A loyalty or rewards scheme is a marketing effort that encourage buying behaviour through the provision of discounts on the current purchase, or an allotment of points or credits that can be used for discounts or as currency in future purchases. These programmes are offered by a company or a group of companies to customers who frequently make purchases with the purpose of building and maintaining customer loyalty.
A loyalty program may give a customer advanced access to new products, special sales coupons or free merchandise. Customers typically register their personal information with the company and are given a unique identifier, such as a numerical ID or membership card, and use that identifier when making a purchase 1.
- Investopedia http://www.investopedia.com/terms/l/loyalty-program.asp ↩