Loyalty

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Customer Loyalty ProgramsMarketing > Customer Loyalty Programs

Abstract

This article examines the emergence of customer loyalty pro-grams during the 1900s as well as current perspectives on what companies should consider when launching a program. The processes of analyzing a company's business goals, customer preferences and habits, and the competitive environment prior to designing a customer loyalty program are reviewed. The impor-tance of aligning a customer loyalty program with business

goals, corporate philosophy, and corporate culture is examined. The option of exploiting social context or economic conditions to attract and reward customers is also reviewed. The process of evaluating and re-framing analytical models used to evaluate less than effective customer loyalty programs is explained.

Overview

Customer loyalty programs are generally viewed as long-term endeavors in which consumers can accumulate some type of a points that can later be redeemed for free merchandise, ser-vices, or discounts applied to future purchases. The more value that earned merchandise or services has for customers, the more attractive the program and the more likely customers will par-ticipate (Liu & Yang, 2009). The corporate goal of a customer loyalty program is to retain customers and derive more revenue from them in the future, ultimately increasing the profit of the firm (Noone & Mount, 2008). Many loyalty programs have shown some success in raising attitudinal loyalty as well as behavioral loyalty (Daams, Gelderman & Schijns, 2008).

Familiar Point ProgramsLoyalty programs have been around for a long time. It was in the 1920s that General Mills first started a program known as Betty Crocker points. Purchasers received points when buying various General Mills products such as cereal and flour. Betty Crocker points could be redeemed for kitchen utensils or other domestic products. In the 1950s, American tobacco companies launched loyalty programs, which involved placing coupons on the back of cigarette packs that could be redeemed for catalog items (Thomaselli, 2005).

S&H Green StampsThe S&H Green Stamps program was established by Sperry & Hutchinson Inc. in 1896. Over the next sixty-five years, the trading stamp became immensely popular and helped draw cus-tomers to Sperry & Hutchinson. In 1964 there were more S&H Green Stamps printed than postage stamps printed by the United States Post Office. The green stamps could be taken to a redemp-tion center and exchanged for merchandise.

At their peak, S&H Green Stamps were issued by more than eighty thousand retail outlets (Edwards & Keane, 1966). In 1957,

Abstract

Overview

Familiar Point Programs

S&H Green Stamps

Frequent-Flier Programs

Technology Helps

Applications

Building a Customer Loyalty Program

Getting a Loyalty Program off the Ground

Social Aspects of Loyalty Programs

Corporate Social Responsibility

Gift Cards

Issues

When Customer Loyalty Programs Wane

Conclusion

Terms & Concepts

Bibliography

Suggested Reading

Table of Contents


Customer Loyalty Programs

it is estimated that one of several competing trading stamps were issued with about 12 percent of all retails sales in the United States (Beem, 1957). However, the popularity of S&H Green Stamps also brought some burdens to the retail outlets that used them as a customer loyalty mechanism. Stamps were popular and therefore valuable and needed to be managed and controlled the same way as cash. The stamps also needed to be manually dispensed at the point of sale (Beem, 1958).

In 1968, the United States Federal Trade Commission (FTC) ruled that Sperry & Hutchinson, by then the largest company in the trading stamp industry, was guilty of unfair trade prac-tices. The United States Supreme Court upheld the FTC's power to make the ruling in 1972. The FTC contended that Sperry & Hutchinson had improperly controlled the maximum rate at which retail businesses could dispense trading stamps and that the company had combined with others in the trading stamp industry to regulate the rate of stamp dispensing. In addition, Sperry & Hutchinson had attempted to suppress the operation of trading stamp exchanges that redeemed stamps in gray market operations. The FTC ordered Sperry & Hutchinson to cease and desist from these practices (Werner & Griffiths, 1972).

As times changed, S&H Green Stamps became less popular and grocery stores started phasing out trading stamp programs, turning their attention to price-based promotions. Gasoline stations started phasing out the stamps during the 1973 petroleum crisis. In 1981, the founding family sold Sperry & Hutchinson (Barker, 2004).

