Loyalty program
`
`From Wikipedia, the free encyclopedia
`
`Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying
`ehavior — behavior which is potentially beneficial to the firm.[1]
`
`In marketing generally and in retailing more specifically, a loyalty
`card, rewards card, points card, advantage card, or club card is
`a plastic or paper card, visually similar to a credit card, debit card,
`or digital card that identifies the card holder as a member in a
`loyalty programm Loyalty cards are a system of the loyalty
`usiness model. In the United Kingdom it is typically called a
`loyalty card, in Canada a rewards card or a points card, and in the
`United States either a discount card, a club card or a rewards card.
`
`Cards typically have a barcode or magstripe that can be easily
`scanned, some are chip cards or proximity cards.[3] Small keyring
`cards (also known as keytags) which serve as key fobs are often
`used for convenience in carrying and ease of access.
`
`Various loyalty cards
`
`
`
`By presenting the card, the purchaser is typically entitled to either a
`discount on the current purchase, or an allotment of points that can
`e used for future purchases. Hence, the card is the visible means of
`implementing a type of what economists call a two-part tariff.
`Application forms usually entail agreements by the store concerning customer privacy, typically non-
`disclosure (by the store) of non-aggregate data about customers. The store uses aggregate data internally
`(and sometimes externally) as part of its marketing research. These cards can be used to determine, for
`example, a given customer's favorite brand of beer, or whether he or she is a vegetarian. Where a customer
`has provided sufficient identifying information, the loyalty card may also be used to access such
`information to expedite verification during receipt of cheques or dispensing of medical prescription
`reparations, or for other membership privileges (e. g., access to a club lounge in airports, using a frequent
`flyer card).
`
`Loyalty programs can be viewed as a form of centralized virtual currency, one with unidirectional cash
`flow, since reward points can be exchanged into a good or service but not back into cash.[4]
`
`Contents
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`I
`
`1 History
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`I 2 By continent and country
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`I 2.1 North America
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`I 2.1.1 United States
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`I 2.1.2 Canada
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`I 2.2 Oceania
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