The tiered loyalty program and consumer purchase behavior = 客户分层营销与消费者购买行为

Abstract

 We investigate the impact of transitioning from a non-tiered loyalty program to a tiered loyalty program on customer purchase behavior. Employing a Difference-in-Differences approach, our study reveals that this shift leads to an average increase of approximately 46 RMB in the total monthly purchase amount per customer, indicating the cultivation of their purchasing habits rather than attracting cherry pickers. Notably, this increase is primarily driven by the highest-level members, while the effectiveness of the tiered loyalty program is relatively less pronounced for middle-level members. Enterprises can utilize our findings to conduct cost-benefit analyses of loyalty programs and formulate more effective marketing strategies. Furthermore, our findings highlight the tiered system’s effectiveness in driving customer engagement and fostering loyalty, particularly for high-value customers who are influenced by the perceived status associated with higher tiers. Recognizing the diverse needs and preferences of different customer segments, enterprises should optimize their loyalty program designs and tailor marketing efforts accordingly.