Can Non-tiered Customer Loyalty Programs Be Profitable?

Arun Gopalakrishnan · Zhenling Jiang · Yulia Nevskaya · Raphael Thomadsen

33 citations0/0 files storedMarketing Science

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Customer Service Quality and Loyalty Consumer Market Behavior and Pricing Customer churn and segmentation

Abstract

We show that a simple, nontiered loyalty program can substantially increase customer lifetime value and that most of this benefit comes from increasing customer retention.

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References

2005The Ties That Bind: Measuring the Strength of Consumers’ Emotional Attachments to Brands 2001Investments in Consumer Relationships: A Cross-Country and Cross-Industry Exploration 2000Implications of Loyalty Program Membership and Service Experiences for Customer Retention and Value 1997Loyalty programs and their impact on repeat-purchase loyalty patterns 1987Counting Your Customers: Who-Are They and What Will They Do Next?2007The Long-Term Impact of Loyalty Programs on Consumer Purchase Behavior and Loyalty 2004The Influence of Loyalty Programs and Short-Term Promotions on Customer Retention 2005“Counting Your Customers” the Easy Way: An Alternative to the Pareto/NBD Model

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2020Refocusing loyalty programs in the era of big data: a societal lens paradigm 2022Consumer Loyalty Programs and Retail Prices: Evidence from Gasoline Markets

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