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Loyalty programs offer customers incentives — such as discounted prices, free products, or advanced access to items — for purchasing products or services from a particular brand.
To manage a loyalty program (otherwise known as a rewards program), some businesses provide customers with a simple punch card, which they can use to keep track of purchases.
In other cases, businesses might track rewards via a digital system.
Still other programs might require customers to complete interactive tasks, such as sharing photos of products on social media or sending an offer to a friend.
When a customer joins a loyalty program, they typically provide the business with their personal information, such as their name, address, and phone number.
After purchasing certain kinds or amounts of products or services, the customer receives benefits in the form of free products, discounts, credit toward future purchases, early access to items, or special services. The consumer is rewarded with extra benefits, while the business strengthens customer loyalty and gains the consumer’s contact information, which they can use for future marketing efforts.
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