Business in Vancouver spoke to David Hardisty, an assistant professor of marketing and behavioural science at UBC’s Sauder School of Business, about the benefits of rewards programs.
“It’s especially good because those long-term repeat customers are much more valuable to companies,” Hardisty said. “Trying to bring in a brand-new customer is really difficult and expensive – the cost of acquisition of a new customer is often pretty high, whereas if you can just retain an existing customer for a lower cost, that’s also much more effective.”
