Global implications of cause-related loyalty marketing

Abstract

PurposeLoyalty programs (LPs) worldwide are maturing even as such programs are growing at a sluggish pace and losing appeal among consumers. This creates a need (and a potential opportunity) for firms to redesign their LPs that better resonates with their customers. The purpose of this paper is to identify that reorienting LPs to focus on societal and environmental causes, in addition to economic causes, can revive the growth of LPs.Design/methodology/approachThis study uses a triangulation approach to integrate knowledge from past research, managerial insights and the popular press that is used in two ways. First, this study identifies a dominant logic in the evolution of LPs toward a focus on societal and environmental causes. Second, based on this evolving logic, this study advances a framework to design cause-related LPs that is an integration of a firm’s economic, societal and environmental imperatives.FindingsThe proposed framework submits that designing a LP consisting of tangible and intangible characteristics will lead to the increased adoption of LPs by the focal industry firms, and the increased acceptance of LPs by customers across all focal industry firms, while moderated by the competitive pressure faced by firms, and the prevailing regulatory framework. Further, the adoption and acceptance of LPs by firms and customers, respectively, will lead to the realization of established LP outcomes, while moderated by the intensity of customer usage.Research limitations/implicationsBased on the proposed framework, this study identifies important implications for customers, firms, society and the environment worldwide in redesigning their LPs.Originality/valueBy integrating various sources of knowledge (academia, business and press) from multiple domains (e.g. marketing, sociology, environmental studies and finance), this study presents an integrative framework that presents a holistic approach in redesigning LPs.