What is a loyalty program

A loyalty program is a marketing strategy designed to encourage repeat purchases by rewarding customers for their continued engagement.

How do loyalty program work

Customers earn points, discounts, or other incentives for purchases or activities, which can be redeemed for rewards.

Types of loyalty programs:

• Points-based
• Cashback
• Paid/VIP loyalty

How to measure loyalty programs:

Repeat purchase rate, customer lifetime value, reward redemption rate

Why are loyalty programs important to marketers?

Loyalty programs foster retention, increase customer lifetime value, and differentiate brands in competitive markets.

Who needs to know about loyalty programs?

• CRM marketers
• Retention strategists
• Ecommerce managers

Use loyalty program in a sentence:

Our tiered loyalty program increased repeat purchase rates by 28%.