Abstract:

Commerce players have a compelling economic incentive to retain customers, because it is more expensive to acquire new customers than it is to retain existing ones. While companies have used a multitude of tactics to foster loyal relationships, special loyalty programs have experienced exceptional growth in the United States. While effective in driving transactions, these programs are often costly and inefficient. Consumers, in most cases, remain loyal when companies meet their needs and expectations, changing allegiance only when they experience a disappointment or they believe a superior alternative exists. Does loyalty manifest itself differently online than in traditional channels? What are commerce players doing effectively and ineffectively to drive loyalty? Will consumers be loyal to commerce players on the web? What solutions are available to implement loyalty strategies?