Frequent-Flier ProgramsAmerican Airlines launched its customer loyalty program in 1981 called AAdvantage, the airline industrys first frequent-flier program. The benefit to customers was that they would gain points for miles flown and those points could be applied to free air travel tickets in the future. What was new and differ-ent about this loyalty program was that information technology was at the heart of the program. The technology allowed the air-line to easily track award points and for fliers to redeem their points (Hederstierna & Sallberg, 2009). Frequent-flier programs were established worldwide, with all major airlines implement-ing some type of rewards program. The frequent-flier programs, like many customer loyalty programs, have been revamped over the last twenty-five years as economic conditions have changed (Fickenscher, 1999; Field, 2009; Lederman, 2007).

Once the airline programs gained popularity, the concept of points and reward programs spread to most industries and is now common in travel, lodging, and dining (Noone & Mount, 2008; Russell, 2008). Loyalty programs are catching on across the board in consumer products and services firms and even in toy stores ("Loyalty in Toyland," 2008) and at the gas station (Belanger, 2008). Many leading brand companies have their own reward systems with loyalty cards, and Starbucks has been an innovator in developing new approaches on how reward cards can be used (Dollarhide, 2008).

Technology HelpsInformation technology such as point-of-sale systems in retail outlets, customer databases with purchasing history and contact information, and company websites that provide sales or service support have all expanded options to implement and maintain customer loyalty programs. Information technology also allows merchants as well as financial service companies to develop customized offerings to entice a wider variety of customers (Angrisani, 2008; Gallagher, 2008; Gillen, 2008).

These technologies have even helped to revive the once dying trading stamp, as S&H evolved from lick and stick stamps to a point system. S&H is now partnering with more than one hun-dred online retailers to provide an independent loyalty points exchange. Under the agreement, Points.com members can exchange miles or points from airlines, hotels, and other retailers into Greenpoints that can be used obtain items from the S&H rewards catalog including home goods, jewelry, and electron-ics. The S&H Greenpoints can also be redeemed at participating grocery stores ("Green Stamps Stick," 2004).

Although customer loyalty programs seem to be offered by businesses everywhere, building an effective program requires considerable effort and can be expensive. In addition, not all loyalty programs have been successful or cost effective. To determine if a company is achieving a good return on investment from a customer loyalty program requires continuous monitor-ing and analysis. When results are not adequate it is time to review what types of programs are attractive to customers and to revamp a program to meet changing customer expectations and desires.

ApplicationsBuilding a Customer Loyalty ProgramCompanies can increase sales volume by getting existing cus-tomers to buy more often and to buy greater quantities or by attracting new customers (Adams, 2008). Several factors can affect both sales strategies, including the type of product, eco-nomic conditions, and the perceived or actual need for a product (Pringle & Field, 2009). A well-designed customer loyalty pro-gram can contribute to repeat purchases by existing customers, help attract new customers, and influence the perceived need for and value of product.

However, designing an effective customer loyalty program requires a realistic and accurate definition of what a company wants to gain from the program. Without clear business goals it is difficult, if not impossible, to design an effective customer loyalty program and develop appropriate business systems to support the program. The business systems need to be capable of aiding in analyses to determine whether the program is effec-tive and if it provides a favorable return on investment (Nunes & Dreze, 2006).



A loyalty program is not a replacement for good service, ongoing positive customer relations, or failure to deliver upon promises or warranties (Wilson, 2006). In many ways management per-spectives need to be seriously retooled. The principle that a business is customer-satisfaction oriented as opposed to goods-production oriented is one that all managers must grasp. In other words, a business is its customers not its products (Levitt, 2004).

