There are many a times when customers need to purchase a product or a service from your organisation repeatedly over a long period of time, and as an organisation, you also appreciate returning customers.

When a customer and a vendor build a long term relationship, it benefits both parties since trust and loyalty increases between them. This rapport reduces the time it takes to get through the sales process for the seller and purchase process for the buyer.

To make the process more incentivising and enable your customers to keep purchasing from you, you can offer Loyalty Programs. A loyalty program lets customers earn points by spending a certain amount of money and allows them to redeem these points in their future purchases.

However, loyalty programs are different from discounts. Discounts can be offered regardless of previous purchases. Whereas loyalty programs award benefits to the customer when a purchase is made and only let them redeem the benefits in their next transaction. This encourages repeat purchases and long term benefits. This also means you can spend less on marketing.