Business, Management and Accounting
a year ago

Loyalty programs may backfire, making customers less loyal.

The International Review of Retail Distribution and Consumer Research
Retailers view on customer loyalty – a social resource theory perspective
Stavroula Wallström, Sara Hjelm Lidholm, Malin Sundström

Paper Summary

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The study looks at how loyalty programs in retail might not actually create loyal customers. By talking to managers in Swedish retail companies, the researchers found that these programs can lead to customers only coming back for rewards, not because they are truly loyal. The key is to focus on building emotional connections with customers, rather than just giving out tangible rewards, in order to create real loyalty.