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Loyalty Program

Long flexible markerting strategy that helps you retain customers

Definition of 'Loyalty Program'


A rewards program offered by a company to customers who frequently make purchases.

A loyalty program may give a customer advanced access to new products, special sales coupons or free merchandise. Customers typically register their personal information with the company and are given a unique identifier, such as a numerical ID or membership card, and use that identifier when making a purchase.

Loyalty programs provide two key functions: they give a customers rewards for brand loyalty and they provide the issuing company with a wealth of consumer information.

While companies can evaluate anonymous purchases, the use of a loyalty program gives additional information about the type of products that may be purchased together, and whether certain coupons are more effective than others.

Types of Loyalty Program

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How Loyalty Program System Can Help Your Business?

Loyalty marketing helps you retain customers – which help you increase profits.

The typical corporation loses almost half its customer base every five years. Companies that understand the impact of this customer attrition and take steps to stem losses can realize dramatic profit gains.

'Loyalty Program is a long flexible markerting strategy that helps companies identify, retain and grow best customers by communicating to them and recognizing and rewarding them based on their purchase activity.'