Customer Loyalty Programs

Customer loyalty Programs are important for the success of a business organization. They were first started in Canada by Canadian Tire in the form of giving cash bonus coupons to its customers. Gradually, other loyalty card programs came up with similar ideas for rewarding customers such as Air Miles and Aeroplan.The main idea behind introducing customer loyalty programs was to reach shoppers and make their shopping experience memorable. These companies give rewards in many different forms such as travel rewards, gas discounts etc. These rewards are the way of increasing sales and maintain good customer relations. The other purpose behind introducing loyalty programs is to track buying habits of customers and how frequently they visit the store to buy products. By giving rewards to customers companies assume that they will be a part of their company in future. Also, it is likely that customers with loyalty cards will spend more on products and visit frequently to the store. 
Implementing loyalty programs enables companies to figure out which areas of their businesses are doing well and which need improvement. Nowadays many credit card companies have started loyalty programs such as BMO card has its collaboration with air miles. This has proved as a milestone for card companies to improve their performance and efficiency. The way Canadian economy works is that people like to spend more on shopping & traveling around the world. So different companies came up with an idea of giving travel rewards and so far it has worked really well in improving customer relationships. Even insurance companies are accepting payments through credit cards which are associated with some loyalty programs. So the very idea of introducing customer loyalty programs is to help improve customer service and their shopping experience.