17 Aug Loyalty Programs, CLV, and RFM
In a recent INFORMS Marketing Science article, Arun Gopalakrishnan of Rice University and his colleagues completed a study based on a national hair salon regarding the impact of a simple loyalty program. The big surprise to Professor Gopalakrishnan was that the loyalty program "didn’t increase the value of this program by getting people to go to the stores more often or spend more money on their visits, the main upside of the program was it got people to stick around with the firm as opposed to walking out and taking their business to other competitors."...