Market research has proven that gaining new customers is a far more costly activity than maintaining current customers. Hence, entrepreneurs put a lot of emphasis upon relationships with customers. Loyalty programs have recently become one of the most popular methods for maintaining customers.

What are the reasons for their growing appeal? First and foremost, they are very effective. A well-constructed loyalty program can result in considerable improvement in customer attachment.

The idea behind loyalty programs is as simple as can be. The customer purchases products or services and receives a bonus: it may be a prize, a gift or a discount. Subsequent purchases and granted discounts attach the customer to the company and, more importantly, increase the brand awareness. The benefits for the enterprise are obvious: regular profits and the indirect winning of new customers.

Loyalty programs are based on loyalty cards which allow the company to identify the customers and entitle them to discounts and bonuses. A loyalty card may be an electronic card or a standard card with all the necessary information printed on it – the choice depends on the company’s individual requirements and available funds.

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