Current Trends and Future Research Implications and Directions of Customer Loyalty Programs

Abstract

Customer loyalty programs have influenced a huge impact on firms' customer relationship management strategies. Therefore, it is important for marketing managers to understand how loyalty programs increase customer loyalty and affect firms' profitability. In contrast to the importance of loyalty programs to firms and consumers, there is a lack of understanding and academic research on the effectiveness of loyalty programs. In addition, the research results about the effectiveness and profitability of the programs have suggested conflicting outcomes. To contribute to the resolution of these issues, this paper examines the concepts and related implications of loyalty programs, reviews and analyzes the previous studies to find areas related to future research, and proposes future research implications and directions for loyalty programs. Proposed future research directions are categorized in two main areas: achieving the reliability and validity of the research and expanding the research areas of loyalty programs.