Customer loyalty programs are programs that are offered by a company as a way to encourage current customers to become loyal, repeat customers.
Most often customer loyalty programs come in the form of rewards programs, offering free products or services, discounts, perks and even exclusive insider information and access to new products and services.
Often a company will have different levels to their rewards program – meaning the more you buy or spend the higher you get and the more rewards you reap. The goal of this is to incentivize repeat purchases and, hopefully, encourage customers to become brand advocates and to share their positive experiences with others.
Customer loyalty programs also use customer information, such as purchase history, to offer customers personalized offers and suggestions. This has been shown to improve customer experience, as well as increase sales.
Regardless of what is offered to consumers as a reward for being loyal, it doesn’t need to break the bank. Even a small thank you, like a free gift with purchase, can be enough to turn a one-time customer into a repeat buyer.
No matter how much is spent on customer loyalty, the return on this investment will always be worth your while.