Loyalty Program
Retailers and other businesses sponsor loyalty programs that offer rewards, discounts, and other unique incentives to recruit and keep customers. They're made to encourage repeat business by rewarding customers for sticking with a retailer or brand (hence the name). The larger the benefits, the more frequently a customer patronizes the merchant—and the more they spend. Loyalty programs are significant for high-volume businesses that rely on repeat business. Because it costs more to recruit a new consumer than it does to sell to a current one, the prospect of building a loyal following is critical to adding value. These programs can foster true brand loyalty when interwoven into the customer's daily routine.
