Loyalty programs are a type of complex promotion as they involve a spend-get strategy. A loyalty program offers discounts or other incentives as a reward for a customer’s repeat business/loyalty. Typically, the more a consumer spends, the greater the reward.

Retailers invest in loyalty programs because they:

1. Retain existing customers 
2. Increase customer lifetime value
3. Improve customer experience
4. Increase sales 
5. Build brand affinity