This paper analyzes firms' strategies that aim at retaining customers and examines
consumers' characteristics that make them ideal targets for companies' loyalty programs. Our
contribution is both theoretical and empirical. On the theoretical side, we develop a formal
economic model to study the incentives of firms to offer personalized pricing plans, when
consumers are at risk of leaving and are heterogeneous in service usage. On the empirical
side, relying on an original dataset of customers of one of the top mobile network operators …