Define loyalty program

It may seem counterintuitive to charge customers an initial fee to belong to a loyalty program. After all, the whole point is to win them over with rewards.

However, charging a fee up front can be beneficial for both your business and your customers. Depending upon your business, charging a one-time or annual fee lets customers bypass common purchase barriers. For example, Costco may charge an annual membership fee, but their customers enjoy a return policy that is one of the most lenient and generous of any wholesaler or retailer out there.

Related Term. Search terms by letter. Delivered straight to your inbox. Thanks for submitting! Read More. Loyalty Program. Customers have several options to choose form when it comes to buying products or using services. In order to stop customers from switching to a competition brand, companies adopt various methods to retain customers.

One such strategy of customer retention is through a customer loyalty program. These days companies ensure that they have a strong customer loyalty program in place for its customers. Since customer retention is an integral part of business today, it is the responsibility of the marketing teams to make sure they attract customers with such benefits. A loyalty program can be seen as a tool to not only keep a repeat customer happy, but it is also a mechanism to improve brand equity.

All these things make a brand loyalty program important for any contemporary business. There are several ways in which companies can create a loyalty program to engage their customers. Loyalty programs can offer discounts, patronage rewards, redeemable points, cashback, offer free goodies through memberships etc. Different types of loyalty programs for customer retention and increasing business are as mentioned below:. Priya Indian. Neerja Indian. Zira US English.

Oliver British. Wendy British. Fred US English. Tessa South African. How to say loyalty program in sign language? Numerology Chaldean Numerology The numerical value of loyalty program in Chaldean Numerology is: 2 Pythagorean Numerology The numerical value of loyalty program in Pythagorean Numerology is: 9. Examples of loyalty program in a Sentence Rick Garlick : While passengers often choose airlines based on price, convenient scheduling, or loyalty program membership, about one-in-five choose airlines based on specific things they like about the brand such as customer service, in-flight entertainment, or more comfortable seating.

Select another language:. Please enter your email address: Subscribe. Discuss these loyalty program definitions with the community: 0 Comments. Notify me of new comments via email. Cancel Report. Create a new account. If you add funds via the app onto your digital rewards card, you'll "earn Stars twice as fast," Starbucks says. Loyalty programs aren't the only way to win customers' allegiance.

Even though they carry an out-of-pocket cost, many shoppers happily pay the annual fees to access the variety of products, free shipping in Amazon's case , and other perks and privileges offered by the two retailers.

And for those who take advantage of all the available services included in a membership, the benefits can often outweigh the costs. Company Profiles. Rewards Cards. Cash-Back Cards. How To Start A Business. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile.

Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights.

Measure content performance. Develop and improve products.