Missing signs, incomplete displays and unavailable rewards can undermine a retail loyalty campaign, according to research that tracked how a temporary program was carried out in stores.
The study, published in the Journal of Retailing, linked differences in store-level execution with sales patterns and reward redemption. Its findings highlight a practical question for marketers: can employees and customers use the promotion as it was designed?
The evidence comes from one temporary loyalty program. The observed relationships should not be treated as a guaranteed estimate of losses at every retailer or proof that a single missing sign caused a particular decline.
What happens between planning and the shop floor
Temporary loyalty programs give shoppers a limited period to collect points or stamps and claim a reward. Their success depends on customers noticing the offer, understanding the requirements and being able to obtain the reward.
Suzanne Bies, Nick Bombaij, Bart Bronnenberg and Els Gijsbrechts combined information about in-store execution with sales data from before, during and after a program. The researchers examined signs, displays, staff support and reward availability.
They reported widespread gaps in execution and documented patterns of sales losses and changes in reward redemption associated with those gaps. Operational conditions and demand intensity were also linked to the level of store engagement.
A campaign can therefore look consistent in a central marketing plan while appearing quite different to customers across locations. A shopper cannot respond to a display that was never installed, and a customer who has earned a reward may be frustrated if it is unavailable.
Availability is part of the promise
Reward availability matters because loyalty programs ask customers to act over time. Someone may make repeated purchases in order to reach a threshold. If the reward is difficult to claim, the problem can affect both the immediate transaction and confidence in future offers.
Retailers can compare projected demand with stock and delivery capacity before launch. During the campaign, store teams need a practical way to report shortages and explain what customers can do if a reward is unavailable. These are operational suggestions, not interventions tested separately in the study.
The design of the reward itself also matters. MBN’s guide to customer loyalty explains the wider relationship between repeat purchases and customer experience.
Measure delivery as well as results
A retailer assessing a promotion might track whether signs are in place, staff understand the rules, displays are accessible and rewards remain in stock. Those checks can sit alongside sales, participation and redemption figures.
Comparisons between stores need care. Busy locations, staffing differences and local demand may affect both execution and sales. A weak result should not automatically be blamed on a particular employee or display.
A controlled trial, where practical, can help separate the effect of a campaign change from other differences. Managers should also consider the cost of improving execution and whether the same resources could produce better results elsewhere.
The study’s value is in showing that a promotion is not finished when its terms are approved. Its outcome also depends on the materials, inventory and support customers encounter when they visit a store.
