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

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  • Wolters, Heike M.
  • Gedenk, Karen

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.

Suggested Citation

  • Wolters, Heike M. & Gedenk, Karen, 2019. "Referral Programs and Customer Value: Insights from the Telecommunications Services Industry," Journal of Marketing Behavior, now publishers, vol. 3(4), pages 335-353, January.
  • Handle: RePEc:now:jnljmb:107.00000054
    DOI: 10.1561/107.00000054
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    Keywords

    Marketing behavior;

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