Which types of loyalty programs exist?

There are a number of different options when you choose what type of loyalty program to use. Will you go for the widely known point system or will you incorporate the brick & mortar stores classic punch cards into your webshop? 5 notable options will be outlined here including their pros and cons. https://selfstartr.com/customer-loyalty-programs/

Points Program

First of all the points based program. This program is probably best known among consumers and managers alike. The concept is simple: for certain steps the customer takes he or she will be rewarded with points. These points can also be gifted on special occasions such as the customer birthday. Afterwards these points can then be traded for discounts or other rewards. When using a points program keep it simple, 1$ = 1 point for example. This will minimize confusion with your customer and gives a clear image of what they receive when they participate in your program. http://www.theloyaltybox.com/blog/step1-design-planning/6-types-of-loyalty-programs-drive-success/


  • Flexible: A points program is highly flexible, providing a clear cost/value assessment for the operator and providing him with tools to easily give (simple) rewards that add value.
  • Easy: The points program is probably one of the easier programs to use. It allows the customer to understand the value and rules with one quick look.
  • Discount: the program does not give direct discounts, so you are not competing on a price level with your competitors.


  • Instant Gratification: A points program cannot provide instant gratification. Because the system revolves around saving points it will take a while before the consumer will get the reward.
  • Frequent but short-term: The points program is best used for webshops where customers buy in frequent short bursts. They will receive the most value. Other businesses where shoppers buy less frequently are better of using a different program.
  • Reminder: You may need to frequently remind customers of their status in the program.http://www.loyaltymarketing.com/simpliblog/bid/393092/The-Four-Main-Types-of-Loyalty-Marketing-Programs
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