FlyerTalk Forums - View Single Post - Stanford Business School Research on Loyalty Programs
Old Jul 28, 2001 | 10:22 am
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greg99
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">The research has relevance to the design, targeting and promotion of frequency programs. "One main implication is that, for a low amount of points or requirements, you want to offer relatively more necessity rewards," says Kivetz. "For higher requirements you want to increase the relative amount of luxuries in the reward mix." Tiered programs are one solution. For example, a supermarket might offer a $50 food voucher for consumers who spend a total of $2,000. Consumers who spend $20,000 can be given the option of earning a three-day trip to Las Vegas. In addition, "a company could personalize the rewards depending on the members' individual level of effort," says Kivetz.</font>
OK, I recognize that I didn't read the entire study, and the summary might not have done it justice, but I'm trying to figure out what advance to scholarship was made here.

(BTW, Tute - that wasn't a crack at you - just the study).

Greg
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