Which term describes a sales promotion that rewards devoted customers to encourage brand loyalty?

Which term describes a sales promotion that rewards devoted customers to encourage brand loyalty?

• A. Brand switching
• B. Customer loyalty schemes
• C. Brand development
• D. Brand awareness

Answer: (B)

A sales promotion that rewards devoted customers to encourage ongoing loyalty is a customer loyalty scheme. These programs offer rewards, points, or exclusive perks to repeat buyers, aiming to strengthen the relationship with existing customers and increase their lifetime value. They focus on incentivizing continued purchases and brand affinity rather than attracting new customers. Other concepts don’t fit this idea as well: brand switching describes customers moving from one brand to another, brand development refers to growing the brand’s equity and market presence, and brand awareness is about making the brand known to consumers. So rewarding loyal customers specifically targets loyalty-building, making it a loyalty scheme.

A sales promotion that rewards devoted customers to encourage ongoing loyalty is a customer loyalty scheme. These programs offer rewards, points, or exclusive perks to repeat buyers, aiming to strengthen the relationship with existing customers and increase their lifetime value. They focus on incentivizing continued purchases and brand affinity rather than attracting new customers.

Other concepts don’t fit this idea as well: brand switching describes customers moving from one brand to another, brand development refers to growing the brand’s equity and market presence, and brand awareness is about making the brand known to consumers. So rewarding loyal customers specifically targets loyalty-building, making it a loyalty scheme.