Loyalty Programs Do Not Increase Purchase: A Critically Appraised Topic

Businesses with repeat customers often offer rewards programs to foster customer loyalty
and engagement. Loyalty programs are designed to acquire and retain customers’ loyalty and,
depending on their complexity, can require a substantial investment of resources. Utilizing the
Critically Appraised Topic (CAT) approach, this article aims to investigate the impact of loyalty
programs on overall customer consumption. Despite their prevalence, the study suggests limited
evidence supporting the efficacy of loyalty programs. The findings indicate that loyalty programs
may not consistently yield positive changes in purchase behavior or lead to increased demand
directly.