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Jurnal

JOURNAL OF MARKETING ANNIVERSARY

Keyword

customer referral programs, customer loyalty, customer value, customer management, word of mouth, social networks

Pengarang

  1. Philipp Schmitt
  2. Bernd Skiera
  3. Christophe Van den Bulte

    Subject

    MARKETING

    [Abstrak]

    Referral
    programs have become a popular way to acquire customers. Yet there is no
    evidence to date that customers acquired through such programs are more
    valuable than other customers. The authors address this gap and investigate the
    extent to which referred customers are more profitable and more loyal. Tracking
    approximately 10,000 customers of a leading German bank for almost three years,
    the authors find that referred customers (1) have a higher contribution margin,
    though this difference erodes over time; (2) have a higher retention rate, and
    this difference persists over time; and (3) are more valuable in both the short
    and the long run. The average value of a referred customer is at least 16%
    higher than that of a no referred customer with similar demographics and 
    time
    of acquisition. However, the size of the value differential varies across
    customer segments; therefore, firms should use a selective approach for their
    referral programs.

    Periode

    Vol 75, Nomor 1, Tahun 2011

    [Berkas]

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