Background Note | HBS Case Collection | 2011
by Jose B. Alvarez and Aldo Sesia
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.
Keywords: Customer Relationship Management; Business History; Goals and Objectives; Marketing Strategy; Consumer Behavior; Planning; Motivation and Incentives; Business Strategy; Retail Industry; United Kingdom; United States;
Citation:
Alvarez, Jose B., and Aldo Sesia. "Customer Loyalty Schemes in the Retail Sector." Harvard Business School Background Note 511-077, March 2011.
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Case | HBS Case Collection | 2013 (Revised from original 2013 version)
Mutti Spa
Jose B. Alvarez, Carin-Isabel Knoop and Mary Shelman
Keywords: Agribusiness; strategy; Plant-Based Agribusiness; Family Business; Competitive Strategy; Global Strategy; Retail Industry; Agriculture and Agribusiness Industry; Italy;
Creating a Luxury Experience at Value Retail
Jose B. Alvarez and Matthew Preble
Keywords: retailing; tourism; luxury; brand building; brand positioning; brands and branding; real estate; Brands and Branding; Human Resources; Retail Industry; Tourism Industry; Real Estate Industry; Europe; China;
Case | HBS Case Collection | 2013 (Revised from original 2012 version)
H-E-B: Creating a Movement to Reduce Obesity in Texas
Jose B. Alvarez, Jason Riis and Walter J. Salmon
Keywords: Corporate Social Responsibility and Impact; Profit; Leading Change; Customer Focus and Relationships; Food and Beverage Industry; Retail Industry; Texas;