What is Loyalty Programs? Definition and Meaning - Ikajo Glossary


Loyalty Programs

Loyalty Program is a systematical marketing approach that is aimed to make the buyers continue buying goods or use the services of companies connected with each program. Various organizations design LP so the clients wanted to use their services more often, and the customers use it because of the best deals provided by such program. LPs involve the biggest part of commerce’s types; each type has variable features and rewards systems. The clients are advised about the discounts, and various coupons as well as points in exchange for buying goods.

In banking or entertainment, the loyalty card (which the organization usually gives to the participant of LP) looks like a common credit card and has a barcode to define the client. The major aim behind LP is to retain the consumers by rewarding them for their loyalty to a particular store/bank/company which is presented in a form of regular purchases in that place.

Due to such program, the consumer’s personal data is recorded in the organization’s database that is why the company/store/bank is able to track buying habits and first choices of the holder. As a result, the data is used by the companies to monitor the first choices and offer the goods/services that the customer wants. For example, if the holder of a loyalty card buys a laptop, for sure, he/she will be advised some accessories to go with the item purchased.

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