What is one effect of loyalty programs on consumers?

Loyalty programs are designed to encourage repeat purchases by rewarding consumers for their continued patronage. This strategy builds a deeper connection between the consumer and the brand, as members often receive discounts, special offers, or points that can be redeemed for rewards. When consumers feel valued and appreciated, they are more likely to choose that brand over competitors, leading to increased spending. As a result, loyalty programs can effectively promote higher sales for retailers by incentivizing consumers to buy more frequently or spend more per transaction. This illustrates how loyalty programs not only enhance customer satisfaction but also drive sales growth for businesses.