Skip to main content
SpringerLink
Log in

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

  • Original Empirical Research
  • Published:
Journal of the Academy of Marketing Science Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2

Similar content being viewed by others

Notes

  1. Up until now, the four LP design characteristics in Bombaij and Dekimpe’s (2020) study constitute the largest number of simultaneous effects investigated.

  2. The literature discussion covers conative loyalty, but this dimension is not part of the meta-analytical framework and is not included in empirical predictions because only 8 effect sizes were retrieved for it.

  3. Similarly, in the few cases when the studies compare different intensity levels of the same LP design characteristics (e.g., 5 tiers vs. 3 tiers rather than tiers vs. no tiers), the higher intensity level served as the treatment condition to maintain consistency between effect sizes.

  4. For example, we were able to retrieve LP design and rewards information about Macau’s Venetian Casino’s Sands Rewards Club included in Shi et al. (2014) from the archived corporate web site and online business news articles published then (Cision PR Newswire 2010).

  5. Diagnostic tests of publication bias based on funnel plot asymmetry are inadequate if the distribution of effect sizes is likely to be heterogeneous (Ionnadis 2005), as in our case, because the pool of effect sizes reflects a population with different underlying “true” effects. As a solution, we account for heterogeneity with the moderators, including the precision of the effect size (Sterne and Egger 2005).

  6. For the full list of articles included in the meta-analysis, see Web Appendix A.

References

  • Ashley, C., Gillespie, E. A., & Noble, S. M. (2016). The effect of loyalty program fees on program perceptions and engagement. Journal of Business Research, 69(2), 964–973.

    Google Scholar 

  • Banik, S., Gao, Y., & Rabbanee, F. K. (2019). Status demotion in hierarchical loyalty programs and its effects on switching: Identifying mediators and moderators in the Chinese context. Journal of Business Research, 96, 125–134.

    Google Scholar 

  • Barone, M. J., & Roy, T. (2010). Does exclusivity always pay off? Exclusive price promotions and consumer response. Journal of Marketing, 74(2), 121–132.

    Google Scholar 

  • Bergh, D. D., Aguinis, H., Heavey, C., Ketchen, D. J., Boyd, B. K., & Su, P. (2016). Using meta- analytic structural equation modeling to advance strategic management research: Guidelines and an empirical illustration via the strategic leadership-performance relationship. Strategic Management Journal, 37(3), 477–497.

    Google Scholar 

  • Berman, B. (2006). Developing an effective customer loyalty program. California Management Review, 49(1), 123–148.

    Google Scholar 

  • Beroe Inc. (2019). Loyalty programs market to reach $201 billion by 2022, according to beroe inc. Retrieved Sep 02, 2020 from https://www.prnewswire.com/news-releases/loyalty-programs-market-to-reach-201-billion-by-2022-according-to-beroe-inc-300794907.html.

  • Bhattacharya, C. B. (1998). When customers are members: Customer retention in paid membership contexts. Journal of the Academy of Marketing Science, 26(1), 31–44.

    Google Scholar 

  • Bhattacharya, C. B., Rao, H., & Glynn, M. A. (1995). Understanding the bond of identification: An investigation of its correlates among art museum members. Journal of Marketing, 59(4), 46–57.

    Google Scholar 

  • Bijmolt, T. H. A., Dorotic, M., & Verhoef, P. C. (2011). Loyalty programs: Generalizations on their adoption, effectiveness and design. Foundations and Trends in Marketing, 5(4), 197–258.

    Google Scholar 

  • Bijmolt, T. H. A., Van Heerde, H. J., & Pieters, R. G. M. (2005). New empirical generalizations on the determinants of price elasticity. Journal of Marketing Research, 42(2), 141–156.

    Google Scholar 

  • Bolton, R. N., Kannan, P. K., & Bramlett, M. D. (2000). Implications of loyalty program membership and service experiences for customer retention and value. Journal of the Academy of Marketing Science, 28(1), 95–108.

    Google Scholar 

  • Bombaij, N. J., & Dekimpe, M. G. (2020). When do loyalty programs work? The moderating role of design, retailer-strategy, and country characteristics. International Journal of Research in Marketing, 37(3), 175–195.

