A customer loyalty program is basically a program where a company will offer handsome benefits to entice customers to spend money and to keep coming back to spend their money. Some of the benefits that are offered by customer loyalty programs are offering customers the opportunity to receive points by spending a certain amount of money and being able to redeem these points at a later time to receive free or reduced merchandise.
Often customer loyalty programs are aimed at customers who come into your store looking for a bargain on a regular basis. These customers usually only spend the money in the store on sale products. They also return their items more frequently than other customers. A business will usually lose money as a result of this particular customer; therefore you will want to design a customer loyalty program that your best customers will find attractive.
The customer will not know that you have a customer loyalty program unless you make them aware of the program. The best way to educate them about the program is to ask them when they check out. Once they tell you that they are not the familiar with the program, simply give them the form to fill out to enrol in the program.
Grocery stores started the trend of customer loyalty programs. Some grocery stores issue the keychain card that will allow customers to receive special discounts just to entice them to spend their money. Most stores will still honour the customer receiving the discount even if the customer does not have the rewards card with them.
Generally when a customer makes a purchase and has received a saving or points on their reward cards, the business will inform them of the saving or the points. This is done to entice the customer to come back to spend more money. Salespersons play a major part in this role of informing the customer because most customers do not examine the receipt to see if they receive any saving or points.