Strategic. Financial. Brand differentiator...
The two main reasons why organisations instigate customer loyalty programmes are to substantially drive sales, and increase profitability.
Loyalty and reward programmes are used strategically to help business owners and brand managers engage with customers, ‘thank’ them for purchasing, keep them coming back, enhance the experience and way people think about a firm, product or service. And, for commoditised markets (Omni channel, coffee, consumer electronics, forecourt petrol etc), it becomes an important differentiator in a crowded market.
Effective and intuitive customer loyalty programmes with thoroughly engaged and responsive, happy customers, can help overcome price rises. They can also positively influence and change propensity and value of purchase.