    Google Scholar 

  • Bond. (2019). The loyalty report 2019: The new story of loyalty. Retrieved 10 May, 2020 from https://cdn2.hubspot.net/hubfs/352767/TLR%202019/Bond_US%20TLR19%20Exec%20Summary%20Launch%20Edition.pdf.

  • Borenstein, M., Hedges, L. V., Higgins, J. P., & Rothstein, H. R. (2009). Introduction to Meta-analysis. Wiley.

    Google Scholar 

  • Brakus, J. J., Schmitt, B. H., & Zarantonello, L. (2009). Brand experience: What is it? How is it measured? Does it affect loyalty? Journal of Marketing, 73(3), 52–68.

    Google Scholar 

  • Breugelmans, E., Bijmolt, T. H. A., Zhang, J., Basso, L. J., Dorotic, M., Kopalle, P., & Wünderlich, N. V. (2015). Advancing research on loyalty programs: A future research agenda. Marketing Letters, 26(2), 127–139.

    Google Scholar 

  • Bridson, K., Evans, J., & Hickman, M. (2008). Assessing the relationship between loyalty program attributes, store satisfaction and store loyalty. Journal of Retailing and Consumer Services, 15(5), 364–374.

    Google Scholar 

  • Carrillat, F. A., Legoux, R., & Hadida, A. L. (2018). Debates and assumptions about motion picture performance: A meta-analysis. Journal of the Academy of Marketing Science, 46(2), 273–299.

    Google Scholar 

  • Chandon, P., Wansink, B., & Laurent, G. (2000). A benefit congruency framework of sales promotion effectiveness. Journal of Marketing, 64(4), 65–81.

    Google Scholar 

  • Chang, H. H., & Wong, K. H. (2018). Consumer psychological reactance to coalition loyalty program: Price-consciousness as a moderator. Service Business, 12(2), 379–402.

    Google Scholar 

  • Chaudhuri, M., Voorhees, C. M., & Beck, J. M. (2019). The effects of loyalty program introduction and design on short- and long-term sales and gross profits. Journal of the Academy of Marketing Science, 47(4), 640–658.

    Google Scholar 

  • Chen, Y., Mandler, T., & Meyer-Waarden, L. (2020). Three decades of research on loyalty programs: A literature review and future research agenda. Journal of Business Research, 124, 179–197.

    Google Scholar 

  • Chiou, J. S., & Droge, C. (2006). Service quality, trust, specific asset investment, and expertise: Direct and indirect effects in a satisfaction-loyalty framework. Journal of the Academy of Marketing Science, 34(4), 613.

    Google Scholar 

  • Cision PR News Wire (2010). Sands Rewards Club—The $1.5 Billion Club of Rewards and Privileges Presents its Members with a 'Win a Billionaire's Lifestyle' Campaign. Retrieved 17 April, 2020 from https://www.prnewswire.com/news-releases/sands-rewards-club----the-15-billion-club-of-rewards-and-privileges-presents-its-members-with-a-win-a-billionaires-lifestyle-campaign-94428269.html

  • Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Lawrence Erlbaum Associates, Publishers.

    Google Scholar 

  • Cortiñas, M., Elorz, M., & Múgica, J. M. (2008). The use of loyalty-cards databases: Differences in regular price and discount sensitivity in the brand choice decision between card and non-card holders. Journal of Retailing and Consumer Services, 15(1), 52–62.

    Google Scholar 

  • Cox, D. F., & Rich, S. U. (1964). Perceived risk and consumer decision-making—the case of telephone shopping. Journal of Marketing Research, 1(4), 32–39.

    Google Scholar 

  • Daams, P., Gelderman, K., & Schijns, J. (2008). The impact of loyalty programmes in a B- to-B context: Results of an experimental design. Journal of Targeting, Measurement and Analysis for Marketing, 16(4), 274–284.

    Google Scholar 

  • Dalton, J. E., Bolen, S. D., & Mascha, E. J. (2016). Publication bias: The elephant in the review. Anesthesia and Analgesia, 123(4), 812–813.

    Google Scholar 

  • De Wulf, K., Odekerken-Schröder, G., & Iacobucci, D. (2001). Investments in consumer relationships: A cross-country and cross-industry exploration. Journal of Marketing, 65(4), 33–50.

    Google Scholar 

  • Demoulin, N. T., & Zidda, P. (2008). On the impact of loyalty cards on store loyalty: Does the customers’ satisfaction with the reward scheme matter? Journal of Retailing and Consumer Services, 15(5), 386–398.

