What is a loyalty program?

A loyalty program is a benefits system offered by a retailer or service provider to customers who purchase their goods and services. Loyalty programs reward customers with a store discount, free product, or other offers in return for the customer's time and effort in becoming an active member of the organization. These programs are designed to encourage customer retention and ensure customer satisfaction. They also offer retailers ways to manage risk and reduce their costs by providing repeat supporters with additional discounts or deals. The growth of these programs has been rapid over the past few years as many companies have begun to see the benefits of offering them to loyal members of their business.