It is also important to have a real-world understanding of a com-pany's customers as well as a company's competitors. The design of an effective customer loyalty program will largely depend on how easy a product or service can be replicated by a competitor and how important price and customer service are to the buyer. In addition, company reputation and the status that customers gain from being a buyer or user of services offered can have a significant impact on creating emotional loyalty. An emotional attachment to a company or brand can drive behavioral loyalty and the higher the level of emotional loyalty the more likely a customer will be retained and repeat buying will continue (Hall-berg, 2004).

Marketers debate how a loyalty program should benefit a customer. Many, however, do not spend enough time on the emo-tional side of the loyalty equation. Hallmark observed this and, as a marketer of emotion-focused products, has stepped in to fill the emotional gap in many loyalty programs. The Hallmark Loy-alty division has more than fifty large corporate customers that purchase printed as well as electronic loyalty program elements. Hallmark e-cards are easy for corporate sales or communica-tions staff to send and provide a large profit margin for Hallmark (Applebaum, 2004).

When a loyalty program's success depends on the frequency of repeat purchases, then customers need to be motivated beyond a single purchase. Programs with such structures need to also have a consistent and frequent message that convinces the customer to view their relationship with the seller as a long-term relation-ship and that reinforces the point that a long series of purchases will reap a worthwhile reward (Lewis, 2004). But relationship building cannot be left up solely to the customer. Company staff should also be trained into the perspective that every transaction with a customer can build loyalty.

Getting a Loyalty Program off the GroundWhen loyalty programs have a strong technology element it is also possible to collect data on customers and design individual-ized marketing efforts. Such a closed-loop loyalty system enables a seller or service provider to access a database of customers in the loyalty program in order to implement targeted marketing programs. Vendor supported loyalty programs, of course, come with joining fees starting at about $300 and monthly fees at about $600 (Woodward, 2009).

Many large companies also offer co-branded credit cards through various banks. These programs usually provide some sort of point accumulation that can be redeemed for a product

or service. United Airlines, for example, offers a credit card that provides one point for every dollar spent using the card and the points can be redeemed for airline tickets. Amazon also intro-duced a co-branded credit card that provides points for dollars spent with the card and the points can be used towards purchases from Amazon.com. The co-branded card comes with consider-able expense to implement and to promote for a business. If the potential volume is not readily apparent, then the approach may not meet an organization's needs.

If a company decides to build its own loyalty program, or even if it chooses to contract with a loyalty program vendor, there are several principles to keep in mind during the process. Above all, a customer loyalty program should be built on the same business values, management beliefs and attitudes, and the basic business benefits that a company provides its customers (Fowler, 2003). It is also beneficial if a loyalty program is simple and straight-forward so customers can understand and relate to the reward benefits as well as be able to reap those rewards without exces-sive time and effort (Cebrzynski, 2006).

Social Aspects of Loyalty ProgramsThe social context of loyalty programs is a key factor to suc-cess. The business flyers who managed to keep the points they earned from business trips are able to translate these rewards into family vacations or trips to destinations of their choice. The pro-gram benefits are both obvious and easy to understand. Other programs that are more complex may be moderately successful but draw a relatively small number of participants.

Corporate Social ResponsibilitySince the environmental awareness movement was revitalized, energy efficiency, pollution, and environmental sustainability are increasingly important factors on the consumer radar. The green movement has also been incorporated into loyalty programs. A number of companies have added green rewards to their loyalty programs. A few of the pioneers in this approach were already marketing environmentally friendly products. However, it did not take long for a wide variety of companies (including airlines and banks) to start rewarding customers with some type of envi-ronmental points.

Typically a company using environmental points will support environmental programs through their corporate social respon-sibility (CSR) programs (Cummings, 2008). CSR activities have been used to address consumers' social concerns, create a favorable corporate image, and develop a positive relationship with consumers and other stakeholders (Yoon, Gurhan-Canli, & Schwarz, 2006).

Gift CardsThe use of gift cards as premiums or rewards has caught on rather significantly. American Express markets gift cards for all occa-sions and corporate bulk buyers can choose from a variety of themes for their gift cards (Hochstein, 2007). Gift cards are often given to customers, employees, or suppliers to help build loyalty.



