What is a Customer Loyalty Program?

A customer loyalty program is a rewards program for customers who make frequent purchases. Loyalty programs offer repeat customers incentives to keep coming back and buying from your company or brand.

Probably one of the most well-known customer loyalty programs is Starbucks’ Rewards. You sign up at the Green Level, and after earning 300 or more stars, you become a Gold Card member. Gold Card members receive a personalized gold card, get monthly double-star days, and a star reward every 125 stars.

Starbucks Rewards

This rewards program works really well for the average customer. It rewards you for doing what we all know you do all the time – go to Starbucks. Plus, it’s super easy to get started. All you have to do is get a Starbucks gift card, and create an account using that card number.

Another well-known example of a customer loyalty program is Amazon Prime. For only $99 per year, Prime customers get free 2 day shipping and unlimited deliveries with no minimum order size. Plus, Prime customers get exclusive access to streamed entertainment.

Amazon Prime Rewards

This rewards program is also simple to join. All you have to do is sign up for a free 30 day trial. If you don’t like it, you can cancel any time.

The important thing to remember about customer loyalty programs is that any rewards or incentives need to be enough to encourage frequency. It’s possible to take a loss when offering incentives to customers, so be sure to consider the lifetime value of the customer and what a reward should really be worth.

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