2. Customer Loyalty Programs

Customer loyalty programs are strategies businesses use to encourage repeat purchases from customers. These programs reward customers for their continued patronage, often through points, discounts, or exclusive perks. For example, a coffee shop might offer a free drink after a certain number of purchases. The goal is to build a lasting relationship, increasing customer satisfaction and encouraging them to choose that brand over competitors. By fostering loyalty, businesses can enhance customer retention, which is often more cost-effective than acquiring new customers.