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Benefits Of Adopting Loyalty Program

Introduction

A loyalty program refers to a system which has structured rewards, ordinarily for an exchange of the desired behavior which aims at enhancing the loyalty of customers. Loyalty program utilizes the principle of commitment, reciprocity as well as loss aversion with an aim of increasing the probability of customer loyalty.

Modern loyalty programs are tied to specific brands or even a group of brands. Some common rewards in the loyalty programs include points which a customer can redeem for both products and services and cash back rewards which are accumulated and paid at regular intervals mostly on annual basis.…