Which type of program is specifically designed to reward customers for their repeat business?

A loyalty program is specifically designed to reward customers for their repeat business by incentivizing them to continue purchasing from a business. These programs often use rewards such as points, discounts, exclusive offers, or member-only benefits to encourage customers to return. The focus is on fostering a strong relationship between the customer and the brand, ultimately leading to increased customer retention and lifetime value.

Promotional campaigns, while they may attract new customers or encourage additional purchases, typically focus on short-term sales boosts rather than establishing long-lasting loyalty. Customer referral programs incentivize existing customers to refer new customers, but they do not explicitly reward repeat business from the loyal customer itself. Retention strategies encompass a broader range of tactics aimed at keeping customers over the long term but may not include direct rewards for repeat purchases as a core feature. Thus, the loyalty program stands out as the primary method to directly reward customers for their ongoing patronage.