Think about yourself as a customer. Do you collect airline miles? Do you get bonus points for refunds by using one credit card instead of another? What about store programs? Do you have a bonus card for a particular grocery store or pharmacy? I know some people who carry more of those store key-chain cards on their key rings than keys! Maybe you’re one of them. All of these examples are testaments to how well these programs work.

As the consumer, you benefit from these loyalty programs by getting discounts and special perks. These programs help to shape your future buying habits.

Every time you find yourself selecting one store or company over another because of your desire to build up rewards points, you can remind yourself that these loyalty programs work.

A big caveat to these programs working successfully is that loyalty programs must be easy to understand and use – for your customers AND your staff.

All customers are not created equal and that very notion is reason enough to establish a loyalty program. You want to encourage those who spend more with you to…well spend even more. The best part is that they’re very likely going to do just that.