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Customer Loyalty Programmes

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The Palgrave Encyclopedia of Strategic Management

Abstract

To design and evaluate customer loyalty programmes, the firm must ensure that they create value in the mind of the consumer relative to their net cost. Some of that value must accrue to the firm and some to the consumer. Value to the firm can come from increased usage, greater share of wallet, increased average price, longer customer lifetimes, improved cross-selling and access to new customers. To the customer, the programme must offer net benefits in her/his mind relative to the competition.

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Author information

Authors and Affiliations

  1. University of New South Wales, Sydney, Australia

    John Roberts

Authors
  1. John Roberts
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Corresponding author

Correspondence to John Roberts .

Editor information

Editors and Affiliations

  1. GSBPP, Naval Postgraduate School, Monterey, CA, USA

    Mie Augier

  2. Berkeley Research Group, LLC, Emeryville, CA, USA

    David J. Teece

  3. Haas School of Business, University of California, Berkeley, Berkeley, CA, USA

    David J. Teece

Copyright information

© 2018 Macmillan Publishers Ltd., part of Springer Nature

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Cite this entry

Roberts, J. (2018). Customer Loyalty Programmes. In: Augier, M., Teece, D.J. (eds) The Palgrave Encyclopedia of Strategic Management. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-00772-8_715

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