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Trust and loyalty rewards have underpinned U.S. consumer spending for decades. Trust makes it easy to do business with a brand while a loyalty program rewards customers for returning. Such programs stabilize demand and supply chains and are effective at increasing revenue in the long run. Smart businesses know how to incentivize their customers and get them in the door with freebies, a deal they can’t ignore or other smart marketing ideas, but once that customer is in the store, they can sell them the more expensive items.
Loyalty program members generate 12-18 percent incremental revenue growth year over year compared to non-members, according to a 2017 Accenture study. However, the pandemic has led to big changes in terms of what types of incentives customers are looking for. In these difficult times, entrepreneurs want to