Explain any four (4) types of customer loyalty programs. Write your answer in 25– 50 words for each.
Explain any four (4) types of customer loyalty programs. Write your answer in 25– 50 words for each.
Answer:
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Points-Based Programs:
- Customers earn points for every purchase, which can be redeemed for discounts, free products, or other rewards. This program encourages frequent purchases, as each transaction contributes to earning more points.
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Tiered Programs:
- These programs offer escalating benefits based on a customer’s loyalty level. The more customers spend, the higher they climb through tiers, unlocking more exclusive rewards, such as premium discounts, early access to sales, or special gifts.
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Cashback Programs:
- Customers receive a percentage of their spending back as cash or store credit. This immediate reward can be especially attractive, as it directly reduces the cost of future purchases.
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Subscription Programs:
- Customers pay a recurring fee to access exclusive benefits, such as free shipping, special discounts, and premium customer service. These programs build a predictable revenue stream and foster long-term loyalty by providing regular, tangible value.