Which of the following is a primary goal of loyalty programs?

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Boost your skills for the FBLA Introduction to Retail and Merchandising Test. Study with integrated flashcards and detailed multi-choice questions, each providing insightful hints and explanations. Get exam-ready today!

Loyalty programs are designed to encourage repeat business by fostering a sense of appreciation among existing customers. The primary goal of these programs is to retain customers through various rewards and incentives that create a stronger emotional connection to the brand or store. By offering points, discounts, or exclusive offers, retailers can motivate customers to return and make additional purchases, thereby increasing customer lifetime value.

The other options do not align with the primary objectives of loyalty programs. For instance, reducing store operations is more about operational efficiency rather than customer engagement. Attracting new businesses suggests a focus on expanding the market presence, which is generally not a direct outcome of loyalty programs intended for existing customers. Confusing price points contradicts the clarity and transparency many loyalty programs aim to provide in their structure and offerings. Hence, retaining customers through rewards is the central aim of such programs.

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