Loyalty program
customer loyalty program or loyalty card
A loyalty program or rewards program is a marketing strategy designed to encourage customers to continue to shop at or use the services of one or more businesses associated with the program.
Single-company vs. coalition programs
Loyalty programs may be either:
Single-brand programs, which may be for all stores owned by a company, such as Target, or branded stores which may be corporate-owned and franchised to independent business owners, such as McDonalds.
Single-corporation programs, such as the joint Gap Inc. program, work at the stores and digital channels of Gap, Banana Republic, Old Navy, and Athleta, which are all owned by Gap Inc.
Coalition loyalty programs provide benefits to customers of multiple otherwise-unrelated businesses. Examples include Rakuten Rewards which, in the U.S. offers cashback at more than 3,500 stores and Air Miles which awards points for purchases from multiple merchants in each market it serves (Canada, The Netherlands, Bahrain, Qatar, and the UAE).
Shopping center programs may also be based on a single or chain of shopping centers, such as the Tanger Outlets loyalty programs that can be used at merchants located at its outlet malls.
Downtown Olympia, Washington, launched a coalition loyalty program in 2021 for merchants in its downtown shopping district.
In 2020, McKinsey spoke of loyalty program "ecosystems".
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