Loyalty programs are strategies used by companies to maintain and increase their customer base by offering promotions and rewards. Personalizing these programs is key to enhancing customer engagement and generating higher revenue. Loyalty programs aim to retain customers, better understand them, and gain greater benefits by offering competitive advantages, reducing loyalty costs, generating referrals, and enabling more effective campaigns. There are different types of loyalty programs, such as point-based, multi-brand, and tiered reward programs.
