Like personal relationships, customer relationships are successful when both parties feel they are getting something beneficial from the relationship.
Customers give you their support when they buy from you, and in return, loyalty rewards like discounts and freebies affirm that they are receiving something in return.
Here are 8 benefits of a customer loyalty program:
Improves customer retention
Increases customer lifetime value and repeat business
Builds stronger customer relationships
Differentiates a brand from its competitors
Encourages word-of-mouth marketing
Shows customers appreciation
Drives customer satisfaction