11.2 | Practical implications
Although there are many directions for future research, the evidence at hand does deliver a very robust picture. The current paper provides a potential answer to the question of how to attract new loyalty program members: offer monetary rewards and stress them when trying to attract new members. The power of monetary loyalty programs holds also in industries to which nonmonetary programs would fit well (hospitality and beauty industries). Therefore, we assume that results generalize across industries. Customers seem to be genuinely attracted by the monetarism of rewards rather than their actual worth. It is, hence, likely pointless to make nonmonetary rewards seem more monetary by advertising their market value (see Study 3).
Notably, results indicate that the attractiveness of rewards is unaffected by consumers' consumption goals. It is therefore likely wasted effort to try and nudge consumers to adopt more hedonic (e.g., emphasizing experiential aspects of dining at a restaurant) or utilitarian (e.g., emphasizing value aspect of dining at a restaurant) mindsets before asking them to subscribe to a loyalty program.
The strong support found for monetary rewards does not mean that variations in the type of rewards offered are futile. The inclusion of nonmonetary rewards can help to stand out from rival loyalty programs or build consistency with the overall company image (Kumar & Shah, 2004; Meyer‐Waarden & Benavent, 2001). In addition, nonmonetary rewards may be at least as effective in generating actual loyalty among existing program members. Presumably, it is at this second step—actual membership—that the often suggested issue of congruency between the service and the rewards offered comes into play.
In a nutshell, when considering joining a loyalty program, customers are not looking to indulge but lured by money or anything close to it. What they are looking for once they have joined may well be a different matter.
