Cited by 171Customer Service Quality and LoyaltyCustomer churn and segmentationDigital Marketing and Social Media

Growing Existing Customers’ Revenue Streams through Customer Referral Programs

Open access
Garnefeld, Ina, Eggert, Andreas, Helm, Sabrina V., Tax, Stephen S.·2013·Journal of Marketing

Abstract

Customer referral programs are an effective means of customer acquisition. By assessing a large-scale customer data set from a global cellular telecommunications provider, the authors show that participation in a referral program also increases existing customers’ loyalty. In a field experiment, recommenders’ defection rates fell from 19% to 7% within a year, and their average monthly revenue grew by 11.4% compared with a matched control group. A negative interaction between referral program participation and customer tenure reveals that the loyalty effect of voicing a recommendation is particularly pronounced for newer customer–firm relationships. A laboratory experiment further demonstrates that referral programs with larger rewards strengthen attitudinal and behavioral loyalty, whereas smaller rewards affect only the behavioral dimension. This article contributes to our theoretical understanding of the roles played by the commitment–consistency principle and positive reinforcement theory as mechanisms underlying the effectiveness of customer referral programs.

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Registry

Crossref · 10.1509/jm.11.0423

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98 of 98 references verified0 citation errors · 0 not checkable

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Authors
Garnefeld, I., Eggert, A., Helm, S. V., & Tax, S. S.
Affiliations
  • University of Wuppertal (DE)
  • Paderborn University (DE)
  • University of Arizona (US)
  • University of Victoria (CA)
Corresponding author
  • Garnefeld, Ina
  • Eggert, Andreas
  • Helm, Sabrina V.
  • Tax, Stephen S.
Venue
Journal of Marketing
Published
2013-07
Volume
77
Issue
4
Pages
17-32
ISSN
  • 0022-2429 (ISSN-L)
  • 1547-7185
OpenAlex
W2066286850
Cited by
171
References
102
Citations by year
2026: 12 · 2025: 11 · 2024: 14 · 2023: 6 · 2022: 17 · 2021: 19 · 2020: 13 · 2019: 18 · 2018: 13 · 2017: 15 · 2016: 15 · 2015: 12 · 2014: 4 · 2013: 2
FWCI
22.57
Type
journal article
Language
en
Open access
Locations
  • Journal of Marketing (publishedVersion)
  • Newcastle University ePrints (Newcastle Univesity)
Topics
  • Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Customer Service Quality and Loyalty
  • Social Sciences › Business, Management and Accounting › Marketing › Customer churn and segmentation
  • Social Sciences › Sociology and Political Science › Digital Marketing and Social Media
Keywords
customer referral programs, customer loyalty, customer acquisition, customer tenure, referral rewards, customer churn, cellular telecommunications, income sources

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