Skip header navigation


Reward Redemption Behaviour in Retail Loyalty Schemes

Smith A & Sparks L (2009) Reward Redemption Behaviour in Retail Loyalty Schemes. British Journal of Management, 20 (2), pp. 204-218.

In most retailer loyalty schemes, cardholders obtain ‘points’ based on their purchases. These points may be redeemed for rewards. This paper uses individual cardholder transaction records from a leading UK retailer and a related qualitative study to investigate this redemption behaviour. It provides a description and taxonomy of reward redemption behaviour, including non-redemption. Amongst those that do redeem points, different types of redemption behaviour are found. Cluster analysis produced a three cluster solution. Explanations of this behaviour and the taxonomy are developed through the qualitative research. Implications for loyalty scheme management and research into loyalty schemes are identified.

loyalty schemes; retailing; consumer behaviour; redemption; management; Business logistics; Delivery of goods Management; Industrial management; Business logistics

British Journal of Management: Volume 20, Issue 2

Author(s)Smith, Andrew; Sparks, Leigh
Publication date30/06/2009
PublisherWiley-Blackwell / British Academy of Management
Scroll back to the top