Effective loyalty programs can boost sales and profits. The cost of good programs can be unexpectedly low—and the returns surprisingly high. But most programs do only an adequate job; few outperform. The best of them invest in the incentives that increase incremental share while maximizing the “loyalty margin.”
When competing in a new class of drugs, is it better to be the first to market or the best in class? BCG’s Ulrik Schulze and Michael Ringel explore this topic in the June 2013 issue of Nature Reviews Drug Discovery.