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Are loyalty program members really engaged? Measuring customer engagement with loyalty programs

Author

Listed:
  • Virginie Bruneau
  • Valérie Swaen

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Pietro Zidda

Abstract

In a quest to engage customers in long-lasting relationships, many firms rely on loyalty programs (LPs). They do fairly well in acquiring new members of LPs, but firms often fail to engage them in the long term. This article seeks to understand what engagement in LPs is, how to measure it, and how it relates to company engagement. With four studies, the authors conceptualize LP engagement as six behavioral manifestations: proactively using cards, redeeming points, adapting purchase behavior, being receptive to information, sharing information, and searching for information. The 20-item scale proposed to measure these behaviors provides a viable, novel tool for determining customers' LP engagement. Whereas previous research on LPs mainly considers card usage or point redemption behaviors as proxies for customers' LP engagement, the current research shows that these behaviors are insufficient indicators of the actual level of engagement in LPs.

Suggested Citation

  • Virginie Bruneau & Valérie Swaen & Pietro Zidda, 2018. "Are loyalty program members really engaged? Measuring customer engagement with loyalty programs," Post-Print hal-02117696, HAL.
    • Handle: RePEc:hal:journl:hal-02117696
    DOI: 10.1016/j.jbusres.2018.06.002
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    Citations

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    Cited by:

    1. Minguez, Ana & Javier Sese, F., 2022. "Why do you want a relationship, anyway? Consent to receive marketing communications and donors’ willingness to engage with nonprofits," Journal of Business Research, Elsevier, vol. 148(C), pages 356-367.
    2. Septianto, Felix & An, Jake & Chiew, Tung Moi & Paramita, Widya & Tanudharma, Istiharini, 2019. "The similar versus divergent effects of pride and happiness on the effectiveness of loyalty programs," Journal of Business Research, Elsevier, vol. 99(C), pages 12-22.
    3. Elizabeth Emperatriz García-Salirrosas & Dany Yudet Millones-Liza & Jorge Alberto Esponda-Pérez & Ángel Acevedo-Duque & Jessica Müller-Pérez & Lisette C. Sánchez Díaz, 2022. "Factors Influencing Loyalty to Health Food Brands: An Analysis from the Value Perceived by the Peruvian Consumer," Sustainability, MDPI, vol. 14(17), pages 1-16, August.
    4. Chen, Yanyan & Mandler, Timo & Meyer-Waarden, Lars, 2021. "Three decades of research on loyalty programs: A literature review and future research agenda," Journal of Business Research, Elsevier, vol. 124(C), pages 179-197.
    5. Cocco, Helen & Demoulin, Nathalie T.M., 2022. "Designing a seamless shopping journey through omnichannel retailer integration," Journal of Business Research, Elsevier, vol. 150(C), pages 461-475.
    6. Faramarzi, Ashkan & Bhattacharya, Abhi, 2021. "The economic worth of loyalty programs: An event study analysis," Journal of Business Research, Elsevier, vol. 123(C), pages 313-323.
    7. Han, Xiaoyun & Zheng, Yundan & Prentice, Catherine & Chen, Shuping, 2024. "Firm engagement: Scale development and verification," Journal of Retailing and Consumer Services, Elsevier, vol. 80(C).
    8. Blanca I. Hernández-Ortega & Michael A. Stanko & Rishika Rishika & Francisco-Jose Molina-Castillo & José Franco, 2022. "Brand-generated social media content and its differential impact on loyalty program members," Journal of the Academy of Marketing Science, Springer, vol. 50(5), pages 1071-1090, September.
    9. Meyer-Waarden, Lars & Bruwer, Johan & Galan, Jean-Philippe, 2023. "Loyalty programs, loyalty engagement and customer engagement with the company brand: Consumer-centric behavioral psychology insights from three industries," Journal of Retailing and Consumer Services, Elsevier, vol. 71(C).
    10. Qi, Ji (Miracle) & Wang, Sijun & Lindsey Hall, Kristina K., 2023. "Bridging employee engagement and customer engagement in a service context," Journal of Business Research, Elsevier, vol. 160(C).
    11. Li, Chen & Swaminathan, Srinivasan & Kim, Junhee, 2021. "The role of marketing channels in consumers’ promotional point redemption decisions," Journal of Business Research, Elsevier, vol. 125(C), pages 314-323.
    12. Steinhoff, Lena & Zondag, Marcellis M., 2021. "Loyalty programs as travel companions: Complementary service features across customer journey stages," Journal of Business Research, Elsevier, vol. 129(C), pages 70-82.
    13. Dariusz Dudek & Marcin Lipowski & Ilona Bondos, 2021. "Changing Energy Supplier on the Market with a Strong Position of Incumbent Suppliers—Polish Example," Energies, MDPI, vol. 14(13), pages 1-16, June.
    14. Lim, Weng Marc & Rasul, Tareq & Kumar, Satish & Ala, Mamun, 2022. "Past, present, and future of customer engagement," Journal of Business Research, Elsevier, vol. 140(C), pages 439-458.
    15. Rahman, Mahabubur & Faroque, Anisur R. & Sakka, Georgia & Ahmed, Zafar U., 2022. "The impact of negative customer engagement on market-based assets and financial performance," Journal of Business Research, Elsevier, vol. 138(C), pages 422-435.
    16. Gao, Mengjia & Huang, Lin, 2021. "Quality of channel integration and customer loyalty in omnichannel retailing: The mediating role of customer engagement and relationship program receptiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).
    17. Kumar, Vikas & Kaushik, Arun K., 2022. "Engaging customers through brand authenticity perceptions: The moderating role of self-congruence," Journal of Business Research, Elsevier, vol. 138(C), pages 26-37.
    18. Yu, Weiping & Han, Xiaoyun & Ding, Lei & He, Mingli, 2021. "Organic food corporate image and customer co-developing behavior: The mediating role of consumer trust and purchase intention," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    19. Andreea MARIN-PANTELESCU & Monica Ioana TOADER & Sorinel CÃPU?NEANU, 2019. "Customer Loyalty Programs For The Hospitality Industry And Their Implications On Hotel Revenues," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 367-373, November.
    20. Knoppen, Desirée & Saris, Willem & Moncagatta, Paolo, 2022. "Absorptive capacity dimensions and the measurement of cumulativeness," Journal of Business Research, Elsevier, vol. 139(C), pages 312-324.

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