As gasoline prices surged upward during the early years of the 2000s, several travel and lodging firms started a contextual mar-keting program involving free or discounted gasoline. Hotel chains with roadside locations that were convenient for the auto-mobile traveler were using gasoline gift cards as premiums. After three separate stays, guests would receive a fifty-dollar gasoline gift card from name-brand oil companies.

IssuesWhen Customer Loyalty Programs WaneRecent decades have certainly seen a huge growth in loyalty programs. The market has become saturated with programs, and more than 80 percent of the households in the United States are now participating or have participated in one or more rewards program ("Points Mania," 2008). Several retailers offer their own program making it easy for consumers to participate in loy-alty or rewards programs at virtually every turn, especially if they use a credit card for purchases. There are many potentially overlapping loyalty programs when credit cards that have point programs are used in retail outlets that also have point programs (Fredericks, Hurd & Salter, 2001).

Many customers are beginning to feel that many reward programs take too long to reap any real benefit (Mazur, 2007). There is also pressure on the companies that offer reward-oriented loyalty programs to provide more flexibility in programs and to increase the value of the reward provided to customers (Quittner, 2003).

Corporate executives are on the spot to demonstrate that there is in fact a real dollar return on investment for customer loy-alty programs (Dowling & Uncles, 1997). The basic methods of examining the results of a loyalty program are not always straightforward and many self-studies of the programs result in a rather shallow and self-serving analysis (Cigliano, Georgiadis, Pleasance & Whalley, 2000).

However, when results from a customer loyalty program are less than expected, it is important to refine measures of activity and success and to re-examine analytical models being used to mea-sure program results. Misleading information from internal as well as external sources can lead to faulty planning and execu-tion. In addition, weak measures and measurement gaps will result in inadequate data and ultimately inappropriate analyses (Crosby & Lunde, 2008).

The most typical problem that corporate executives face with customer loyalty programs is costs, which includes annual main-tenance costs as well as the impact of discounts that may be provided to customers through the program. The second chal-lenge that executives face is what to do with a loyalty program when they confirm that its costs are out of control and there is not a good return on investment or possibly a loss for the program. Many customers will view the curtailment of a loyalty program

as a betrayal, resulting in negative publicity (Cigliano, Georgia-dis, Pleasance & Whalley, 2000).

In addition, digging for answers about the effectiveness of a customer loyalty program is an expensive and time-consuming endeavor. Many companies conduct surveys of loyalty program members, while others conduct focus groups to answer basic questions and gain new insights (Wansink, 2003). These methods can provide important information about how customers view the loyalty program and what drives their participation. This type of feedback can be useful in designing promotional material or in deciding how to expand or modify an existing program.

Customer loyalty programs may very well be profitable in the short run. If they are not, then the cost-effectiveness of the pro-gram should be examined and gains to the company re-evaluated (Wansink, 2003). If one of the key factors to motivating par-ticipation is getting customers to view their participation as a long-term relationship, then the analysis of the return on invest-ment of a loyalty program should also be framed in long-term concepts and based on longitudinal analysis (Lewis, 2004).

Regardless of how company executives view their customer loyalty program, the behavioral and emotional responses of the customer are likely to be the most important measures of a program's success. Awards, accolades, and fame for launching a program that industry observers or marketing gurus' feel is cre-ative, novel, or unique have their appeal. They do not, however, make a customer loyalty program successful.

Conclusion

Customer loyalty programs provide consumers with a way to reap benefits from their buying behavior while simultaneously allowing retailers and service organizations to build a long-term relationship the customer. On the surface this seems to be a win-win situation. However, not all customers will repeat their buying behavior frequently enough to gain a reward and thus the seller may not recover the cost of gaining the new customer if discounts for programs participation were granted.

In addition to start-up costs, companies that offer customer loy-alty programs also face annual maintenance costs as well as any fees from vendors that are contracted to support the program. If sales volume is low for a particular year, a company could end up finding that the customer loyalty program may cost more money than the gain in revenue that it helped to generate.