    Google Scholar 

  • Dick, A. S., & Basu, K. (1994). Customer loyalty: Toward an integrated conceptual framework. Journal of the Academy of Marketing Science, 22(2), 99–113.

    Google Scholar 

  • Dorotic, M., Fok, D., Verhoef, P. C., & Bijmolt, T. H. (2011). Do vendors benefit from promotions in a multi-vendor loyalty program? Marketing Letters, 22(4), 341–356.

    Google Scholar 

  • Dorotic, M., Verhoef, P. C., Fok, D., & Bijmolt, T. H. (2014). Reward redemption effects in a loyalty program when customers choose how much and when to redeem. International Journal of Research in Marketing, 31(4), 339–355.

    Google Scholar 

  • Dowling, G. R., & Uncles, M. (1997). Do customer loyalty programs really work? Sloan Management Review, 38(4), 71–82.

    Google Scholar 

  • Drèze, X., & Nunes, J. C. (2009). Feeling superior: The impact of loyalty program structure on consumers’ perceptions of status. Journal of Consumer Research, 35(6), 890–905.

    Google Scholar 

  • Edeling, A., Srinivasan, S., & Hanssens, D. M. (2020). The marketing–finance interface: A new integrative review of metrics, methods, and findings and an agenda for future research. International Journal of Research in Marketing. Available at https://doi.org/10.1016/j.ijresmar.2020.09.005.

  • Eggert, A., Steinhoff, L., & Garnefeld, I. (2015). Managing the bright and dark sides of status endowment in hierarchical loyalty programs. Journal of Service Research, 18(2), 210–228.

    Google Scholar 

  • Esmark, C. L., Noble, S. M., & Bell, J. E. (2016). Open versus selective customer loyalty programmes. European Journal of Marketing, 50(5/6), 770–795.

    Google Scholar 

  • Evanschitzky, H., Ramaseshan, B., Woisetschläger, D. M., Richelsen, V., Blut, M., & Backhaus, C. (2012). Consequences of customer loyalty to the loyalty program and to the company. Journal of the Academy of Marketing Science, 40(5), 625–638.

    Google Scholar 

  • Feinberg, F. M., Krishna, A., & Zhang, Z. J. (2002). Do we care what others get? A behaviorist approach to targeted promotions. Journal of Marketing Research, 39(3), 277–291.

    Google Scholar 

  • Ferguson, C. J., & Brannick, M. T. (2012). Publication bias in pyschological science: Prevalence, methods for identifying and controlling, and implication for the use of meta-analyses. Psychological Methods, 17(1), 120–128.

    Google Scholar 

  • Forrester (2013, October). The Forrester Wave Loyalty Program Service Providers, Q4 2013. Retrieved Nov 19, 2020 from https://www.forrester.com/report/The+Forrester+Wave+Loyalty+Program+Service+Providers+Q4+2013/-/E-RES105201

  • Fruend, M. (2017). The 2017 Colloquy Loyalty Census. Colloquy. Retrieved May 05, 2021 from https://www.colloquy.com/latest-news/us-customer-loyalty-program-membershipsreach-double-digit-growth-at-3-8-billion-2017-colloquy-loyaltycensus-reports.

  • García-Gómez, B., Gutiérrez Arranz, A. M., & Gutiérrez Cillán, J. (2006). The role of loyalty programs in behavioral and affective loyalty. Journal of Consumer Marketing, 23(7), 387–396.

    Google Scholar 

  • García-Gómez, B., Gutiérrez-Arranz, A. M., & Gutiérrez-Cillán, J. (2012). Exploring the influence of three types of grocery retailer loyalty programs on customer affective loyalty. The International Review of Retail, Distribution and Consumer Research, 22(5), 547–561.

    Google Scholar 

  • Gremler, D. D., Van Vaerenbergh, Y., Brüggen, E. C., & Gwinner, K. P. (2020). Understanding and managing customer relational benefits in services: A meta-analysis. Journal of the Academy of Marketing Science, 48, 1–19.

    Google Scholar 

  • Grewal, D., Puccinelli, N., & Monroe, K. B. (2018). Meta-Analysis: Integrating Accumulating Knowledge. Journal of the Academy of Marketing Science, 46(1), 9–30.

