Loyalty & Retention Programs
Customer loyalty and retention program terminology including rewards systems, referral programs, and repeat purchase strategies.
The metrics that decide whether your brand scales.
Loyalty programs work for some brands and waste budget for others. The difference is usually the math: whether your repeat rate, AOV, and category mix actually justify a points-based or tier-based program, or whether you're just discounting customers who would have bought anyway.
The terms in this category cover the vocabulary of LoyaltyLion vs Smile vs Yotpo, points-vs-tier vs paid-membership models, redemption rate, and the retention metrics that determine whether the program is incremental or cannibalizing margin.
If you're scoping a loyalty program, auditing whether your current one is profitable, or considering a paid-membership model (Amazon Prime style), this is the language.
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Showing 5 of 5 terms in Loyalty & Retention Programs
Points-Based Loyalty
Customers earn points on purchases redeemable for discounts or products.
Tiered Loyalty
Multiple membership levels with increasing benefits based on spending or engagement.
Referral Program
Rewarding customers for referring friends, typically offering incentives to both parties.
Program Enrollment Rate
Percentage of customers who join your loyalty program. Target 20-30% of customer base.
Redemption Rate
Percentage of earned points/rewards actually redeemed by members.
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