New to Loyalty Marketing? Start with These 2 Must-Read Articles
Just getting started in loyalty marketing? You’re not alone — and you don’t need to reinvent the wheel. Whether you’ve just been handed a program to run or want to understand what loyalty really means in business terms, these foundational reads will get you up to speed. From understanding the shift to digital loyalty, to unpacking the economics behind program design, these articles will help you build a solid base — fast.
1. HBR: E-Loyalty – Your Secret Weapon on the Web
The reason why we love it because it brought the fact that Loyalty isn’t just about satisfaction — it’s about reducing churn and increasing the long-term value of each customer. This classic HBR article explores how digital businesses can build lasting customer relationships through e-loyalty. It shows that acquiring online customers is expensive — but keeping them is where real profit lies. The article presents research-backed insights on how retention drives ROI, why customer experience is central to loyalty, and how loyalty economics work differently in online environments.
2. Customer Capital: The Nuances & Complexities of Loyalty Economics
The key takeaway of the article is that successful loyalty programs are grounded in a deep understanding of customer behaviour, strategic cost management, and continuous optimisation to drive long-term profitability. This article delves into the multifaceted nature of loyalty economics, emphasising that effective loyalty programs require more than just offering rewards. It highlights the importance of understanding customer lifetime value, balancing program costs with returns, and leveraging behavioural economics to design compelling incentives. The piece also underscores the necessity of data-driven personalisation, continuous program optimisation through testing, and the complexities introduced by partnerships and co-branding initiatives. Overall, it provides a comprehensive overview of the strategic considerations essential for building profitable and sustainable loyalty programs.