    Google Scholar 

  • Gustafsson, A., Johnson, M. D., & Roos, I. (2005). The effects of customer satisfaction, relationship commitment dimensions, and triggers on customer retention. Journal of Marketing, 69(4), 210–218.

    Google Scholar 

  • Harris, R. L. (2013). Casino loyalty programs: Differences between members and nonmembers based on attitudes and behaviors, Doctoral dissertation, Kent State University.

  • Henderson, C. M., Beck, J. T., & Palmatier, R. W. (2011). Review of the theoretical underpinnings of loyalty programs. Journal of Consumer Psychology, 21(3), 256–276.

    Google Scholar 

  • Hennig-Thurau, T., & Paul, M. (2007). Can economic bonus programs jeopardize service relationships? Service Business, 1(2), 159–175.

    Google Scholar 

  • Hirschman, E. C., & Holbrook, M. B. (1982). Hedonic consumption: Emerging concepts, methods and propositions. Journal of Marketing, 46(3), 92–101.

    Google Scholar 

  • Huang, C. T., & Chen, P. T. (2010). Do reward programs truly build loyalty for lodging industry? International Journal of Hospitality Management, 29(1), 128–135.

    Google Scholar 

  • Hunter, J. E., & Schmidt, F. L. (2004). Methods of Meta-Analysis: Correcting Error and Bias in Research Findings: Correcting Error and Bias in Research Findings. Sage.

    Google Scholar 

  • Hwang, I., & Kwon, H. (2016). Effects of demotion in loyalty programs on brand-switching intentions. Service Business, 10(3), 489–505.

    Google Scholar 

  • Hwang, J., & Choi, L. (2020). Having fun while receiving rewards?: Exploration of gamification in loyalty programs for consumer loyalty. Journal of Business Research, 106, 365–376.

    Google Scholar 

  • Ionnadis, J. P. A. (2005). Differentiating Biases from Genuine Heterogeneity: Distinguishing Artifactual from Substantive Effects. In H. R. Rothstein, A. J. Sutton, & M. Borenstein (Eds.), Publication bias in meta-analysis: Prevention, assessments, and adjustments (pp. 287–302). Wiley.

    Google Scholar 

  • Jai, T. M. C., & King, N. J. (2016). Privacy versus reward: Do loyalty programs increase consumers’ willingness to share personal information with third-party advertisers and data brokers? Journal of Retailing and Consumer Services, 28, 296–303.

    Google Scholar 

  • Johnson, M. D., Herrmann, A., & Huber, F. (2006). The evolution of loyalty intentions. Journal of Marketing, 70(2), 122–132.

    Google Scholar 

  • Katsikeas, C. S., Morgan, N. A., Leonidou, L. C., & Hult, G. T. M. (2016). Assessing performance outcomes in marketing. Journal of Marketing, 80(2), 1–20.

    Google Scholar 

  • Khamitov, M., Wang, X., & Thomson, M. (2019). How well do consumer-brand relationships drive customer brand loyalty? Generalizations from a meta-analysis of brand relationship elasticities. Journal of Consumer Research, 46(3), 435–459.

    Google Scholar 

  • Kim, D., Lee, S., Bu, K., & Lee, S. (2009). Do VIP programs always work well? The moderating role of loyalty. Psychology and Marketing, 26(7), 590–609.

    Google Scholar 

  • Kim, J. J., Steinhoff, L., & Palmatier, R. W. (2021). An emerging theory of loyalty program dynamics. Journal of the Academy of Marketing Science, 49(1), 71–95.

    Google Scholar 

  • Kim, W. G., Kim, S. Y., & Leong, J. K. (2003). Impact of guest reward programs on the firm’s performance. Journal of Quality Assurance in Hospitality & Tourism, 4(1–2), 87–109.

    Google Scholar 

  • Kivetz, R. (2005). Promotion reactance: The role of effort-reward congruity. Journal of Consumer Research, 31(4), 725–736.

    Google Scholar 

  • Kivetz, R., & Simonson, I. (2002). Earning the right to indulge: Effort as a determinant of customer preferences toward frequency program rewards. Journal of Marketing Research, 39(2), 155–170.

