Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
880144 | International Journal of Research in Marketing | 2015 | 4 Pages |
Abstract
Referral programs have become a popular tool to use the customer base for new customer acquisition. We replicate the work of Schmitt et al. (2011) who find that referred customers are more loyal and valuable than customers acquired through other channels. While our results confirm that rewarded referrals indeed reduce the risk of customer churn, we do not find that referred customers are necessarily more valuable. Analysis of the relationship between senders and receivers of referrals demonstrates that demographic similarity drives the referred customer value.
Related Topics
Social Sciences and Humanities
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Marketing
Authors
Guillermo Armelini, Christian Barrot, Jan U. Becker,