Loyalty program

A loyalty program is a marketing tool which motivates customers for repeated use of services or products of a company. It strengthens the relationship with the existing customers, but also gains trust of the future clients. The goal of a loyalty program is to suppress the instability of the buyers on the market and persuade them to stay with a specific product or service longer. A loyalty program helps to convert a temporary customer into a permanent one.

The essence of a loyalty program is rewarding customers for their loyalty. The consumer collects points within the loyalty program - for example for a purchase over a certain amount or for extending a contract. These points can be exchanged for various products, or for certain advantages.

Loyalty programs are divided into gift loyalty programs, where the clients gets for the points an advertising gift, discount loyalty programs through which the customer gets a discount for the purchase of goods, and rebate loyalty programs which allow a discount for purchasing goods of a certain value. Loyalty programs are an excellent opportunity for the distribution of advertising items with company logo or company motto.