Can I implement a customer loyalty or rewards program?

Yes! Loyalty programs increase repeat purchase rates by 20-40%. Program types include: points-based (earn 1 point per $1, redeem for discounts), tiered rewards (bronze/silver/gold levels with increasing benefits), referral rewards (get $10 for referring friends), VIP programs (top spenders get exclusive perks), and punch cards (buy 10, get 1 free). Implementation features: automatic point accumulation, point balance in customer accounts, redemption at checkout, birthday rewards, anniversary bonuses, and exclusive access (early sales, new products). Psychology matters: points create gamification, progress bars encourage next purchase, and tier progression motivates increased spending. Successful programs balance generosity (attractive rewards) with economics (margins support it). Popular reward structures: 100 points = $5 discount (5% reward rate), free shipping at silver tier, or exclusive products for gold members. Programs work best with clear value communication - "$50 off your next purchase" resonates more than "500 points earned".