Ten years ago, this month, the Boston Consulting Group released a seminal piece on the economics of loyalty, providing a crucial framework for understanding how loyalty programs can be profitable.
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Pioneers get the arrows, settlers get the gold. The DNVB sells their products through their own online cart. Historically, these brands have a price advantage over traditional retailers and competitors – to include Amazon. They accomplish this by cutting out the middleman and marketing directly to consumers. The DNVB must achieve five criteria:
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This has been another year of broken records for this annual sales cycle. Black Friday was the first day in history to achieve $2 billion or more in mobile sales. Cyber Monday generated over $7.9 billion in North American sales. But while sales volume increases, brands are left scrambling to get in on the fun. Often, to their detriment. Here, we study the delicate balance of brand equity and incentive-driven revenue. Idealism aside, there is a balance that can be achieved.
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