What is an example of how loyalty programs reward cardholders?

Loyalty programs are designed to encourage repeat business by rewarding customers for their purchases. One of the most effective ways to do this is by offering points or certificates based on spending thresholds. This method incentivizes cardholders to spend more in order to earn rewards that can be redeemed for various benefits, such as discounts, free products, or exclusive experiences.

By tying rewards to spending thresholds, companies can not only boost their sales but also foster a sense of achievement among customers as they work towards earning more points or rewards. This approach encourages loyalty and enhances customer retention, making it a widely adopted strategy in many industries.