What is a Loyalty Program?

So what is a loyalty program? This term is often mis-used as a container term for all programs that are used to get the customer to either do a purchase, repeat purchases, repeat transactions, or become more brand-aware.

As you can see, not all of these can even be remotely related to the term "Loyalty". Is a customer that does a purchase, or even repeated purchases, loyal?

Well, if the term "Loyalty Program" is a container term, what categories can be distinguished? I consider three categories of loyalty programs:

• Collect / Coupon Programs (short-term and long term)
• Membership programs
• Loyalty Programs

What are loyalty program characteristics?

 

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