Communication strategies for multi-tier loyalty programs: The role of progress framing

Abstract

Drawing upon goal pursuit research and the social status literature, this paper examines an important and yet unexplored issue in multi-tier loyalty programs (MTLPs): how to use tailor-made progress feedback to motivate members to maintain their tier status. Three experiments conducted in different hospitality settings consistently reveal that an accumulated-focus (remaining-focus) feedback frame that highlights the completed (remaining) progress is more conducive in motivating low-tier (high-tier) members to retain their current tier level. Moreover, this research demonstrates that the progress-framing effects are mediated by confidence in tier status retention (concern for tier status loss) for low-tier (high-tier) members. This paper contributes to the loyalty program (LP) research and the broader customer relationship management literature by establishing progress framing as a strategic tool that can help hospitality and tourism firms retain existing members from different tiers.