Loyalty Programme Roulette: The Loyal, The Committed, And The Polygamous

Abstract

Loyalty programmes have two main aims, firstly to gather consumer data and secondly to create or maintain loyal behaviour amongst their customers. The aim of this study was to investigate the results of a loyalty programme and evaluate its effectiveness in encouraging loyal behaviour amongst members. In order to achieve this objective, a comparison was made between the loyal behaviour of members and non-members of a loyalty programme at a single clothing retailer by means of a structured questionnaire. Respondents were questioned about their perceived commitment to the retailer, their current purchase behaviour and their anticipated future behaviour with regards to long-term loyalty towards the retailer. In keeping with traditional loyalty theory, respondents were also asked to report on their willingness to recommend the retailer to their peers. The study showed that there is very little empirical evidence to support increased loyal behaviour as a direct result of loyalty programme membership. Evidence was presented however, that strongly supports a link between customers commitment to the retailer and their loyal behaviour regardless of their membership status.