Once corporate management determines that a customer loyalty program is not a profitable endeavor, they then need to figure out what to do about the problem. Once a loyalty program is established it may be difficult to terminate because of possible negative publicity such action may generate. It is also often diffi-cult to analyze why a loyalty program is not working, especially



if there is insufficient funds to conduct surveys or focus groups of participants.

Terms & Concepts

Attitudinal Loyalty: Customer or buyer loyalty that results in repeat buying as well as ongoing endorsements and recommen-dations of the product or service to others.

Behavioral Loyalty: Customer or buyer loyalty that results in repeat buying but does not generate ongoing endorsements of and recommendations of the product or service to others.

Frequent-Flier Programs: Airline customer loyalty programs that reward customers with points for miles flown. When enough points are accumulated the customer can trade those points for free travel, upgrades in class of seating, or other items or services offered by the airline or business partners.

Loyalty Cards: A card issued by a retailer that allows the cus-tomer to keep tally of the points gained in the loyalty program. Cards can be in paper form and can be punched at the time of purchase or in magnet/plastic form like a credit card, which can be swiped at the time of purchase to update the database of cus-tomer records of points accumulated.

Points: In a customer loyalty program, customers are rewarded for specific behaviors and those rewards are measured with a point system. In frequent- flier programs, customers are gener-ally given one point for every mile flown. In purchasing-oriented programs, customers are generally given one point for every dollar spent.

Price-based Promotions: These promotions the form of adver-tised discounts on selected items or store coupons that provide discounts on specific items. These promotions can be store- or chain-specific or can be supported in part by manufacturers or distributors of products.

Trading Stamps: A form of customer loyalty program in which the points accumulated took form of a postage-like stamp that were collected by customers and placed in a trading stamp book. When the trading stamp books were full, the customer could take them to a redemption center and trade the stamps for merchan-dise.

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Quittner, J. (2003). Loyalty programs' use and expectations rising. American Banker, 168(86), 6A. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=9689763&site=ehost-live

Russell, S. (2008). Retailers play loyalty card. B&T Magazine,58(2681), 24-28. Retrieved May 12, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=35876692&site=ehost-live

Thomaselli, R. (2005). Who really reaps mileage rewards? Advertising Age, 76(25), 12-12. Retrieved May 18, 2009, from EBSCO online database, Academic Search Complete. http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=17413795&site=ehost-live

Wansink, B. (2003). Developing a cost-effective brand loyalty program. Journal of Advertising Research, 43(3), 301-309. Retrieved May 13, 2009, from EBSCO online database,



Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=11126766&site=ehost-live

Werner, R., & Griffiths, L. (1972). Regulation of product char-acteristics. Journal of Marketing, 36(4), 64-65. Retrieved May 18, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=25298161&site=ehost-live

Wilson, J. (2006). Schulze: Service remains key to success. Hotel & Motel Management, 221(7), 4-13. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=20450373&site=ehost-live

Woodward, K. (2009). Revenue share, merchant coverage vital in loyalty program choice. ISO & Agent, 5(11), 12-13. Retrieved May 12, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=37325807&site=ehost-live

Yoon, Y., Gurhan-Canli, Z., & Schwarz, N. (2006). The effect of corporate social responsibility (CSR) activities on companies with bad reputations. Journal of Consumer Psychology, 16(4), 377-390. Retrieved May 20, 2009, from EBSCO online database, Academic Search Premier. http://search.ebscohost.com/login.aspx?direct=true&db=aph&AN=23087782&site=ehost-live

Suggested Reading

Beem, E., & Isaacson, L. (1968). Schizophrenia in trading stamp analysis. Journal of Business, 41(3), 340-344. Retrieved May 18, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=4584614&site=ehost-live

Brnn, P. (2008). Why aren't we measuring relationships? Communication World, 25(1), 32-34. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=28139954&site=ehost-live

