Title

Management perceptions of successful loyalty programs: An exploratory study

Document Type

Conference Proceeding

Publisher

Australia and New Zealand Marketing Academy

Faculty

Business and Public Management

School

Marketing, Tourism and Leisure

RAS ID

652

Comments

Originally published as: Simms, P., Pettigrew, S.F. Management Perceptions of Successful Loyalty Programs: An Exploratory Study. In Australia and New Zealand Marketing Academy Conference 2002 Proceedings. (pp. 2131 - 2138). Melbourne, Australia. Original article available here

Abstract

Analyses of loyalty programs have identified various attributes common to such programs, and certain characteristics have been nominated as contributing to their success or otherwise. These latter characteristics are typically those that enhance the quality of the relationship between the organisation and the customer. This study addressed the issue of which attributes are most likely to result in a successful program by seeking the views of senior managers responsible for the implementation and operation of some of Australia’s largest customer loyalty programs. According to the managers interviewed, the most important attributes of loyalty programs are: (1) the ability to balance profit and meeting consumers’ needs, (2) a strategic fit between the program and the organisation’s overall marketing strategy, (3) the linking of rewards back to the core product, (4) the ability to target the organisation’s most profitable customers, and (5) subjecting the loyalty program to constant innovation.