    Google Scholar 

  • Kivetz, R., & Simonson, I. (2003). The idiosyncratic fit heuristic: Effort advantage as a determinant of consumer response to loyalty programs. Journal of Marketing Research, 40(4), 454–467.

    Google Scholar 

  • Kopalle, P. K., Sun, Y., Neslin, S. A., Sun, B., & Swaminathan, V. (2012). The joint sales impact of frequency reward and customer tier components of loyalty programs. Marketing Science, 31(2), 216–235.

    Google Scholar 

  • KPMG. (2019). Customer Loyalty Report. Retrieved April 19, 2021 from https://assets.kpmg/content/dam/kpmg/xx/pdf/2019/11/customer-loyalty-report.pdf

  • Kranzbühler, A. M., Zerres, A., Kleijnen, M. H., & Verlegh, P. W. (2019). Beyond valence: A meta-analysis of discrete emotions in firm-customer encounters. Journal of the Academy of Marketing Science, 48(3), 1–21.

    Google Scholar 

  • Kumar, V., & Shah, D. (2004). Building and sustaining profitable customer loyalty for the 21st century. Journal of Retailing, 80(4), 317–329.

    Google Scholar 

  • Kwiatek, P., Morgan, Z., & Thanasi-Boçe, M. (2020). The role of relationship quality and loyalty programs in building customer loyalty. Journal of Business & Industrial Marketing. 35(11).

  • Lacey, R., Suh, J., & Morgan, R. M. (2007). Differential effects of preferential treatment levels on relational outcomes. Journal of Service Research, 9(3), 241–256.

    Google Scholar 

  • Leenheer, J., & Bijmolt, T. H. (2008). Which retailers adopt a loyalty program? An empirical study. Journal of Retailing and Consumer Services, 15(6), 429–442.

    Google Scholar 

  • Leenheer, J., Van Heerde, H. J., Bijmolt, T. H. A., & Smidts, A. (2007). Do loyalty programs really enhance behavioral loyalty? An empirical analysis accounting for self-selecting members. International Journal of Research in Marketing, 24(1), 31–47.

    Google Scholar 

  • Leipnitz, S., de Vries, M., Clement, M., & Mazar, N. (2018). Providing health checks as incentives to retain blood donors—evidence from two field experiments. International Journal of Research in Marketing, 35(4), 628–640.

    Google Scholar 

  • Lemon, K. N., & Wangenheim, F. V. (2009). The reinforcing effects of loyalty program partnerships and core service usage: A longitudinal analysis. Journal of Service Research, 11(4), 357–370.

    Google Scholar 

  • Lepthien, A., Papies, D., Clement, M., & Melnyk, V. (2017). The ugly side of customer management–Consumer reactions to firm-initiated contract terminations. International Journal of Research in Marketing, 34(4), 829–850.

    Google Scholar 

  • Lisjak, M., Bonezzi, A., & Rucker, D. (2021). How marketing perks influence word-of-mouth. Journal of Marketings. https://doi.org/10.1177/0022242921991798

    Article  Google Scholar 

  • Liu, J., & Ansari, A. (2020). Understanding consumer dynamic decision making under competing loyalty programs. Journal of Marketing Research, 57(3), 422–444.

    Google Scholar 

  • Liu, Y. (2007). The long-term impact of loyalty programs on consumer purchase behavior and loyalty. Journal of Marketing, 71(4), 19–35.

    Google Scholar 

  • Liu, Y., & Yang, R. (2009). Competing loyalty programs: Impact of market saturation, market share, and category expandability. Journal of Marketing, 73(1), 93–108.

    Google Scholar 

  • Liu-Thompkins, Y., & Tam, L. (2013). Not all repeat customers are the same: Designing effective cross-selling promotion on the basis of attitudinal loyalty and habit. Journal of Marketing, 77(5), 21–36.

    Google Scholar 

  • Mägi, A. W. (2003). Share of wallet in retailing: The effects of customer satisfaction, loyalty cards and shopper characteristics. Journal of Retailing, 79(2), 97–106.

    Google Scholar 

  • Martin, K. D., & Murphy, P. E. (2017). The role of data privacy in marketing. Journal of the Academy of Marketing Science, 45(2), 135–155.

    Google Scholar 

  • Melnyk, V. (2014). Resisting temptation: Gender differences in customer loyalty in the presence of a more attractive alternative. Australasian Marketing Journal, 22(4), 335–341.

