Companies may not profit from offeringloyalty programs: studyProfessor Saeed Zolfhaghari and PhD candidate Amir Gandomi have developed amathematical model that evaluates the profitability of loylaty programs.A wallet full of loyalty and points cards is a common sight for many people. The results of a newstudy out of Ryerson University which examines the profitability of loyalty programs indicate thatsome companies may be better off not offering this type of customer incentive.Saeed Zolfaghari, professor and director of the industrial engineeringprogram at Ryerson University, andPhD candidate Amir Gandomi, co-authors of the study, discovered that despite the high rate of participationin loyalty programs there has been little analytical research to date. As a result, Zolfaghari and Gandomideveloped a mathematical modelthat measures their effectiveness."Loyalty programs entice people to become, and remain, customers," says Zolfaghari. "Our model
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