Harvard Business Review

FEBRUARY 13, 2013

When companies like American Express offer discounts, they often justify the spend by referring to the Customer Lifetime Value (CLV). The company is better off offering a discount today, because that will likely increase the customer's loyalty, and loyalty increases the CLV. The Future of Advertising An HBR Insight Center.

Advertising 8

Advertising Discount Media Customer Loyalty 8

Harvard Business Review

AUGUST 9, 2012

Traditional marketing — including advertising, public relations, branding and corporate communications — is dead. Help them build social capital. Traditional marketing often tries to encourage customer advocacy with cash rewards, discounts or other untoward inducements. But they are. The evidence is clear.

Marketing 22

Marketing Social Capital Media Influence 22

Harvard Business Review

MAY 3, 2013

Researchers conducted an experiment on getting customers to refer business to the firm, offering three incentives: $10 to refer; an opportunity to pass along a $10 discount to the friend (no reward for the referrer); and a mix of the two ($5 discount for the friend and $5 for the referrer). Social Rewards Are More Powerful.

Guidelines 8

Guidelines Banking Discount Open-book 8