MANAGEMENT

Detailed explanation-1: -What Is a Loyalty Program? Loyalty programs, sponsored by retailers and other businesses, offer rewards, discounts, and other special incentives as a way to attract and retain customers. They are designed to encourage repeat business, offering people a reward for store/brand loyalty (hence the name).

Detailed explanation-2: -Customer retention isn’t easy to create, but data shows that customers spend 67% more when they’re part of a customer loyalty program, so it’s worth the effort to get it right.

Detailed explanation-3: -A well-designed loyalty program allows companies to segment customers and discover profitable and unprofitable customers. It helps them in dropping off the customers who only buy the discounted lines and avoid premium range almost on a regular basis. These customer profiles can cost more money than they generate.

Detailed explanation-4: -A customer loyalty program is a system where a business offers rewards to its customers who make frequent purchases. From a business perspective, it’s a tactic used to encourage customers to repeatedly buy from your business.