How does the loyalty program work?

[bitheerani93]

In practice, a loyalty program operates as an exchange: the customer keeps buying and, in return, receives benefits. This can happen through accumulative points, cashback, progressive discounts or access to exclusive advantages.

The objective is simple: to encourage recurrence and strengthen the relationship with those who already trust your brand.

But it is important to reflect on the level of reward. Loyalty country email list be valued in those customers who generate ongoing value for the company, since retaining them costs less than attracting new ones.

For new customers, the reward should be strategic, avoiding immediate benefits that only attract opportunistic consumers. The ideal is to encourage them to advance their relationship with the brand.

In the next topics, we’ll explore in detail how to balance these rewards to maximize retention and ensure a truly effective program.