Referrals · Analytical model informed by customer referral economics
Customer Referral Management: Optimal Reward Programs
Marketing Science · 2001
Summary
Referral rewards can be profitable, but optimal reward design depends on referral value, reward cost, and whether rewards alter existing behavior.
For your marketing
Possible founder application
Test double-sided versus single-sided incentives and evaluate incremental referred customers rather than raw invitations.
Reported result
What the study found
Referral rewards can be profitable, but optimal reward design depends on referral value, reward cost, and whether rewards alter existing behavior.
Research question
What the authors investigated
How does the study’s stated design explain its reported outcome in this setting?
Design
Analytical model informed by customer referral economics
Sample and setting
Service/customer-referral setting; abstract-only
Scope and transfer
Limitations to keep in view
Abstract/page does not establish broad external validity.
Research sources
abstract_only