Having a loyal customer base is a critical success factor for any firm or business. So, what can retailers do to bond their traditional customers, and keep them satisfied? What makes and keeps customers loyal? Are more intensive customer relationship management (CRM) initiatives like reward or affinity programs an efficient and suitable response, or will the economic change in the industry and the technical innovations force and allow for new and different approaches? This chapter identifies the drivers of customer loyalty and engagement, and considers how CRM systems in combination with a reward program can foster such loyalty. It also lists current trends in reward program design as well as digital solutions to loyalty erosion.
Werner Reinartz and Peter Linzbach
Peter Werner and Arno Riedl
In this chapter, we review selected evidence to demonstrate the value of experiments for policy design with a focus on environmental policy and tax policy. Experiments can substantially improve ex-ante predictions about the outcomes of policy interventions, for example, by serving as “testbeds” to compare alternative market rules and mechanisms under tightly controlled conditions. Experiments also yield important insights into systematic deviations from strict rationality and into the heterogeneity of preferences among decision-makers that can form the basis for the (re-) design of policies. Besides describing various experimental approaches applied in the areas of environmental policy and tax policy, we also discuss further directions for successful collaborations between experimental economists and political decision-makers.