Description: Customers are unhappy when their favorite retailers make it harder to earn rewards, as Starbucks, Dunkin’ and Best Buy have recently done. But firms have to walk a fine line between customer loyalty and profits, says Wharton’s Raghuram Iyengar.
Date: Feb 14, 2023
Questions for discussion:
- What does the research say about the value of loyalty programs and their relationships with customers, sales and profitability?
- What advice is directed to firms using these programs? Do you agree?