Keeping Loyalty Programs Fit for the Digital Age

Publications

Download

How customer loyalty programs still work in the digital age

Suggested Citation

Dorotic, M. (2019). Keeping Loyalty Programs Fit for the Digital Age. NIM Marketing Intelligence Review, 11(1), 24-29. DOI: https://doi.org/10.2478/nimmir-2019-0004

Year

2019

Authors

Matilda Dorotic

Publication title

Keeping Loyalty Programs Fit for the Digital Age

Publication

NIM Marketing Intelligence Review

Download

Matilda Dorotic

Though some managers question the success of loyalty programs (LPs), the core idea of leveraging information gained through loyalty initiatives remains stronger than ever. But as LP membership penetration reaches all-time highs, customers demand more value from LPs.

LP managers should leverage opportunities that mobile devices offer in increasing the convenience and communication with LP members. The integration of LPs with digital payment systems like mobile wallets seems particularly promising. Another way to become more attractive is by forming partnerships with other companies at which customers can collect and/or redeem points. Such partnership LPs hold appeal for retailers, particularly if potential partners might benefit from synergies. In the future of linked data, companies further need to be more flexible in terms of the types of customer engagements that will be rewarded. Many companies already move towards rewarding not only on past transactions, but also activities on social media. In the digital age, customers still enjoy some form of loyalty rewarding and expect retailers to acknowledge their purchases as investments in relationships.

Authors

Matilda Dorotic, Professor of Marketing, Norwegian Business School, Oslo, Norway, matilda.dorotic@bi.no

Share Publication

Copy link

Here you can find more exciting articles of this issue.

To the entire issue

The retail sector is evolving from a structurally rather rigid and somewhat un-emotional mainstay in the economy to a most dynamic field …

With the rise of digital technologies, retailing has become a field of value co-creation. Rather than selling readymade products and …

Price differentiation is a longstanding marketing instrument in retailing. In our digital omni-channel environment its implementation may …

Big data are taking center stage for decision-making in many retail organizations. Customer data on attitudes and behavior across channels …

To remain competitive in a connected world, offline retailers have responded with integrating digital in-store technologies into their …

Visitors of an online retailer’s website leave digital traces. Every click and each interaction on the website generate information about …

Auction thrill for everybody – no matter if you are the buyer or seller – that´s what has made eBay famous and attractive in its early …

Scroll to top

Other articles of the MIR issue “The Future of Retailing”