Referral Programs and Customer Value: Insights from the Telecommunications Services Industry

Heike M. Wolters and Karen Gedenk

Journal of Marketing Behavior, 2019, vol. 3, issue 4, 335-353

Abstract: Schmitt et al. (2011) (SSV) compare contribution margin, churn, and customer value of bank customers acquired through a referral reward program to those of non-referred customers. This article replicates their study with a product that is less complex and risky. Consistent with SSV, referred customers churn less, but in contrast to SSV, they exhibit smaller contribution margins than non-referred customers. New customers referred via email have a lower customer value than non-referred new customers.

Keywords: Marketing; behavior (search for similar items in EconPapers)
Date: 2019
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