Faculty of Economics and Business Administration Publications Database

Why Customer Referrals Can Drive Stunning Profits

Schmitt, Philipp
van den Bulte, Christophe
Volume: 30
Month: June
ISSN-Print: 0017-8012
Link External Source: Online Version
Year: 2011
Abstract: A study of 10,000 accounts in a large German bank showed that customers obtained through referrals are both more loyal and more valuable than other customers, making referral programs well worth the cost. The effect is strongest among young people.