Customer Loyalty Schemes in the Retail Sector

Posted: 28 Feb 2012

See all articles by Jose B. Alvarez

Jose B. Alvarez

Harvard Business School, Marketing Unit

Aldo Sesia

Harvard Business School

Date Written: March 7, 2011

Abstract

Customer loyalty schemes (or programs) are explicit efforts by retailers to gain long-term patronage from customers. Loyalty schemes are developed for a variety of reasons: to reward loyal customers, to generate more robust information about customer behavior, to influence consumer behavior, and as a defensive measure to combat a competing scheme. The purpose of this note is to describe the objectives of these schemes, including their origin and evolution; to highlight key aspects of their implementation; and to suggest approaches to maximize their impact. While this note focuses on the U.S. and U.K. retail sectors, most of its content is applicable to other economies.

Learning Objective: Provide background on customer loyalty schemes in the U.S.

Suggested Citation

Alvarez, Jose B. and Sesia, Aldo, Customer Loyalty Schemes in the Retail Sector (March 7, 2011). Harvard Business School Marketing Unit Case No. 511-077. Available at SSRN: https://ssrn.com/abstract=2012755

Jose B. Alvarez (Contact Author)

Harvard Business School, Marketing Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Aldo Sesia

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States
617-496-2085 (Phone)

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