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Unformatted text preview: As a result, Zolfaghari and Gandomi
developed a mathematical model that measures their effectiveness.
"Loyalty programs entice people to become, and remain, customers," says Zolfaghari. "Our model
demonstrates that if average customer satisfaction increases over time there is less incentive for a company
to offer a loyalty program. Essentially, your customers are already happy with you."
The finding may seem intuitive, Zolfaghari says, but up until now there hasn't been a scientifi...
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- Spring '13