How new sustainability typologies will reshape traditional approaches to loyalty

Abstract

The benefits of segmentation and loyalty programmes are well established however Business-As-Usual (BAU) models, whether online or traditional, only focus on customers' contributions to the 'bottom line'. Sustainable Development (SD) is inextricably linked to consumers and whilst some studies allude to 'green' segmentation, there are no loyalty ladders or frameworks predicated on Elkington's Triple Bottom Line (TBL). This study aligns with those who think the TBL should be the thread that runs through sustainability research. It looks beyond the question of why firms adopt sustainability and instead consider how they do so by investigating the changes needed for loyalty models and frameworks. The paper is positioned in the overlap between the SD and marketing domains. It facilitates conceptualisation by addressing some of the terminological confusion inherent in sustainability studies. It provides a working definition of SD and a rationale for (and definition of) the preferred term Sustainable Marketing (SM). Assuming marketers want to work in a more sustainable fashion, they need to adapt existing models or adopt new versions. With adaptation representing a smaller change to marketers' modus operandi, it is deemed more likely to be adopted than a radical change. This is conceptualised using two schools of thought, namely the Developmental and Critical schools. This study is positioned in the critical school as it posits that the traditional models are no longer fit for purpose and need adapting or replacing. This approach provides better understanding of why sustainability models (or frameworks) are needed and the need to shape practice, thus going beyond academic theory. Then the paper is in two main sections; first it critiques the BAU building blocks needed for loyalty ladders, namely a marketing orientation and segmentation frameworks. This paper advocates improving loyalty by adopting sustainable building blocks. Hence the second section uses existing adaptations, namely a sustainable market orientation, a sustainable stakeholder typology and a TBL-based segmentation framework (APPROVES), to create a new TBL-based SM loyalty ladder. This will provide a platform for discussion and future research.

Management of Customer Lifetime Value in Organizations

“…Companies should try to ensure that customers trust the company or the brand. Research over the past 30 years has shown that trust is established and maintained through three important building blocks (Richardson, 2022). The first building block is competence.…”