Podcast
Questions and Answers
Which concept is crucial in tier-based loyalty programs?
Which concept is crucial in tier-based loyalty programs?
- Recency Frequency and Monetary value (RFM) (correct)
- Customer Lifetime Value (CLV)
- Customer Relationship Management (CRM)
- Return on Investment (ROI)
Why do many brands prefer tier-based loyalty programs?
Why do many brands prefer tier-based loyalty programs?
- They are easy for customers to understand and join. (correct)
- They help increase customer lifetime value.
- They provide better return on investment.
- They allow for better customer relationship management.
What is the key to effective customer differentiation in tier-based loyalty programs?
What is the key to effective customer differentiation in tier-based loyalty programs?
- Providing special treatment and rewards to all customers
- Segmenting customers based on RFM (correct)
- Treating all customers the same way
- Encouraging non-active customers to return to the store
What do tier strategies in loyalty programs involve?
What do tier strategies in loyalty programs involve?
What is the purpose of establishing eligibility criteria for each tier in loyalty programs?
What is the purpose of establishing eligibility criteria for each tier in loyalty programs?
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