Shopping for loyalty: an executive's wish list

Abstract

Purpose

The purpose of this paper is to present a blueprint for loyalty strategy development, and to inform the reader of the basic and not so basic elements that should be considered by companies, academics and executives when determining the future effectiveness and success of a customer loyalty program.

Design/methodology/approach

The paper draws on author expertise and know‐how, as well as past experiences and market trends, to present a compelling review of necessary elements for a customer relationship program.

Findings

Before embarking on a loyalty program design companies should be wise to set long‐ and short‐term goals to drive the initial strategy. One should avoid launching a “me too” program by differentiating from one's close competitors. Implement a strategy from top to bottom across the organization. Data and customer engagement are the most important elements to foster.

Practical implications

A well‐planned and executed loyalty strategy can boost growth in incremental sales, increase in‐store traffic, drive higher impact from promotions and significantly boost overall revenues. Customer relationship marketing can also lead to richer data insights about current customers and high‐value potential customers.

Originality/value

An executive with decades of experience building and maintaining customer loyalty programs cites trends for the future of the loyalty discipline.

Citation

Kerr, B. (2009), "Shopping for loyalty: an executive's wish list", Journal of Consumer Marketing, Vol. 26 No. 1, pp. 49-51. https://doi.org/10.1108/07363760910927046