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Understanding the Impact of Loyalty Programs on Customer Behavior

Mike Gunn
February 7, 2023


Customer loyalty programs are an important tool for businesses to reward their customers for their loyalty and build long-term relationships with them. This type of program is designed to encourage customers to make repeat purchases, increase sales and ultimately increase profits. By understanding the impact of loyalty programs on customer behavior, businesses can create effective loyalty programs and better understand their customers.

Cashback and Referral Programs

One of the most popular loyalty program strategies is offering cash back or referral programs. Cash back programs allow customers to receive a percentage of their purchase back in the form of a cash reward. This not only encourages customers to make repeat purchases but also serves as an incentive for customers to recommend the product or service to their friends and family.

Referral programs also reward customers for referring new customers to the business. This type of program is often used in combination with cash back programs, and it can be a great way to increase the visibility of your business and attract new customers.

Revisit Loyalty Programs

Revisit loyalty programs are designed to reward customers for returning to the business on a regular basis. This type of program typically offers rewards for frequent purchases, such as discounts or free products. Revisit loyalty programs are a great way to encourage customers to return to the business and make more purchases.

Directly Reaching out to Customers

In addition to loyalty programs, businesses should also consider directly reaching out to their customers. This can be done through email or social media campaigns, as well as direct mail campaigns. By directly engaging with customers, businesses can create relationships and strengthen customer loyalty.

Loyalty Cards

Loyalty cards are a great way to reward customers for their loyalty. These cards typically offer rewards such as discounts, free items, or points for every purchase. Loyalty cards make it easy for customers to keep track of their rewards and make sure they are taking advantage of them.


Understanding the impact of loyalty programs on customer behavior is essential for businesses to effectively reward their customers and build long-term relationships with them. By offering cash back, referral, and revisit programs, as well as directly engaging with customers and offering loyalty cards, businesses can create effective loyalty programs and better understand their customers.

About btwn

btwn is a new app that offers cash back and loyalty cards, leveraging organic word-of-mouth marketing. As the official partner of VISA, MasterCard, and American Express, btwn tracks customer activities to enhance visits and referrals. Only a 10% commission is charged on earnings through btwn, ensuring that customers receive cash rewards, referral bonuses, and a full package of promotions.

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