What impact do loyalty programs typically have on customer behavior?

Loyalty programs are designed to reward customers for their continued business, which effectively incentivizes consistent usage of services. When customers know they can earn points, discounts, or other rewards for frequent visits, they are more likely to return and utilize the services offered. This creates a sense of belonging and appreciation, encouraging not just repeat visits but also fostering a long-term relationship between the customer and the business.

In addition, loyalty programs can enhance overall customer satisfaction, as they provide tangible benefits for loyalty and can make the cost of services more manageable through accumulated rewards. The presence of such programs often leads customers to choose a specific salon over competitors, reinforcing habits and preferences tied to the rewards they receive.

This contrasts with options suggesting that loyalty programs discourage visits or shift preferences away from tanning, as these contradict the fundamental goal of loyalty programs, which is to build customer retention and encourage brand loyalty. Similarly, competitive pricing is not a direct outcome of loyalty programs; rather, they focus on rewarding existing customers rather than impacting market pricing strategies.