Publications
Publications
- March 2011
- HBS Case Collection
Customer Loyalty Schemes in the Retail Sector
By: Jose B. Alvarez and Aldo Sesia
Abstract
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; Consumer Behavior; 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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