The Introduction of Loyalty Programs for the Retail Industry

Abstract

Customer loyalty presents a paradox. Many see it primarily as an attitude-based phenomenon that can be significantly influenced by customer relationship management initiatives such as loyalty and affiliation programs, increasingly. However, empirical research shows that loyalty in competitive repeat purchase markets is formed more by passive acceptance of brands than by strong attitudes about them. From this perspective, the potential for increased demand in loyalty programs is more limited than one might hope. In this article, by studying the literature, customer loyalty programs and its technologies are described under the title of three-stage model, which is mostly focused on the implementation stage. Finally, suggestions for better implementation of the cycle of loyalty programs are provided.