Card loyalty programs reward purchases made by cardholders. These rewards can take various forms, such as purchase discounts, interest-free credit offers, or points systems. The pioneers of this concept were oil companies and their gas stations in the 1960s, as well as American airlines with their frequent flyer programs.<\/p>\n\n\n\n
A card loyalty program can be as simple as a non-computerized card-based system for tracking purchases. While generally free, membership in these programs may sometimes require a fee. Beyond the loyalty benefits associated with rewards, these programs also allow businesses to better understand their customers through information collected during registration and checkout. This data can then be used to personalize offers at the point of sale (such as coupons) or through direct marketing campaigns via mail or email.<\/p>\n\n\n\n
In the retail sector, loyalty programs are also used to encourage the purchase of private label products and, occasionally, promotional brands. In the latter case, agreements are often made between the brand and the retailer. Although often described as relationship programs, these card-based loyalty programs are generally based on a transactional approach.<\/p>\n\n\n\n
There are various types of card-based loyalty programs, each with its own specific characteristics and objectives. The results of a 2016 study on these programs sparked a debate about their effectiveness and profitability in the retail sector. Some criticize them for attracting already loyal customers or creating competition between different retailer programs and consumers’ existing cards. Despite these criticisms, acquiring customer knowledge can have a positive impact on sales through other channels.<\/p>\n\n\n\n
In conclusion, the<\/p>\n","protected":false},"excerpt":{"rendered":"
Card loyalty programs reward purchases made by cardholders. These rewards can take various forms, such as purchase discounts, interest-free credit offers, or points systems. The pioneers of this concept were oil companies and their gas stations in the 1960s, as well as American airlines with their frequent flyer programs. A card loyalty program can be […]<\/p>\n","protected":false},"author":1,"featured_media":0,"menu_order":0,"template":"","meta":{"wds_primary_glossary-categories":0,"footnotes":""},"glossary-categories":[82],"glossary-tags":[],"class_list":["post-52356","glossary","type-glossary","status-publish","hentry","glossary-categories-crm-customer-relationship"],"_links":{"self":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/glossary\/52356","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/users\/1"}],"version-history":[{"count":0,"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/glossary\/52356\/revisions"}],"wp:attachment":[{"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/media?parent=52356"}],"wp:term":[{"taxonomy":"glossary-categories","embeddable":true,"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/glossary-categories?post=52356"},{"taxonomy":"glossary-tags","embeddable":true,"href":"https:\/\/digitionary.com\/en\/wp-json\/wp\/v2\/glossary-tags?post=52356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}