Management perceptions of successful loyalty programs: An exploratory study
Australia and New Zealand Marketing Academy
Business and Public Management
Marketing, Tourism and Leisure
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.