All businesses want to retain their most loyal customers who will return in the future for more purchase. They created loyalty programs to nurture and attract loyal customers. The earliest known commercial loyalty program appeared as early as the 18th century. Today of course they are commonplace and an integral part of many businesses’ strategy.

1. T H E H I S T O R Y A N D E V O L U T I O N
O F L O Y A L T Y P R O G R A M S
- L O Y E L A
W W W . L O Y E L A . C O M

2. T H E C O R E O F T H E B U S I N E S S :
R E T A I N T H E L O Y A L C U S T O M E R S W H O W I L L
R E T U R N I N T H E F U T U R E .
F R O M 1 8 T H C E N T U R Y T I L L T O D A Y T H E Y
A R E C O M M O N P L A C E A N D A N I N T E G R A L
P A R T O F M A N Y B U S I N E S S E S ' S T R A T E G Y .
R E S U L T :
L O Y A L T Y P R O G R A M S W E R E B O R N .

3. V I T A M I N F R E S H . N E T
=
1 . C O P P E R T O K E N S
H T T P S : / / W W W . W O O L L E Y A N D W A L L I S . C O . U K / L O T / ? S A L E = M A 1 9 1 0 1 6 & L O T = 1 8 4 & I D = 3 1 7 2 6 2
T H E E A R L I E S T K N O W N C O M M E R C I A L L O Y A L T Y P R O G R A M
A P P E A R E D A S E A R L Y A S T H E 1 8 T H C E N T U R Y .

4. I N 1 7 9 3 , S O M E U . S M E R C H A N T S B E G A N T O G I V E T H E I R C U S T O M E R S
C O P P E R T O K E N S T O R E D E E M I N F U T U R E P U R C H A S E S T O A T T R A C T
T H E M T O C O M E B A C K .
T H I S I D E A S O O N F L A M E D U P A N D C A U G H T L O T S O F S H O P K E E P E R S ’
E Y E S W H I C H L E D T O M A N Y O F T H E M I M P L E M E N T I N G T H I S K I N D O F
C O P P E R T O K E N L O Y A L T Y P R O G R A M S T O O F F E R T O T H E I R
C U S T O M E R S .
T H E S E P E O P L E W E R E P I O N E E R S A N D P A V E D T H E W A Y F O R M O D E R N
C O M P A N I E S T O I N N O V A T E A N D B R I N G V A L U E T O T H E I R O W N
B U S I N E S S .
Copper Tokens
P I C F R O M : H T T P : / / R E A L C O I N S D E A L E R . C O M / P R O D U C T / 1 1 2 - O L D - C A N A D A - C O P P E R - T O K E N S - C O I N S - O N E - B I G - L O T /

5. 2 . T R A D I N G S T A M P S
P I C F R O M : H T T P : / / M Y A U C T I O N F I N D S . C O M / 2 0 1 0 / 0 6 / 0 9 / L I C K I N G - A N D - G L U I N G - S - H - G R E E N - S T A M P S /

6. I N 1 8 9 6 , S & H C O M P A N Y
S T A R T E D P R O V I D I N G G R E E N
S T A M P S T O V A R I O U S
B U S I N E S S E S T O U S E A S A
M E A N S T O O F F E R R E W A R D S T O
T H E I R L O Y A L C U S T O M E R S .
Trading Stamps
P I C F R O M : H T T P : / / W W W . T H E W E L L S T O N L O O P . C O M / T R A D I N G - S T A M P S

7. It once issued 3 times as many
stamps as U.S postal services
With these stamps, customers with
enough green stamps could
redeem products from S&H
redemption center.
This practice was quite popular until
mid-late 20th century.
P I C F R O M : H T T P : / / W W W . P A P E R G R E A T . C O M / 2 0 1 1 / 0 5 / S E L E C T I O N S - F R O M - 1 9 6 7 - T O P - V A L U E - S T A M P S . H T M L

8. L O Y E L A . C O M
P I C F R O M : H T T P S : / / W W W . M P R N E W S . O R G / S T O R Y / 2 0 0 6 / 1 1 / 2 8 / B E T T Y C R O C K E R
3 . B O X T O P S
D U R I N G E A R L Y 2 0 T H C E N T U R Y , M A N Y C O M P A N I E S T R I E D T O
I N T R O D U C E N E W W A Y S O F I M P L E M E N T I N G C U S T O M E R L O Y A L T Y
P R O G R A M S T O T H E M A R K E T .

