Why do customer attitudes towards loyalty programs matter a lot?

Recent figures show that, unless rising number of enrollments, consumers become less active and engaged with their loyalty programs (LPs). Firms tend to spend more time and money in enrollment campaigns than in managing relations with program members. As a result, customers are unaware of LP features, do not perceive the benefits and become or stay non-active. In order
to build real relationships, firms should first foster favorable attitude towards their LPs. This paper aims to understand how attitudes towards LPs are formed and how they impact behaviors. The results of our qualitative study show that LP attitudes are built up from the associations consumers make about LPs and that they are likely to drive their behavior with the program and the store. By understanding the formation of attitudes towards LPs, firms might create favorable attitudes, increase active memberships and subsequently build long lasting relationships.