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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?
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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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