What is Loyalty Programs
Loyalty programs have been developed as a way of encouraging consumers to return to shops they often visit. The loyalty program may come in the form of a stamp card or plastic membership card with a unique identifier. The incentives offered by loyalty programs may include free products, early access to new offerings, or discounts.
A typical example is the stamp card offered by many coffee houses. They will often provide a free drink upon purchase of 9 coffees. Each time you buy a coffee, you earn one stamp on your card. Once you have nine stamps – you get your next one for free.