what are loyalty programs

A loyalty program is a marketing strategy designed to encourage customers to continue to shop at or use the services of a business associated with the program. It typically involves the operator of a particular program setting up an account for a customer and issuing a loyalty card, which may provide the customer with discounts on current purchases or an allotment of points that they can use for future purchases. Loyalty programs are offered by retailers and other businesses to attract and retain customers by providing rewards, discounts, and other special incentives. These programs benefit companies by developing customer loyalty and providing crucial information on customer spending and preferences. More than 90% of companies have some type of customer loyalty program, and they have proven to be effective tactics for increasing revenue and inspiring customer loyalty