With the digital evolution, the approach towards loyalty programs is transformed. Merchants are employing various methods like email marketing, social media, loyalty cards, etc. to get maximum participation of customers. So, they earn loyalty points in multiple ways.
A loyalty program is a structured and long-term marketing strategy that entices customers to make frequent repeat business with a certain product or service. Usually, the customer loyalty program offers unique benefits like discounts and other rewards. In fact, a 5% increase in customer loyalty is likely to increase profit per customer by 25% -100%. Hence, more and more retailers have adopted loyalty programs to retain more loyal customers.
However, over time the loyalty program has been changed. Companies have customized loyalty benefits to acquiring maximum privileges from various loyalty programs. In this blog, you will find a comprehensive overview of how loyalty programs have been evolved.
Evolution of loyalty programs
When the internet was less widespread, customers were not much aware of the extra privileges the company can offer. Also, there was not much competition in the market. So, previously customers made decisions to purchase a product based on how much value they received for their money. In that sense, loyalty programs accommodated to decrease the cost of discounting and primarily worked as a cheap currency. Besides, customers had to visit a physical store if they want to enjoy the benefits of rewards.
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