When customers choose to redeem a reward, it significantly enhances purchase behavior before and after the redemption event, according to a new study compiled by researchers at the BI Norwegian Business School, the University of Groningen (The Netherlands), and Erasmus University Rotterdam.
The study titled, “Reward Redemption Effects in a Loyalty Program When Customers Choose How Much and When to Redeem,” shows that the redemption of loyalty program rewards has an important impact on members’ behavior. The study examined....