Welcome to Nerd Alert, a series of special episodes bridging the gap between marketing academia and practitioners. We’re breaking down highly involved, complex research into plain language and takeaways any marketer can use.
In this episode, Elena and Rob discuss how loyalty programs boost spending, especially among light and moderate buyers, when tailored rewards are offered. They learn that customizing incentives based on purchasing habits can enhance a program’s effectiveness.
Topics covered:
[00:50] “The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty”
[02:30] Loyalty program’s influence on buying patterns
[03:15] The difference between light, medium and heavy buyers
[04:50] Immediate rewards… for light buyers?
[07:15] Loyalty programs resemble a botanical garden
Resources: Liu-Thompkins, Yuping. (2007). The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty. Journal of Marketing - J MARKETING. 71. 19-35. 10.1509/jmkg.71.4.19.
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