Work detail

Impact of free customer credits on purchases: Case of a major discount portal

Author: Bc. Theodor Petřík
Year: 2020 - summer
Leaders: Mgr. Kateřina Chadimová
Consultants:
Work type: Masters
Language: English
Pages: 68
Awards and prizes:
Link:
Abstract: The aim of this thesis is an empirical assessment of a customer loyalty program operated by a significant discount portal. A four-year sample comprised of purchases of 50,000 regularly active customers was examined using
the time series approach. Two methods were used to evaluate the impact
of the free customer credits on sales and the credits spent. Neither ARIMA
(auto-regressive integrated moving average model) nor a business forecasting
procedure Prophet discovered any significant evidence which would support
the alleged credit impact. Overall, the study revealed that the customer
loyalty program could be operated for years, burden the firm financially, yet
bring no meaningful, measurable results.

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Deloitte

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CRIF
McKinsey
Patria Finance