What do customers get and give in return for loyalty program membership?

• We examine the influence of loyalty program value on customer loyalty.
• We identify six different types of value customers derive from loyalty program membership.
• We find that LP value differential impacts customer loyalty.
• We find that both program loyalty and brand loyalty positively drive behavioral loyalty.
• We find that loyalty program customization and membership duration moderate the program loyalty–brand loyalty relationship.

A successful loyalty program (LP) represents the firms' investment in long-term relationships with their customers. However, to be effective LPs must be perceived as valuable by customers. The purpose of this study is to examine the different types of value customers derive from LP membership and examine the relationship between program value, loyalty to the program, and loyalty to the brand (firm). Further, we examine the effect of program and brand loyalty on behavioral responses, including share of wallet, share of purchase, word of mouth, and willingness to pay more. The moderating effect of program customization and the duration of the customer's LP membership on the relationship between loyalty to the program and loyalty to the brand is also studied. Using a sample of 628 respondents drawn from the two largest stand-alone retail loyalty programs in Australia we find that LP value consists of six primary constructs which drive loyalty. Specifically, we find that value in the form of reward attractiveness, knowledge benefit, and required effort impacts LP members' perceived experiential benefits, which in turn impact program loyalty; while value derived from group belongingness and disclosure comfort drive brand loyalty. We also find that program loyalty influences brand loyalty; and program and brand loyalty together induce positive customer behaviors. However, program loyalty has a negative impact on a customer's willingness to pay. Our findings highlight the impact of multiple program value elements on customer loyalty, extending the literature by clarifying the relationships among program value, attitudinal loyalty, and behavioral loyalty. Practically, our findings suggest how managers can better design and implement their LPs to build customer loyalty.

Chinese abstract一个成功的忠诚度计划代表了公司对客户长期关系的投资。但是，要做到有效，这些计划必须得到客户的珍视。本研究旨在考察不同类型的有价值的客户从忠诚计划会员资格中所获得的东西，同时检审该计划的价值、对该计划的忠诚度及对品牌（公司）的忠诚度之间的关系。此外，我们还研究了计划和品牌忠诚度对行为反应（包括钱包份额、购买份额、口口相传及愿意支付更多）所产生的影响。其他的研究内容包括，忠诚计划的定制和客户长期会员身份的持续时间对计划和品牌的忠诚度之间关系所产生的调节效果。对来自澳大利亚两个最大的独立零售商的忠诚度计划的628位受访者进行了抽样调查，我们发现忠诚度计划的价值是由驱动忠诚的六个主要因素构成的。然而，计划忠诚度对客户的支付意愿则会产生负面影响。我们的研究结果强调了多个计划价值因素对顾客忠诚的影响，通过澄清计划价值、态度忠诚和行为忠诚之间的关系而做了进一步的文字说明。实际上，我们的研究结果表明了管理者应如何更好地设计和实施其忠诚度计划，以建立客户忠诚度。