Tag: loyalty programs

ServiceFriday: Loyalty Programs as Competitive Tools

It is common practice to try and retain customers through loyalty programs (LPs) that typically offer rewards for continued business as incentives to stay with the company. LP’s, however, can be costly to service providers if the rewards can be easily replicated or lead to a price war. How, then, can service providers adequately offer …

ServiceFriday: The Double Edged Sword of Customer Loyalty Programs

As an important means of customer relationship management, loyalty programs are used widely by airlines, supermarkets, hotels, and many other industries with the goal of attracting and retaining loyal customers. In a paper published in the Journal of Services Marketing, authors Baolong Ma, Xiaofei Li and Lin Zhang explore a model for why and how …