What impact do loyalty customers have for retailers?

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

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