Consumer learning as a determinant of a multi-partner loyalty program’s effectiveness: A behaviorist and long-term perspective

In this article, we argue that a loyalty program’s effectiveness depends on how the consumer learns to use its rules. The proposed theoretical framework was tested on the behavioral trajectories of 1380 individuals observed over a four-year period. The tendency of customers to spend more over four years became increasingly pronounced as they learned how to accumulate loyalty points and asked for these to be redeemed. This finding suggests that a loyalty program’s effectiveness does not depend on the program alone. To obtain the loyalty behaviors, firms should take specific measures to help their customers familiarize themselves with the program’s rules.