A rewards program is when a company gives out incentives in order to encourage a particular behavior. This is a marketing strategy that allows companies to promote brand loyalty, while allowing the consumer to think he is getting something for free.
Rewards programs are a marketing strategy for various types of companies. You may get rewards for using your credit card, buying products from a certain company or even from your employer.
Rewards programs work by issuing points to the recipient each time he engages in a certain behavior, such as buying a product or using his credit card. The recipient then redeems his points for gifts from the company.
Gifts may include gift cards, cash back, or a free or discounted products or services from the company. For example, an airline will give you a certain amount of rewards points each time you book a flight and then you can redeem those points for a free flight.
- Southwest.com: About the Rapid Rewards Program
- PayPal.com: Using Your Credit Card Should Be a Rewarding Experience
- Fidelity. "Fidelity Rewards Visa Signature Card." Accessed June 12, 2020.
- Experian. "What Credit Score Do You Need to Get a Rewards Card?" Accessed June 14, 2020.
- JP Morgan Chase & Co. "Chase Sapphire Reserve." Accessed June 14, 2020.