Tamaddoni, A., Stakhovych, S., & Ewing, M. (2017). The impact of personalised incentives on the profitability of customer retention campaigns. Journal of Marketing Management, 33(5/6), 327–347. https://doi.org/10.1080/0267257X.2017.1295094
Summary: This article contends that while there have been many studies made on churn (p. 328), the term used to describe loss or turnover of customers, there has been very little research on strategies to reduce churn. The authors contend that offering incentives may help companies to retain customers but that such incentives must be individualized based on customer buying habits to be effective. In other words, not all customers are equally worth retaining.
Interesting Quote: Tamaddoni and Ewing (2017) point out an often overlooked fact: “It is plausible to have a customer who is likely to churn and who is also not profitable” (p. 332).
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