A loyalty program is a type of reward program that is designed to encourage customers to keep coming back to a business or brand. The most common type of loyalty programs is a rewards program, which is a system in which customers are given points or credits for purchasing certain products or services. Other common types of loyalty programs include reward cards, frequent buyer programs, and reward points.
Why Loyalty Programs
Lot of times people feel that their brand does not need a loyalty programs. The quality of the product will be sufficient enough to drive the sales, so why make extra efforts. They are right, the quality of the product is the key to success, loyalty can only grow the topline. But it serves many more purposes. Here I list the four primary purposes.
2. Locking customer through cash cards
As evident from above, loyalty may not directly lead to repeat sales but the buzz or insights gained through the data acquired, can help the brands target their customers more effectively and drive sales. In the next article I will talk more about changing loyalty trends and how social media is playing a big role in the same.Siddharth Gupta, Founder at tagNpin Social Loyalty | Linkedin