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.
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:
