Research seminar: Leveraging Progress Feedback in Recurrent Multi-Tier Loyalty Programs

Leveraging Progress Feedback in Recurrent Multi-Tier Loyalty Programs: A Multiple Reference Points Approach

By Yuping Liu-Thompkins from Old Dominion University

Monitoring and communicating progress is an important mechanism for motivating individuals. In a loyalty program setting, knowing how to do so well is important to improving program effectiveness. Previous research distinguishes between feedback that emphasizes what individuals have accomplished (i.e., backward framing) versus what remains to be done (i.e., forward framing). Adopting a multiple reference points approach, this research aims to provide a deeper understanding of how such progress feedback framing affects the way individuals evaluate their progress in multi-cycle, multi-tier loyalty programs. Based on a field experiment and secondary analyses of a frequent flyer program data, we find that progress feedback can alter the relative salience of different reference points. While backward feedback accentuates current journey milestones and historical reference points, forward feedback makes aspirational reference points more salient. The net effect of progress feedback depends on which reference points are made more salient and what the individual’s relative position is to those reference points. Our research suggests a need to reconsider the typically standardized approach to reporting consumer progress in loyalty programs.

Yuping Liu-Thompkins bio (from Old Dominion University)

Dr. Yuping Liu-Thompkins specializes in building customer loyalty and habit through effective marketing programs. She has worked with many consumer datasets to derive customer insights and actionable marketing strategies.

Expertise

• Customer Relationship Management
• Customer Loyalty / Consumption Habit / Loyalty Programs
• Internet Marketing
• Social Media / Internet Marketing / Interactive Communications

Research Interests

Consumer Loyalty and Habit, Loyalty Programs, and Internet Marketing