9. T H E C O U P O N P R I N T E D O N T H E P A C K A G E
A N I N D I V I D U A L L O Y A L T Y P R O G R A M T H A T B E T T Y C R O C K E R
S T A R T E D T O O F F E R T O I T S C U S T O M E R S I N 1 9 2 9 .
C O U L D B E R E D E E M E D F O R I T E M S T H A T W E R E L I S T E D O N
B E T T Y C R O C K E R ' S R E W A R D S C A T A L O G .
Box Tops
P I C F R O M : H T T P : / / W W W . E V E R Y D A Y S P R I N G F I E L D . C O M / E E H S P - B O X - T O P S - C O N T E S T - H E L P S - E A R N - C A S H - F O R - S C H O O L S /

10. 4 . F R E Q U E N T F L I E R S P R O G R A M S
P I C F R O M : H T T P S : / / W W W . A A . C O M

11. Frequent Flier Programs
I N 1 9 8 1 A M E R I C A N A I R L I N E S I N T R O D U C E D T H E F I R S T F R E Q U E N T
F L I E R P R O G R A M , A A D V A N T A G E , T O L O Y A L C U S T O M E R S . I T
P R O V I D E D C U S T O M E R S W I T H B R A N D N E W E X P E R I E N C E S O N
B O A R D .
U N I T E D A I R L I N E S F O L L O W E D U P B Y I N T R O D U C I N G I T S O W N
L O Y A L T Y P R O G R A M , M I L E A G E P L U S .
T H I S T Y P E O F C U S T O M E R L O Y A L T Y P R O G R A M W A S S O O N A P P L I E D
I N M A N Y I N D U S T R I E S , S U C H A S H O T E L S , H O S P I T A L I T Y A N D C A R
R E N T A L I N D U S T R Y .

12. 5 . C A R D - B A S E D P R O G R A M S
Card based programs has been popular and widely used
means of customer loyalty programs since 1990s.
P I C F R O M : H T T P S : / / W W W . C O S T C O . C O M
T H E B E N E F I T S
Vitamin C+

13. T H E M E M B E R S H I P P R O G R A M , A T Y P E O F C A R D - B A S E D P R O G R A M . T H E
M O S T F A M O U S B U S I N E S S I M P L E M E N T I N G T H I S T Y P E O F P R O G R A M
W O U L D B E T H E A M E R I C A N W H O L E S A L E R , C O S T C O .
T H E L O Y A L C U S T O M E R S O F T H I S K I N D O F M E M B E R S H I P M E R C H A N T S
A R E N O T O N L Y L O O K I N G F O R D I S C O U N T S , B U T A L S O S P E C I A L D E A L S
A N D G O O D C U S T O M E R S E R V I C E A N D A F T E R - S A L E S S E R V I C E .
T H I S T Y P E O F C U S T O M E R L O Y A L T Y P R O G R A M C A N S T R O N G L Y T I E U P
T H E R E L A T I O N S H I P S B E T W E E N T H E M E R C H A N T S A N D T H E
C U S T O M E R S .
Card- Based Programs
P I C F R O M : H T T P : / / W W W . R O B C O N . C O M / P R O J E C T / C O S T C O - W H O L E S A L E - N E W - B E R L I N - W I /

14. 6 . C U S T O M I Z E D L O Y A L T Y
P R O G R A M S V I A M O B I L E A P P S
The rise of technology has enabled merchants to provide better customer experience
in different industries and to develop their loyalty programs in more innovative ways.

15. M E R C H A N T S S H I F T T H E C U S T O M E R L O Y A L T Y
P R O G R A M S F R O M R E W A R D S T A M P S , P L A S T I C
C A R D S , P A P E R C A R D S T O
M O B I L E A P P S .

16. Every S$1 spend= 1 star as a reward.
With enough stars, customer can
redeem free drinks in the store.
Frequently sends promotions via
Starbucks' app to members to build up
its loyal customers.
G R A B P O I N T S
S T A R B U C K S ' S T A R S

17. Mobile Apps Loyalty Programs
C U S T O M E R S O N L Y N E E D A S M A R T P H O N E T O D O W N L O A D
T H E A P P S O F T H E C U S T O M E R L O Y A L T Y P R O G R A M S .
M E R C H A N T S C A N A L S O P R O A C T I V E L Y R E A C H O U T T O T H E
C U S T O M E R S W H O A L R E A D Y H A V E T H E A P P S T O E N G A G E
W I T H T H E M T O M A X I M I Z E P R O F I T S A N D T O M A K E
C U S T O M E R S B U I L D U P L O Y A L T Y .

18. 18TH CENTURY
21ST CENTURY
I N 1 8 T H C E N T U R Y , S H O P K E E P E R S O N L Y F O C U S O N
B U I L D I N G U P T H E R E L A T I O N S H I P W I T H C U S T O M E R S A N D
R E W A R D I N G T H O S E W H O S P E N D I N T H E I R S T O R E S T O
M A K E T H E M C O M E B A C K A G A I N .
N O W I N 2 1 S T C E N T U R Y , C U S T O M E R L O Y A L T Y P R O G R A M S
B E C O M E M O R E S O P H I S T I C A T E D A N D C O M P R E H E N S I V E . T H E
R E W A R D S A R E M O R E T A I L O R E D A N D C U S T O M I Z E D T O M A K E
T H E R E W A R D S M O R E A T T R A C T I V E T O A P P E A L M O R E
C U S T O M E R S .

19. T h e f u t u r e o f c u s t o m e r l o y a l t y
W W W . L O Y E L A . C O M