketing Effectiveness: A Literature Review
Author : Sunita Devi
Abstract :
Loyalty programs have become increasingly popular among marketers as they strive to establish and maintain customer loyalty. These programs typically reward customers based on their purchase history and are structured in levels. The development of technology and customer relationship management (CRM) initiatives has led to a wide range of loyalty program designs. However, all loyalty programs aim to increase customer loyalty and foster positive relationships with profitable customer segments. This study provides a comprehensive synthesis of existing literature on loyalty programs. The review was conducted in a structured and systematic manner to ensure the relevance and rigor of the contribution to the literature. Results indicate that the study of loyalty programs is a multifaceted field, and scholars have used various approaches to explain underlying processes. The research presented in this paper offers a valuable contribution to the existing literature on loyalty programs. The findings will be useful for both academicians and practitioners seeking to enhance their understanding of loyalty programs and their effectiveness in building customer loyalty. This study highlights the importance of loyalty programs in maintaining and improving customer relationships and suggests avenues for further research to enhance our understanding of this complex field of marketing. The study makes ample contribution to the extant literature on this topic.
Keywords :
Customer loyalty, loyalty programs, customer relationship management, brand loyalty
