It is irrational to even consider that your best customers will stay with you for the next foreseeable future.
As such from the business perspective you need to come up with a carefully designed rewards program that can help increase your brands’ stickiness. One can also think of these programs as a relationship building process.
You reward your customers for staying with you, for giving their confidence into your products and that way they too feel needed. Do discounts work? They still do but their effectiveness is diminishing every day. The reason is because discounts are a point of sale feature.
It has a limited impact in the sense that the customer feels good only for that one moment, when he is checking out.
Once he has checked out then it is all over. Even then, some customers have to check the printed bill to ensure they have earned any discounts at all. If they don’t, your carefully designed discount program does not even make an impact!
The love affair between your customers and you needs to last longer than that one moment and this is where a loyalty program is more effective. But in order for that to happen you need to first make your customers feel good. Is your business suitable for a loyalty program?
Source: (reward program ) http://lachlanreinhold.weebly.com/1/post/2012/08/how-a-carefully-designed-rewards-program-can-help-increase-customer-loyalty.html