Negative Fallout from Demoting Is Worse Than Positive Impact of Elevating Customers
The May 2009 issue of Journal of Marketing features a research study by Tillmann Wagner, Thorsten Hennig-Thurau, and Thomas Rudolph (“Does Customer Demotion Jeopardize Loyalty?”) that raises thoughtful questions about the wisdom of blindly pursuing hierarchical loyalty programs that elevate customer status according to preset criteria.
