A loyalty program is a structured marketing effort that rewards and encourages loyal purchasing behavior with the aim of increasing a company's market share and profits. The goal is to retain customers and motivate them to spend money more frequently.
Participating customers typically receive a loyalty card. Other terms for this include customer card, points card, or club card: a plastic card or pass, usually the size of a credit card. Often, a rewards system is used, either electronically or with stamps affixed to a loyalty card, where points can be earned in proportion to the amount spent. These cards are sometimes free, and in other cases, there may be a fee involved. Points earned can be exchanged for money or, with or without additional payment, a product.
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