Are your customers grateful? How customer gratitude impacts loyalty programme effectiveness

Abstract

PurposeThe purpose of this paper is to identify which loyalty programme (LP) benefits are most likely to create consumer gratitude and increase loyalty towards the brand for consumer goods and services loyalty schemes.Design/methodology/approachFrench-speaking Quebecer (Canada) members of retail LPs answered an online survey. The S-O-R framework was used to investigate the effects of LP benefits on customer loyalty to the brand through the mediating mechanism of gratitude. Data analysis was performed by means of partial least square structural equation modelling.FindingsThree benefits (entertainment, recognition and social) out of five were identified to significantly enhance customer gratitude towards the brand. Neither monetary nor exploration benefits had a direct effect on gratitude or loyalty. In addition, gratitude was positively and strongly related to loyalty and fully mediated the effects of entertainment and recognition benefits on loyalty. As for social benefits, gratitude complementarily mediated their relationship to loyalty.Practical implicationsThe findings are of utmost interest to LP managers. They offer valuable insights to maintain or modify LPs to enhance customer true loyalty. First, they highlight the strategic role of gratitude, which strongly determines customer loyalty. Second, this study's findings indicate which LP benefits should be prioritised to enhance customer gratitude and loyalty.Originality/valueThis research is the first empirical attempt to study the effects of LP perceived benefits on customer gratitude. It addresses the paucity of research on customer gratitude and enhances its importance in retail and relationship literature.