A loyalty programme is an organized system of benefits intended to recognize and encourage an ongoing customer relationship.
How it works in retail
Benefits may include points, member pricing, services or access. Programme rules determine how customers earn, redeem and retain those benefits.
A retail example
A boutique gives enrolled customers credit toward future purchases after eligible spending reaches a stated threshold.
What to keep in mind
Enrolment is not the same as active participation. Measure repeat behaviour and the cost of benefits, and state expiry and redemption terms clearly.
Examples are illustrative. Terminology and measurement conventions can vary by business and market.