What are loyalty programs?

Loyalty programs are initiated by two main objectives: obtaining information about customers' customers and actively cultivate loyalty among customers to ensure that they continue to patronize business. While some companies reverse these priorities, the above hierarchy applies to most. Others offer a discount as soon as certain criteria have been met. For example, it could entitle the customer for a 20% discount on a single purchase as soon as he spent $ 200 (USD) in business. Others offer points that can then be redeemed for products that may or may not be directly related to the company.

Loyalty cards are the most common form of such programs found around the world. In United States, nearly 75% of consumers have at least one card, with more than a third of all shoppers with two or more. The main chains of supermarkets have almost all loyalty kalips, also known as reward cards or benefits. These supermarket programs usually work by offering discounts on certain products, usually marked throughout the store, to those who have a card. In exchange for this discount, customers provide trade access to detailed income of their shopping habits in the store, allowing business to meet their needs and build products and discounting to maintain their most profitable customers. In these programs, the customer deploys points by flying to the airline and can then earn cash in exchange for tickets, upgrades or even third -party benefits. In the past, many businesses outside Airline combined their own loyalty programms with airlines programs that offer frequent miles of leaflets in exchange for everything from telephone use to gasoline. Businesses capitalized on this in designing their programs and often offering benefits that cost little but carry with them the presumed prestige, such as access to fasterin a moving line or special parking spaces.

The success of loyalty programs ultimately depends on how well the business uses the data it collects to further improve its policies. Many businesses will find a small profit in their use, while others attribute a large part of their financial success to the well -made use of these programs.