Loyalty programs (LPs) have increased in popularity, and have been studied extensively in the academic literature with mixed findings. Therefore, we offer an overview of extant research on LPs. We derive generalizations on the effectiveness and best design of LPs, discuss conditions that mediate and moderate the effects of LPs on customer behavior and attitudes, and highlight avenues for further research. Overall, we conclude that LPs are effective in increasing consumer purchase behaviors over time, but their impact differs across consumer segments and markets. Numerous practical examples illustrate the points discussed. Overall, this monograph provides insights to researchers and practitioners through a comprehensive, research-based synthesis of current knowledge. As a consequence, LP managers may better understand the implications of LP adoption, and ultimately improve the effectiveness of their LPs.

2. Definition of customer loyalty and loyalty programs -- 3. Conceptual framework -- 4. LP adoption by firms and customers -- 4.1 LP adoption by firms -- 4.2 LP enrollment by customers -- 4.3 Further research directions -- 5. Behavioral responses to LPs -- 5.1 LP effects on aggregate performance measures -- 5.2 LP effects on customer retention -- 5.3 LP effects on customer expenditures -- 5.4 Synthesis of behavioral responses to LPs -- 5.5 Further research directions -- 6. Attitudinal responses to LPs -- 6.1 LP effects on attitudinal loyalty -- 6.2 Further research directions -- 7. Points-pressure and rewarded behavior mechanisms -- 7.1 Reward-based mechanisms -- 7.2 The points-pressure mechanism -- 7.3 The rewarded behavior mechanism -- 7.4 Further research directions -- 8. Personalized marketing -- 8.1 Benefits of personalized marketing -- 8.2 Costs of personalized marketing -- 8.3 Relation between LP and other marketing instruments -- 8.4 Further research directions -- 9. Role of LP design -- 9.1 LP design -- 9.2 LP structure -- 9.3 Further research directions -- 10. Conclusion and discussion -- 10.1 Discussion of LPs from different perspectives -- 10.2 Conclusion -- References.