The success of any business is dependent upon the ability of the organization to generate and retain customers. The well balanced structure of both customer acquisition and retention can reduce cost and boost profitability of the business. When you focus only on customer acquisition, it may increase marketing cost, as acquiring new customers is more expensive than retaining existing customers. So a perfectly balanced approach on both is important for every business. Customer loyalty programs are the best way to retain your valuable customers, moreover, it also helps to generate new customers. Companies use different types of customer loyalty programs based on their customer and business needs. Earn and burn loyalty program is one of the simplest types of customer loyalty program that is best fit for industries like services and hospitality which have a higher number of frequent purchases.

How does an earn and burn loyalty program works

Earn and burn loyalty programs help businesses to create rewarding experiences for customers. The logic behind the working of the program is very simple: Customers can earn points by purchasing products or services of the brand and accumulate them to use as discounts in future purchases or redeem as various kinds of rewards. Psychologically, a behavior that is accompanied by positive reinforcements, such as a reward, is more likely to be repeated in the future. Likewise, rewarding customers for each purchase would entice them to make further purchases in the future. Implementing earn and burn loyalty programs into your business can help to retain valuable customers.