Loyalty cards began about a decade ago in Europe, specifically in U.K. supermarket and other retail chains. The concept is to award consumers points, based on money spent, toward gifts, travel (hotels, airlines, rental cars), money back, etc. This became the core of frequent buyer/shopper programs for many of these companies, and they expanded to include multiple retailers in a city, town, or community. They are now used by pure play online, clicks and mortar, and bricks and mortar retailers; and they even have some b-to-b applications.

The winners in the battle to retain customers are those who create one or more competitive advantages in the minds of consumers. A Loyalty Program is a powerful way to provide continuous reasons for your customers to prefer your business over another.