Loyalty programs are offered by retailers and other corporations as a way to attract and retain customers.
Loyalty programs offer rewards, discounts or other special incentives and are designed to reward customers for repeat purchases.
Loyalty programs benefit companies not only by increasing customer loyalty, but also by providing important information about how customers spend money and what products or types of offers are most attractive.
While companies like Starbucks make extensive use of loyalty programs, some retailers like Costco and Amazon rely on yearly memberships instead.