Practical Application: Types of Customer Loyalty Programs

Instructor: Scott Tuning

Scott has been a faculty member in higher education for over 10 years. He holds an MBA in Management, an MA in counseling, and an M.Div. in Academic Biblical Studies.

Customer loyalty is incredibly valuable because retaining a loyal customer is far more profitable than trying to cultivate a new one. This infographic provides a quick reference detailing the major program types and their characteristics.

Customer Loyalty Programs

Customer loyalty programs are becoming increasingly common. The popularity of these programs is due to reasons like:

  • They are a better investment of resources when it comes to capturing customers.
  • They provide a great deal of detailed, reliable data that a company can use to create a better customer experience.
  • They improve customers' perceptions of a company and entice them away from competitors without such programs.

All loyalty programs have the same aim of strengthening the existing customer base and enticing new customers to choose a company over its competitors. However, all programs are not created equal.

When choosing a model for a rewards program, a company must take into account factors such as:

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