Can Non-tiered Customer Loyalty Programs Be Profitable?

2021/03/18 by Arun Gopalakrishnan, Zhenling Jiang, Yulia Nevskaya +1 · 1 citation
Business, Management and Accounting · #Consumer Retail Behavior Studies #Customer Service Quality and Loyalty #Customer churn and segmentation

paper · doi:10.1287/mksc.2020.1268

openalex publication_date 2021/03/18 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/29

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.

Citations

• The Joint Sales Impact of Frequency Reward and Customer Tier Components of Loyalty Programs
• “Counting Your Customers” the Easy Way: An Alternative to the Pareto/NBD Model
• Do loyalty programs really enhance behavioral loyalty? An empirical analysis accounting for self-selecting members

Cited by

• Leveraging loyalty programs using competitor based targeting

Related

• Developing an Effective Customer Loyalty Program
• The effects of introducing and terminating loyalty programs
• Growing Existing Customers’ Revenue Streams through Customer Referral Programs
• The Joint Sales Impact of Frequency Reward and Customer Tier Components of Loyalty Programs
• Effectiveness of Loyalty Programs in Customer Retention: A Multiple Mediation Analysis