Many merchants use customer loyalty programs as long-term marketing tools. These programs encourage repeat purchases and customer retention by rewarding shoppers who display loyal buying behaviours. Some stores even provide rewards for non-purchasing behaviours, such as sign-ups, social referrals, and follows.

In retail loyalty programs, rewards typically come in the form of discounts, special offers, one-time deals, or freebies. These rewards also help to boost the lifetime value of a customer by increasing their average order value and purchase frequency.