Is Your Promotion Killing Your Most Faithful Customers?

LinkedIn, June 6, 2016

In a post on LinkedIn, Vice President Kristina Shampanier of Analysis Group summarizes a Marketing Science article advocating for more individualized approaches to successfully maintaining customer-company relationships and showing how combining experimental research with hard-core statistics and insights from psychology can provide practitioners insights into their policy and marketing approaches. Commenting on “Enduring Effects of Goal Achievement and Failure Within Customer Loyalty Programs: A Large-Scale Field Experiment,” by Yanwen Wang, Michael Lewis, Cynthia Cryder, and Jim Sprigg, Dr. Shampanier describes the authors' collaboration with InterContinental® Hotels Group to conduct a “field experiment,” that is, a study with real-world intervention and outcomes where participants are not aware that they are in a study.  In order to improve IHG's ability to target different customer groups more effectively, the research team investigated different customers' short- and long-term reactions to a promotion relative to a control group, and in particular examined the incremental effects of the promotions on customers of different loyalty statuses. According to Dr. Shampanier, the results help fill a gap in the literature on the effects of promotions on different customer types, while also demonstrating the potential for tapping into the power of collaborations between academics and corporate management.

Dr. Shampanier's commentary is published in her role as a Marketing Sciences Ambassador, an initiative of the journal Marketing Science to promote increasing awareness of leading-edge academic research among practitioners.

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Authors

Shampanier K