Models

Customer Loyalty with Incentive

This model explores an incentive to increase customer loyalty in a market such as the cell phone market. Each year, each of our customers remains with us with a given probability and each of the competitors' customers switches to us with another given probability. The question is whether it is worth our while to incentivize their customers to switch to us. The model assumes a one-time monetary incentive when they make such a switch.


magnifierarrow-right
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram