Loyalty marketing and loyalty cards: a study of the Italian market

Purpose Loyalty programmes are an important tool with which retail companies manage relationships. While the last fifteen years have seen a broad dissemination of loyalty programs in new sectors and new countries, since the early 2000’s, both in the academic and managerial world, the power of loyalty programmes to stimulate retention and support loyalty, has been brought into question. The present contribution focuses on these elements, analysing data collected on a sample of loyalty cardholders. Design/methodology/approach – The article presents the results of an exploratory study focused on a sample of loyalty cardholders by means of telephone interviews. Findings – The empirical data demonstrates that loyalty is not created and supported by a loyalty programme and proves how weak and limited such programmes are, especially point collection programmes. Programme effectiveness can however be achieved if there is a continuous search for differentiation and through reduced loss (discounts) and extra gain (prizes) initiatives. Research limitations/implications – The analysis of what customers expect and how they behave towards programme innovations needs further empirical detail. For the future, qualitative research should be provided, as well as analyses of a higher number of socio-demographical variables and life-styles. Originality/value – The study provides empirical data on customer behaviour and opinion towards loyalty programmes. The present contribution focuses on these elements, analysing data collected on a sample of loyalty cardholders.