Comparing the effectiveness of rewards and individually targeted coupons in loyalty programs

Volume: 98, Issue: 3, Pages: 395 - 411
Published: Oct 1, 2022
Abstract
• Coupons produce 3x higher incremental revenue than loyalty program (LP) rewards. • Lower costs and higher revenue gains make coupons more profitable. • Coupon redemption → +1.3PP shopping trip incidence and +3.1PP kiosk access. • LP reward redemption → +5.0PP shopping trip incidence and +2.2PP kiosk access. • Coupons and rewards offer complementary benefits; firms should use both instruments. Loyalty programs (LP) and rewards are ubiquitous in...
Paper Details
Title
Comparing the effectiveness of rewards and individually targeted coupons in loyalty programs
Published Date
Oct 1, 2022
Volume
98
Issue
3
Pages
395 - 411
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