The Evaluation Of An Incentive Program Used to Recruit Health Club Memberships Through Friend Referrals

Abstract

This study evaluated an incentive program that had been used to recruit memberships in a health club. The program was evaluated by withdrawing the incentive system after a baseline incentive condition. A multiple-baseline design across two groups of employees was used to compare the relative number of referrals made per person in the incentive conditions to the number made in the no-incentive conditions. In the no-incentive condition for the two groups involved, the mean number of referrals per new member dropped significantly from the baseline incentive condition. Referral rates returned to baseline levels when the incentive condition was reinstated. The cost versus revenues attributable to the incentive program indicated that the cost-benefit ratio warranted continuation of the program.