Author(s): Kopalle, Praveen K., Neslin, Scott A.

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This executive summary provides an overview of Professors Praveen Kopalle and Scott Neslin's recent study on customer reward and loyalty programs, created with our partner, IEDP, who produce Ideas for Leaders. 

Customer loyalty programs can be based on frequency rewards or customer tier benefits (e.g. special benefits when you reach a certain elite customer status). As companies try to decide which type of program is better, or if loyalty programs are even worth the trouble, new research shows a combination of both programs offer direct financial benefits, as well as better customer information for strategic decision-making.

Frequency Reward vs Customer Loyalty Programs

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