Customer Loyalty Program

Customer Loyalty Program is a reward program that is extended by a company to customers who regularly make purchases from a specific company. A loyalty program may give a customer advanced access to new products, special sales coupons or free merchandise. Customers most often register their personal information with the company and are provided a distinctive from of ID, such as a numerical ID or membership card, and use that ID at the time of the purchase transaction. E.g. (Air Miles, Scene, Sobeys) Loyalty programs deliver two essential purposes: they provide customers rewards for brand loyalty and they provide the distributing company with capital of consumer information. The use of a loyalty program gives additional information to companies  by  evaluating anonymous purchases about the type of products that are being purchased or can be purchased together, and if certain coupons are more effective than others. Popular programs are designed to motivate customers in a corporation's target market to revisit often, make repeated purchases, and turn away from competitors. In retailing, these programs in general reward loyal customers with discounts, special offers, rebates, points, or prizes. This program are also known as rewards program, customer retention, loyalty incentive program, frequent purchase program, frequent shoppers program, frequent buyer club, customer satisfaction program, rewards program, customer appreciation program. Loyalty punch cards (which can be paper or electronic) is a fairly low-cost marketing tool for assisting a retailer to recognize consistent customers and compensate them for their actual and estimated value to the company. A loyalty punch card does not require any personal information to be obtained by the customer for the company. This card is one that is either stamped or punched with every purchase made to accumulate for free merchandise or discount once the certain number of stamps or punches are obtain by customer. E.g. (Second Cup, McDonald’s McCafe)