    Google Scholar 

  • Melnyk, V., & Bijmolt, T. (2015). The effects of introducing and terminating loyalty programs. European Journal of Marketing, 49(3–4), 398–419.

    Google Scholar 

  • Melnyk, V., Carrillat, F. A., & Melnyk, V. (2021). The influence of social norms on consumer behavior: A meta-analysis. Journal of Marketing. https://doi.org/10.1177/00222429211029199.

    Article  Google Scholar 

  • Melnyk, V., & van Osselaer, S. M. (2012). Make me special: Gender differences in consumers’ responses to loyalty programs. Marketing Letters, 23(3), 545–559.

    Google Scholar 

  • Melnyk, V., van Osselaer, S. M., & Bijmolt, T. H. (2009). Are women more loyal customers than men? Gender differences in loyalty to firms and individual service providers. Journal of Marketing, 73(4), 82–96.

    Google Scholar 

  • Meyer-Waarden, L. (2007). The effects of loyalty programs on customer lifetime duration and share of wallet. Journal of Retailing, 83(2), 223–236.

    Google Scholar 

  • Meyer-Waarden, L. (2008). The influence of loyalty programme membership on customer purchase behaviour. European Journal of Marketing, 42(1/2), 87–114.

    Google Scholar 

  • Meyer-Waarden, L., & Benavent, C. (2009). Grocery retail loyalty program effects: Self-selection or purchase behavior change? Journal of the Academy of Marketing Science, 37(3), 345–358.

    Google Scholar 

  • Mimouni-Chaabane, A., & Volle, P. (2010). Perceived benefits of loyalty programs: Scale development and implications for relational strategies. Journal of Business Research, 63(1), 32–37.

    Google Scholar 

  • Minnema, A., Bijmolt, T. H., & Non, M. C. (2017). The impact of instant reward programs and bonus premiums on consumer purchase behavior. International Journal of Research in Marketing, 34(1), 194–211.

    Google Scholar 

  • Moorman, C., Zaltman, G., & Deshpande, R. (1992). Relationships between providers and users of market research: The dynamics of trust within and between organizations. Journal of Marketing Research, 29(3), 314–328.

    Google Scholar 

  • Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), 504–514.

    Google Scholar 

  • O’Brien, L., & Jones, C. (1995). Do rewards really create loyalty? Long Range Planning, 28(4), 130–130.

    Google Scholar 

  • Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63(4), 33–44.

    Google Scholar 

  • Palmatier, R. W., Dant, P. R., Grewal, D., & Evans, K. R. (2006). Factors influencing the effectiveness of relationship marketing: A meta-analysis. Journal of Marketing, 70(4), 136–153.

    Google Scholar 

  • Palmatier, R. W., Jarvis, C. B., Bechkoff, J. R., & Kardes, F. R. (2009). The role of customer gratitude in relationship marketing. Journal of Marketing, 73(5), 1–18.

    Google Scholar 

  • Rehnen, L. M. (2016). Exit strategies of loyalty programs. Journal of Business Market Management, 9(1), 564–596.

    Google Scholar 

  • Reichheld, F. F. (2003). The one number you need to grow. Harvard Business Review, 81(12), 46–55.

    Google Scholar 

  • Reinartz, W., Thomas, J. S., & Kumar, V. (2005). Balancing acquisition and retention resources to maximize customer profitability. Journal of Marketing, 69(1), 63–79.

    Google Scholar 

  • Rese, M., Hundertmark, A., Schimmelpfennig, H., & Schons, L. M. (2013). Loyalty program types as drivers of customer retention: A comparison of stand-alone programs and multi-vendor loyalty programs through the lens of transaction cost economics. The International Review of Retail, Distribution and Consumer Research, 23(3), 305–323.

    Google Scholar 

  • Roschk, H., & Hosseinpour, M. (2020). Pleasant ambient scents: A meta-analysis of customer responses and situational contingencies. Journal of Marketing, 84(1), 125–145.

    Google Scholar 

  • Rosenthal, R. (1979). Meta-analytic procedures for social research. Sage Publications.

    Google Scholar 

  • Rutz, O. J., & Watson, G. F. (2019). Endogeneity and marketing strategy research: An overview. Journal of the Academy of Marketing Science, 47(3), 479–498.

