University of Twente Student Theses


LOYALTY PROGRAMS: how to apply most effectively : comparison of theory and practice

Stuivenberg, Robin (2015) LOYALTY PROGRAMS: how to apply most effectively : comparison of theory and practice.

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Abstract:There are a lot of theoretical frameworks and guidelines about how to ensure a loyalty program to be effective. These frameworks and guidelines all differ from each other, they even contradict at some points. In practice companies often misunderstand or misapply loyalty programs. There is no systematic knowledge about the nuances of which practitioners think that they contribute to an effective loyalty program. This empirical research of qualitative nature combines the most important aspects from literature and tests them in practice. This enables the scattered frameworks and guidelines to form the first step to unity. It also collects and analyzes the nuances from practitioners concerning the key aspects needed in order to apply a loyalty program most effectively. This research is conducted due to a qualitative field research that contains six case studies of varying companies that have an active loyalty program. The results show that there are fourteen key aspects that need to be taking into account when one wants to apply a loyalty program most effectively. The key aspect ‘developing relationships’ can be considered as the most important aspect. This means that this aspect requires more attention when applying a loyalty program and striving for effectiveness. However, there are also nuances to these key aspects. The nuances to the key aspect ‘developing relationships’ vary from each other. Whereas one aims to improve current customer relationships, another prefers to build sustainable customer relationships for the long term. There are also more practical nuances like putting saved points on the customers’ receipt when he/she forgot to bring the card. This research contributes to literature with its qualitative nature due to the nuances that spice up the results of this study. It also creates a first structure within the divided research area of loyalty programs. This paper is written for anyone who is interested in loyalty programs and in how to apply them most effectively in practice. However, it can also be used as a guideline to help practitioners making their loyalty program effective.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:70 social sciences in general, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
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