The best loyalty programmes offer genuine value to
customers while providing the retailer with some valuable data on customer behaviour
. While loyalty programmes are by no means the only way to develop and
encourage loyalty with customers, they do offer a good way to retain customers
and significantly increase the likelihood of further purchase and interaction
with the brand.

The aim of loyalty programmes is simple enough: reward customers for making
regular purchases, and drive changes in consumer behaviour – tempting them to
spend more, more often. A good loyalty programme can help to prevent customers
from switching to competitors and provide valuable insights into consumer
preferences. This might be through tailored offers or vouchers as a reward, or
by using their loyalty to improve their shopping experience through
personalization. To be valuable to customers however, the rewards need to be
desirable, achievable and understandable.
Personalization
allows businesses to connect with their customers on a more relevant level
which gives a customer every reason to return next time

Ref: www.Salescycle.com