Title: Explain the concept of customer loyalty programs.
Course: Fashion Marketing (8140) > Section: Developing a Promotional Mix

Explanation should include how loyalty programs (e.g., points, discounts, free samples, exclusive events, free shipping, email alerts, coupons) are used in the fashion industry to retain and reward customers.

Process/Skill Questions:

- How do loyalty programs increase the sale of merchandise? What are the costs associated with loyalty programs?
- How do retailers determine who their loyal customers are?
- Why is customer retention so important?
- How are analytics used to target and retain customers?
- How is technology (e.g., apps, beacons) used to draw customers in and to interact with them while they are in the store?
- What are the benefits of loyalty programs to the consumer? To the fashion retailer?