The Wharton School Professor Peter Fader explains the beneficial relationship between offering loyalty programs and maximizing customer lifetime value.
EPISODE OVERVIEW
Wharton marketing professor Peter Fader explains that airlines generate much of their profitability from loyalty programs through partnerships with banks. He notes that Starbucks frequently changes its program, sometimes removing or reintroducing rewards, while Luckin Coffee relies on heavy discounts to build a customer base. McDonald’s designed its program to move from a transaction model to a relationship model. Fader emphasizes that loyalty programs provide better customer data, enable differentiated treatment, and should be tied to customer lifetime value, with AI helping identify top customers and design relevant perks.
PODCAST OVERVIEW
Every day, business scholars answer pressing questions in their research – but what do their insights mean for you? In this podcast, Wharton faculty dive into what inspired their studies and how their findings resonate with the world today. Learn how research insights translate into knowledge you can use, with host Dan Loney.
Learn more at http://whr.tn/rippleeffect.
#LoyaltyPrograms #Airlines #Starbucks #CustomerCentricity #BusinessGrowth #MarketingStrategy
—–
The Wharton School of the University of Pennsylvania is committed to sharing its intellectual capital through Knowledge at Wharton, the school’s online business analysis journal.
Launched in 1999, Knowledge at Wharton offers free access to:
– Articles, podcasts, and videos highlighting Wharton faculty research and analysis of current business trends
– Interviews with book authors from Wharton School Press
– In-depth series of curated content like Wharton Executive Education’s Nano Tools for Leaders
– A searchable database of more than 10,000 articles covering all aspects of business
– A weekly newsletter that delivers Knowledge at Wharton insights directly to your inbox
Visit the Knowledge at Wharton homepage: https://whr.tn/3qUpSBE
Subscribe to the Knowledge at Wharton YouTube channel: https://whr.tn/3DEAgAU
