What is a loyalty program?

A loyalty program is specifically designed to reward customers for their repeated purchases or engagement with a brand. This form of marketing strategy aims to foster a deeper relationship between the customer and the business by offering incentives that encourage ongoing patronage. Common rewards within these programs may include points that can be redeemed for discounts, exclusive products, or special offers, creating an ecosystem in which customers feel valued for their loyalty.

The other options describe different marketing strategies but do not capture the essence of a loyalty program. For instance, providing discounts for bulk purchases targets volume buying rather than ongoing loyalty; incentives for first-time buyers focus on acquiring new customers rather than retaining existing ones; and customer feedback campaigns are aimed at improving service or products based on consumer insights rather than rewarding purchasing behavior. Thus, the essence of a loyalty program lies in its continuous engagement with and reward system for customers who frequently shop or interact with a business.