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 15 years have seen a broad dissemination of loyalty programmes in new sectors and new countries, since the early 2000s, both in the academic and managerial world, the power of loyalty programmes to stimulate retention and support loyalty, has been brought into question. The purpose of this paper is to focus on these elements, analyzing data collected on a sample of loyalty cardholders. Design/methodology/approach The paper presents the results of an exploratory study focused on a sample of loyalty cardholders by means of telephone interviews. Findings The empirical data demonstrate that loyalty is not created and supported by a loyalty programme and prove 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 paper provides empirical data on customer behaviour and opinion towards loyalty programmes.