As our latest guest for our Research Seminar Series we welcomed Sarah Gelper from the University of Luxemburg. She shared her recent work on temporary loyalty programs in retail.

Many supermarket chains employ temporary loyalty programs as a strategic marketing tool. Such programs aim to foster customer engagement and encourage repeat purchases within a defined timeframe. In one common format, known as a stamp-based program, customers earn stamps based on their spending. Once a set number of stamps is collected, they can redeem them for substantial discounts on a selection of external products, such as cookware. Another format, the instant temporary loyalty program, involves customers receiving collectible items like stickers or figurines based on their spending.

Previous research by Sarah has demonstrated the advantages of these loyalty programs for retailers. In her presented study, she and her co-authors built on this work and delved into the impact of combining product and brand promotions with temporary loyalty programs. For example, customers may receive extra stamps, figurines, or stickers when they purchase a specified quantity of products from a particular brand. Sarah’s findings indicate that such loyalty program promotions yield benefits for the brans involved, akin to offering a 30% price discount. However, when combines with price discounts, the results reveal negative synergy effects.

Thank you, Sarah, for your visit and sharing your work with us!