how a loyalty program works
loyalty program incentives vary typical incentives include to join a loyalty program also known as a rewards program or points program customers typically register their personal information with the company and are given a unique identifier such as a numerical id or membership card they use that identifier when making a purchase purpose of a loyalty programloyalty programs provide two key functions they reward customers for their repeated patronage and they provide the issuing company with a wealth of consumer information and data while companies can evaluate anonymous purchases the use of a loyalty program offers additional details on the type of products that may be purchased together and whether certain incentives are more effective than others loyalty programs particularly apply to high volume businesses that thrive on return customers and since it s more expensive to acquire a new customer than to sell to an existing one the prospect of creating a loyal following is fundamental to adding value 