Designing and effectively managing customer-centric loyalty programs

J. Andrew Petersen, Rajkumar Venkatesan, Farnoosh Khodakarami

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Scopus citations


Loyalty programs are often considered an essential part of a firm's marketing strategy. The premise of loyalty programs is that they enhance customer relationships and increase customer profitability by offering customers rewards for their repeat purchases. Despite these expectations, several empirical studies and industry reports suggest that loyalty programs can have either a small or no effect on customer behavior. Thus, the goal of this chapter is twofold. First, provide a review of the literature in two substantive areas: loyalty program design and loyalty program management. Second, we want to give some guidance on discussing research opportunities to extend our understanding of customer-centric loyalty programs. Specifically, we will focus on designing and managing a customer loyalty program in a competitive market.

Original languageEnglish (US)
Title of host publicationHandbook on Customer Centricity
Subtitle of host publicationStrategies for Building a Customer-Centric Organization
PublisherEdward Elgar Publishing Ltd.
Number of pages27
ISBN (Electronic)9781788113601
ISBN (Print)9781788113595
StatePublished - Jan 1 2019

All Science Journal Classification (ASJC) codes

  • General Economics, Econometrics and Finance
  • General Business, Management and Accounting


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