Cohen, D. (1974). The concept of unfairness as it relates to advertising legislation. Journal of Marketing, 38(3), 8-13. Retrieved May 18, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=4996673&site=ehost-live

D'Aurizio, P. (2008). Southwest Airlines: Lessons in loyalty. Nursing Economic$, 26(6) 389-392. Retrieved May 12,

2009, from EBSCO online database, Academic Search Complete. http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=36452770&site=ehost-live

D.P. (2004). Macy's seeks to engage couples with rewards linked to bridal registry. Executive Technology, 6(8), 6-6. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=14197672&site=ehost-live

Fest, G. (2008). Retailers picking up tab to share in rewards. (cover story). Bank Technology News, 21(7), 1-31. Retrieved May 12, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=33355312&site=ehost-live

Flass, R. (2000). S&H ads tout update. Adweek Eastern Edition, 41(23), 10. Retrieved May 18, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=3261358&site=ehost-live

Garry, M. (2008). Revamp your loyalty program. SN: Supermarket News, 56(50), 40-42. Retrieved May 12, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=35880988&site=ehost-live

Gujarathi, M., & McQuade, R. (2003). Sun Airlines, Inc.: Financial reporting of point and loyalty programs. Issues in Accounting Education, 18(4), 359-368. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=11975622&site=ehost-live

Hays, J., & Hill, A. (2006). An extended longitudinal study of the effects of a service guarantee. Production & Operations Management, 15(1), 117-131. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=22404170&site=ehost-live

Hart, S., Smith, A., Sparks, L., & Tzokas, N. (1999). Are loyalty schemes a manifestation of relationship market-ing? Journal of Marketing Management, 15(6), 541-562. Retrieved May 21, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=2514538&site=ehost-live

Jakobson, L., & Casison-Tansiri, J. (2004). Loyalty link: Do reward program participants really want discounts? Incentive, 178(10), 9. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete.



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Lal, R., & Bell, D. (2003). The impact of frequent shopper programs in grocery retailing. Quantitative Marketing & Economics, 1(2), 179-202. Retrieved May 13, 2009, EBSCO online database, http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=16399192&site=ehost-live

Rahman, S. (2005). Loyalty in retail: A strategic success or a management failure. European Retail Digest, (48) 57-60. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=20398460&site=ehost-live

Rauch, M. (2006). Will they trust you tomorrow? Incentive, 180(9), 46-48. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=23144120&site=ehost-live

Schijns, J. (2008). Customer magazines: An effective weapon in the direct marketing armory. Journal of International Business & Economics, 8(3), 70-78. Retrieved May 12, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=35637613&site=ehost-live

Weiwei, T. (2007). Impact of corporate image and corporate reputation on customer loyalty: A review. Management Science & Engineering, 1(2), 57-62. Retrieved May 13, 2009, from EBSCO online database, Academic Search Complete. http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=32826012&site=ehost-live

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Wolfe, D. (2008). TSYS product takes rewards beyond cards. American Banker, 173(66), 8-8. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=31568566&site=ehost-live

Wood, A. (2004). Loyalty scheming. Utility Week, 22(13), 35. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=14951285&site=ehost-live

Zablah, A., Bellenger, D., & Johnston, W. (2004). Customer relationship management implementation gaps. Journal of Personal Selling & Sales Management, 24(4), 279-295. Retrieved May 13, 2009, from EBSCO online database, Business Source Complete. http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=16913026&site=ehost-live

Zhang, J., & Bruegelmans, E. (2012). The impact of an item-based loyalty program on consumer purchase behavior. Journal of Marketing Research, 49(1), 5065. Retrieved November 21, 2013 from EBSCO online database Business Source Premier. http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=70337969

Essay by Michael Erbschloe

Michael Erbschloe is an information technology consultant, educator, and author. He has taught graduate-level courses and developed technology-related curriculum for several universities and speaks at conferences and industry events around the world. Michael holds a masters degree in sociology from Kent State University. He has authored hundreds of articles and several books on technology.

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