    Google Scholar 

  • Schindler, R. M. (1998). Consequences of perceiving oneself as responsible for obtaining a discount: Evidence for smart-shopper feelings. Journal of Consumer Psychology, 7(4), 371–392.

    Google Scholar 

  • Schumann, J. H., Wünderlich, N. V., & Evanschitzky, H. (2014). Spillover effects of service failures in coalition loyalty programs: The buffering effect of special treatment benefits. Journal of Retailing, 90(1), 111–118.

    Google Scholar 

  • Sharp, B., & Sharp, A. (1997). Loyalty programs and their impact on repeat-purchase loyalty patterns. International Journal of Research in Marketing, 14(5), 473–486.

    Google Scholar 

  • Shi, Y., Prentice, C., & He, W. (2014). Linking service quality, customer satisfaction and loyalty in casinos, does membership matter? International Journal of Hospitality Management., 40, 81–91.

    Google Scholar 

  • Stanley, T. D., & Doucouliagos, H. (2012). Meta-regression analysis in economics and business. Routledge.

    Google Scholar 

  • Stathopoulou, A., & Balabanis, G. (2016). The effects of loyalty programs on customer satisfaction, trust, and loyalty toward high-and low-end fashion retailers. Journal of Business Research, 69(12), 5801–5808.

    Google Scholar 

  • Stauss, B., Schmidt, M., & Schoeler, A. (2005). Customer frustration in loyalty programs. International Journal of Service Industry Management., 16, 229–252.

    Google Scholar 

  • Steinhoff, L., & Palmatier, R. W. (2016). Understanding loyalty program effectiveness: Managing target and bystander effects. Journal of the Academy of Marketing Science, 44(1), 88–107.

    Google Scholar 

  • Sterne, J. A. C., & Egger, M. (2005). Regression methods to detect publication bias and other bias in meta-analysis. In H. R. Rothstein, A. J. Sutton, & M. Borenstein (Eds.), Publication bias in meta-analysis: Prevention, assessments, and adjustments (pp. 99–110). Wiley.

    Google Scholar 

  • Suh, J. C., & Yi, Y. (2012). Do consumption goals matter? The effects of online loyalty programs in the satisfaction-loyalty relation. Psychology & Marketing, 29(8), 549–557.

    Google Scholar 

  • Suls, J., Lemos, K., & Stewart, H. L. (2002). Self-esteem, construal, and comparisons with the self, friends, and peers. Journal of Personality and Social Psychology, 82(2), 252.

    Google Scholar 

  • Taylor, G. A., & Neslin, S. A. (2005). The current and future sales impact of a retail frequency reward program. Journal of Retailing, 81(4), 293–305.

    Google Scholar 

  • Uncles, M. D., Dowling, G. R., & Hammond, K. (2003). Customer loyalty and customer loyalty programs. Journal of Consumer Marketing, 20(4), 294–316.

    Google Scholar 

  • Van de Noortgate, W., López- López, J. A., Marin-Martinez, F., & Sánchez-Meca, J. (2015). Meta-analysis of multiple outcomes: A multilevel approach. Behavioural Research Methods, 47(4), 1274–1294.

    Google Scholar 

  • Van Heerde, H. J., & Bijmolt, T. H. (2005). Decomposing the promotional revenue bump for loyalty program members versus nonmembers. Journal of Marketing Research, 42(4), 443–457.

    Google Scholar 

  • Van Osselaer, S. M., Alba, J. W., & Manchanda, P. (2004). Irrelevant information and mediated intertemporal choice. Journal of Consumer Psychology, 14(3), 257–270.

    Google Scholar 

  • Verhoef, P. C., & Langerak, F. (2002). Eleven misconceptions about customer relationship management. Business Strategy Review, 13(4), 70–76.

    Google Scholar 

  • Viechtbauer, W., & Cheung, M.W.-L. (2010). Outlier and influence diagnostics for meta-analysis. Research Synthesis Methods, 1(2), 112–125.

    Google Scholar 

  • Villacé-Molinero, T., Reinares-Lara, P., & Reinares-Lara, E. (2016). Multi-vendor loyalty programs: Influencing customer behavioral loyalty? Frontiers in Psychology, 7, 1–11.

    Google Scholar 

  • Vlačić, B., Corbo, L., & e Silva, S. C., & Dabić, M. . (2021). The evolving role of artificial intelligence in marketing: A review and research agenda. Journal of Business Research, 128, 187–203.

    Google Scholar 

  • Wagner, T., Hennig-Thurau, T., & Rudolph, T. (2009). Does customer demotion jeopardize loyalty? Journal of Marketing, 73(3), 69–85.

    Google Scholar 

  • Watson, G. F., Beck, J. T., Henderson, C., & Palmatier, R. (2015). Building, measuring, and profiting from customer loyalty. Journal of the Academic of Marketing Science, 43(6), 790–825.

    Google Scholar 

  • Wilson, K., Senay, I., Durantini, M., Sánchez, F., Hennessy, M., Spring, B., & Albarracín, D. (2015). When it comes to lifestyle recommendations, more is sometimes less: A meta-analysis of theoretical assumptions underlying the effectiveness of interventions promoting multiple behavior domain change. Psychological Bulletin, 141(2), 474–509.

    Google Scholar 

  • Wirtz, J., & Mattila, A. S. (2003). The effects of consumer expertise on evoked set size and service loyalty. Journal of Services Marketing., 17(7), 649–665.

    Google Scholar 

  • Wirtz, J., Mattila, A. S., & Lwin, M. O. (2007). How effective are loyalty reward programs in driving share of wallet? Journal of Service Research, 9(4), 327–334.

    Google Scholar 

  • Yao, S., Mela, C. F., Chiang, J., & Chen, Y. (2012). Determining consumers’ discount rates with field studies. Journal of Marketing Research, 49(6), 822–841.

    Google Scholar 

  • Yi, Y., & Jeon, H. (2003). Effects of loyalty programs on value perception, program loyalty, and brand loyalty. Journal of the Academy of Marketing Science, 31(3), 229–240.

    Google Scholar 

  • Yim, C. K., Tse, D. K., & Chan, K. W. (2008). Strengthening customer loyalty through intimacy and passion: Roles of customer–firm affection and customer–staff relationships in services. Journal of Marketing Research, 45(6), 741–756.

    Google Scholar 

  • Zhang, J., & Breugelmans, E. (2012). The impact of an item-based loyalty program on consumer purchase behavior. Journal of Marketing Research, 49(1), 50–65.

    Google Scholar 

  • Zhang, Z. J., Krishna, A., & Dhar, S. K. (2000). The optimal choice of promotional vehicles: Front-loaded or rear-loaded incentives? Management Science, 46(3), 348–362.

    Google Scholar 

Download references

Acknowledgements

The authors are thankful to Marnik G. Dekimpe, Grahame R. Dowling, Conor N. Henderson, Harald van Heerde, and Jie Zhang for their comments and advice on previous versions of this article.

Author information

Authors and Affiliations

  1. The University of Adelaide, Adelaide, SA, 5005, Australia

    Alex Belli

  2. The University of Queensland, QLD, 4072, St Lucia, Australia

    Anne-Maree O’Rourke

  3. HEC Montréal, 3000 chemin de la Côte-Sainte-Catherine, QC, H3T 2A7, Montréal, Canada

    François A. Carrillat

  4. UNSW Sydney, Sydney, NSW, 2052, Australia

    Ljubomir Pupovac & Valentyna Melnyk

  5. Rabobank Australia, 201 Sussex St, Sydney, NSW, 2000, Australia

    Ekaterina Napolova

Authors
  1. Alex Belli
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Anne-Maree O’Rourke
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. François A. Carrillat
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. Ljubomir Pupovac
    View author publications

    You can also search for this author in PubMed Google Scholar

  5. Valentyna Melnyk
    View author publications

    You can also search for this author in PubMed Google Scholar

  6. Ekaterina Napolova
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Alex Belli.

Additional information

Publisher's note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Dhruv Grewal served as Area Editor for this article.

Supplementary Information

Below is the link to the electronic supplementary material.

Supplementary file1 (DOCX 466 kb)

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Belli, A., O’Rourke, AM., Carrillat, F.A. et al. 40 years of loyalty programs: how effective are they? Generalizations from a meta-analysis. J. of the Acad. Mark. Sci. 50, 147–173 (2022). https://doi.org/10.1007/s11747-021-00804-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11747-021-00804-z

Keywords

Search

Navigation